2 Ways to Maximize Your Money
Do you have competitors that seem to enjoy their work & their money more than you do? Do you wish you could keep more of the money you make?
There are really only two ways to make this happen: either you reduce your costs or you increase your prices. Reducing costs is where most business owners — along with their accountants & their financial advisors — start.
I have two problems with this approach that focuses on the bottom line. The first problem with focusing on reducing expenses is that expenses are necessary to run your business. If you just start cutting costs, without knowing what the ROI — or the Return on Investment — of those costs are, you may be making your job harder in the long run. Slashing expenses may actually make the job of improving the bottom line more difficult.
The second problem with focusing on reducing expenses is that the bottom line isn’t just about expenses. It’s also about revenues. We become so fixated on the bottom line that we forget about the top line.
We forget about what’s actually coming in because we’re so focused on what’s going out.
Part of the way that we can keep more of the money we’re making is to make more money.
Are you bringing in enough revenue? A lot of owners will respond to that question by saying, “I need more customers!” Maybe, but you might also need to stop hunting for more customers & spend some time focusing on the customers you already have, & on your ideal customer that is probably still out there waiting to hear from you.
Bring so much value to that ideal customer that you can raise your prices, generate more revenue & in the meantime, reduce your advertising & marketing costs.
By shifting your focus away from the bottom line & looking at the top line, you might actually put your business in a position where it can generate greater revenues at a lower cost.
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