What is your net profit margin? Is it something you keep an eye on? You won't know if you're even making a profit if you don't know your numbers, so this topic is an important one for every entrepreneur to consider. Let's talk about it!
What you'll hear in this episode:
- Look for ways to increase your sales and decrease your expenses
- Figure your net profit margin by deducting all expenses from all revenue; the part leftover is your profit
- What is "net profit margin"? The income you have after all expenses and taxes have been accounted for
- Each industry has its own profit margin, depending on its specific products and services
- How to increase sales:
- Offer more hours of availability
- Increase prices
- Eliminate unnecessary expenses
- What to do if your products and services are not generating revenue:
- Find a way to promote them
- Remove that product or service from your offering
- Use the product or service as an add-on bonus item
- What to do if you feel the financial "pinch":
- Analyze the market
- Evaluate the overall economy
- Look for unexpected expenses
- What to do if your net profit margin is negative:
- Look at your numbers and expenses
- Re-negotiate contracts
- Adjust business hours for maximum sales
- Don't forget to take a yearly or quarterly look at your net profit margin. These numbers are something you need to be constantly aware of, to maximize your profitability and keep your business in the black! It's another piece to game-changing your business!
