Want to Increase Your Profits…Try This

By: First Union


Want to Increase Your Profits…Try This

You've got your business up and running. Now is when you need to think about how you can increase your profitability. Turning a profit is after all how you're going to stay in business over the long term. And becoming more profitable doesn't have to be about making major changes—even smaller adjustments can have an impact on how much money the business is making.

Have a Mix of Items

Selling or emphasizing one product and/or service could be what is holding you back. Take a good hard look at that product. How much are you making on it? If let's say, it is selling for 5.99 but it costs 4.50 to make, then your profit margin on this particular item isn't as attractive as it might be for products that cost a lot less to produce. And, if you are successful at integrating another less expensive product, then it serves you well to try and pique your customers' interest in this alternative item.

Revisit Business Costs

As you grow, you have to keep an eye on those expenses. Keeping your business lean means keeping it profitable. Somethings you might do to this end:

  • Start practically and take stock of every single expense. Know what is leaving and why. You may discover extraneous costs that can afford to be cut out.
  • Look at your processes. As your business expands you're likely adding responsibilities—is this being done so efficiently? And potentially is there a way to automate some of these tasks?

Time for a Price Increase

If you are not as profitable as you think you should be, the issue could be one of pricing. Year after year the cost of operating a business does go up, and so it is acceptable that your prices reflect this. Certainly, you don't want to price yourself out of being competitive, but you do have to keep up with inflation to turn a profit.

It could be also that you're just experiencing a slower sales season and so profits are not where you need them to be. In that case, First Union Lending may have a solution for you. Our business lending products are designed to help small businesses in a variety of situations. Call today!

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First Union Lending LLC is a dually licensed Lender/Broker with its main offices located at 4900 Millenia Blvd First Floor Orlando, FL 32839. First Union Lending LLC and its ads are meant for continental United States, including Alaska and Hawaii small business owners. Business Loans offered by First Union Lending LLC have varying rates and terms that can range from 30 - 120 payments and all rates and terms are based on eligibility of the business and its owners. The actual terms are based on credit, business history, industry, amount and terms. As an example, a $5,000 loan paid over 5 years at 8% would have a total repayment of $6,082.92 over the life of the loan. We use the latest encryption to protect sensitive information transmitted online, as well as run our own secure server network to ensure your information is protected offline as well. California loans made pursuant to the California Financing Law, Division 9 (commencing with Section 22000) of the Finance Code. All such loans made through VBJ Consulting, LLC, a licensed finance lender/broker, California Financing Law License No. CFL#60DBO78163

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