How to Increase Profits

I own my own business which has been struggling to make a profit for the last 6 years. My personal income needs to be higher considering the amount of work I do. I have noticed a small upturn in the last 2 months, and I need advice on how I can make more money from my business from now on because it's time that I received some return for all this work.

Your situation is a very common one and a lot of small business owners in Ireland have struggled to make a profit or an acceptable level of income, especially since the recession started. Even though small business owners employ a large number of people in this country,  I don't think the powers that be realise how little most of these business owners get paid especially when you consider the hours that they work, the amount of responsibility they carry and the risks that they have to take in their business. So yes I believe that you along with very many business owners deserve to start receiving a better return on your time and investment.

How to increase profits is a topic that I have received a lot of queries on in recent times and I hope to write some more articles about this over the coming weeks. Before I get into this I want to give you some advice that is based on my own 25 years experience of being a business owner and an advisor to business owners.

To increase profits in a business can become a very complex matter. There can be a lot of things to consider such as what the marketplace wants, staffing, staff responsibilities, pricing, possible cost cutting, new products/services, improving existing products/services, figuring out which activities are making you money and which are not, minimum prices, which customers are profitable and which are not, competitors, the role of the business owner themselves, figuring out the sales and marketing plan, banking and financial matters and supplier negotiations to name just some of the things to consider.

If you are looking for a way to impact your profits quickly then I advise you to contact your accountant or a trusted business advisor and set aside time to sit down with them to discuss your situation. Over the years I have used the services of several business advisors in my own business and each time it has allowed me to get a new, fresh perspective on the things that I needed to do. Make sure to contact someone who has a proven track record and who is action oriented. This person needs to have the experience and ability to quickly diagnose your position. Usually it's possible to identify actions in the first meeting that can be implemented within a week and which will quickly make a real difference to your business. Your local enterprise office has a list of business mentors who may be able to help you or give me a call and I can also suggest some good advisors.

If you can take some simple actions quickly then this will start the change process to more profits and will give you the confidence to move to the next stage in making your business more profitable.