Hello and happy Friday, Community friends. I enjoy reading up on business articles to gain knowledge and spark my own ideas. I came across an article today published onInc.com that offered somewhat out-of-the-box ideas to improve margins and stretch your business budget. This particular info is meant to serve as a way to help make the very most of the funds you currently have. Here are the points that were included:
Raise Your Prices
Now I know this may sound crazy, but according to David Finkel, Author, 'The Freedom Formula: How to Succeed in Business Without Sacrificing Your Family, Health, or Life,' "The truth of the matter is, if you have limited capacity to produce and more demand for your product or service, you need to take that into consideration and adjust accordingly." Finkel has also adopted the notion of the best customers being "those that yield the best margins, pay the fastest with the least hassle, and are most enjoyable to work with."
2. Improve Your Collections Process Improving your collections process can be translated as collecting more of what you're owed, and faster. One idea mentioned in the write-up suggests adjusting payment plans. For example, if a client or company you're working with starts to fall behind, their monthly recurring payments may need to be switched over to weekly or bi-weekly. While this change is meant to be short-term, it will still help them stay on track, and you in turn receive your funds faster.
3. Reduce Non-Strategic Expenses Strategic expenses are the things that you spend money on that produce or protect revenue. Non-strategic expenses are, as you may have guessed, pretty much everything else. Reducing unnecessary costs is a sure way to really make the most of your budget. Examples of cutting non-strategic expenses may include salespeople who aren't selling, or marketing strategies that aren't working, and others varying from business to business. If your business remains the same without what you're planning on getting rid of, it's safe to say that's a good expense to cut.
I hope these ideas give you some insight to a different perspective; one you may not have considered before. There are some additional details concerning each point in the article linked above. And as always, if you have any other idea on how to improve margins and stretch your budget even further, we'd love to hear from you!