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How Do You Plan For Profit Growth?

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Old 06-07-2017, 08:40 PM   #1
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How Do You Plan For Profit Growth?

This is year 5 of the business and each year my net profits have gone up by about 10%. Before the start of this year I re-structured my business plan and budget as well as the way I figure my rates. As I look forward to the upcoming years I hope to build up the business more and boost net profits.

As I look at this line of work I see three ways to boost profits.

1) increase quantity of work completed to boost gross profits
2) charge more for your work
3) work more efficiently to boost profit margins

Am I missing anything? Where do you place most of your focus for growth? All three? Are you actively pursuing profit growth?

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Old 06-07-2017, 10:37 PM   #2
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Re: How Do You Plan For Profit Growth?

I'd say #4 is reducing overhead (unless you include that in working more efficiently). Figure out where you can cut current costs without sacrificing quality or service. Maybe you can print advertising materials cheaper somewhere else. Maybe you can do a cost-benefit analysis to see which tools and equipment are worth spending more or less on. Maybe you can buy certain materials in bulk that you use often. Etc. Etc.

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Old 06-07-2017, 10:59 PM   #3
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Re: How Do You Plan For Profit Growth?

Profitability for me varies dramatically from job to job...some just don't pay as well as others...avoid them.
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Old 06-07-2017, 11:44 PM   #4
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Re: How Do You Plan For Profit Growth?

Cherry picking profitable jobs and doing them efficiently.

They tend (for me) to be short in duration, but it's fun to make $800/ hr for an hour or two.

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Old 06-08-2017, 02:08 AM   #5
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Re: How Do You Plan For Profit Growth?

Do more
Charge more
Spend less
Invest in time saving tools to enable you to do more
Dont waste time on paperwork - make up standard forms for everything you do regularly

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Old 06-08-2017, 08:47 AM   #6
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Re: How Do You Plan For Profit Growth?

Control labor costs and incentivize labor.

Fire crappy employees.

Offer bonuses for behavior that makes you money.

Leverage your earning potential by turning other peoples time into your money.

Develop just in time labor through subs and on call employees so you only pay for workers who are working.

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