Eliminating unnecessary expenses can be one of the fastest ways to add profits to the bottom line. This is because while only a percentage of any additional sales is available to increase the bottom line, depending on the direct costs of the services or products you sell, every dollar of any reduction or elimination of an expense goes right to the bottom-line — increasing profits.
For example, if you sell an additional product for $100.00 and have a margin of 50%, then $50.00 is the most that can go to the bottom line. But reduce your monthly bills by $100.00 and $100.00 goes to the bottom-line month after month.
Here are 5 things you can do to increase your bottom line.
1) Review your bank and credit card statements to ensure there are no recurring payments for services you are no longer using.
2) Review the fees being charged by your business account; if they seem out of line check with your bank on ways to reduce your bank charges. If your bank will not work with you shop other banks.
3) Review credit card processing fees and other charges. Are you paying to rent a credit card processing terminal you could easily buy for a fraction on the annual rent you are paying?
4) Eliminate unnecessary overtime. Getting on top of your payroll and employee hours worked to ensure that unnecessarily clocking in early and out late don’t result in a few hours of overtime each week.
5) Review pricing of your products or services. Small increases can often have large results as the additional revenue feeds right in to the bottom line.
Need help finding additional way to increase your profitability? We can help, just give us a call.