What’s Standing Between You and Your Profits?
You put a lot of time and effort into your business, so you deserve to see your profits reflect that hard work. There’s a good chance that you got into this business because you’re as passionate about technology as you are about finding the answers to problems. Those traits are why you excel in your business, but the administrative side of success might not come as naturally.
To help you make sense of some of the things that could be standing in the way of your profits, we’re sharing our profitability checklist. Start here to see where you could make an impact on your bottom line and your overall success.
- Time is money! Don’t forget that every moment you or your techs spend working on solving a problem represents the billable time you should be paid for.
- Don’t allow time to slip through the cracks. Make sure your techs are able to track all of their time, in real time, so that nothing is forgotten.
- Realize that employee utilization equals billable time, which turns into profitability.
- Become an expert at each step in the cash flow cycle. The more you understand each step of the process, the better you’ll be able to streamline your processes.
- Critically evaluate spending. Every expenditure is money out of your profits, so make sure you’re taking a hard look at outgoing payments.
- Offer incentives for early payment. Having clients pay ahead of schedule can make an immediate positive impact on your cash flow.
- Listen to what the market is telling you. Your clients know what they want, so make sure you’re reaching out with surveys, phone calls, or emails to find out what they need most.
- Compete on VALUE, not price! Don’t get caught up in competitive pricing with another company that might not be offering the same level of service. Keep your prices in line with the client’s return on investment.
- Decide on a pricing structure and acceptable modifiers. Know before you go into a new agreement exactly what you’ll charge, and what potential modifiers could come into play to meet specific client needs.
Put the right processes in place, and you’ll bring in profits that illustrate everything you’ve put into your business. For more ways to see your profits rise, download The Ultimate Guide to Profitability.