As a business owner, you likely have one main objective–to sell your product. Of course, you want to provide good customer service and to have satisfied clients. You probably also hope that your employees will enjoy their jobs, do good work, and consider you a reasonable boss.
However, if you’re looking to increase your bottom line, there are several steps you can take:
1. Raise the price of your product. As inflation increases, it is reasonable to raise the price of your product. If it is not a significant increase, most consumers won’t object. You probably don’t want to do this frequently, but when it is warranted, raising the price is a good way to generate extra income.
2. Reduce the cost of manufacturing. Reducing the cost of manufacturing without lowering quality is also a possible option. Many companies choose to move their manufacturing overseas where labor is cheaper, but business owner Jamey Bennett told USA Today that he moved his manufacturing back to the states because of too many headaches including middle of the night conference calls when his product was manufactured overseas.
3. Reduce the cost of routine expenses. People tend to set up their utilities and not think about them again. The same can be true for your business. When was the last time you compared rates on phone and Internet service? Take the time to compare business electricity prices at Make It Cheaper. You may be surprised that you can find lower rates now compared to what was the best price when you first signed up for service.
4. Outsource some tasks. There may also be some tasks that you can outsource that will free up your employees to do more important work that can help your bottom line. While you don’t want to outsource all tasks, outsourcing some can pad your bottom line because you may be able to pay a lower hourly wage and not have to cover insurance, which can be costly.
There are many ways that business owners can improve their bottom line from increasing the price of their product to reducing manufacturing and everyday expenses. The key is to keep exploring what options are available to you and to do this yearly.