So you want to be more profitable. We all do. There are two ways you can increase your profits:
- Increase your sales income
- Decrease your costs
Are you controlling your costs?
There are a lot of easy steps that you could take to help you with controlling your costs, from shopping around for the best deal, to turning off your computer monitor at night. The great thing about controlling costs is that this is within your control. Increasing your sales income depends on other people – after all, you have to convince somebody else to buy. Controlling costs is something you can do yourself.
And don’t forget that tax is also a cost for you to control. Yes you have to pay tax on your profits, but make sure you are paying tax at the right level, not paying too much tax because you don’t know what you can do to reduce your tax bill. It all affects your take home pay.
Have a look at the below infographic from Sage – only 39% of small businesses focus on reducing costs, so controlling costs is a great way to give you an extra competitive advantage as well as increasing your profits.
This infographic was produced by Sage Software
