How To Calculate Business Profit
It’s simple. Use our profit calculation tool below to understand how much profit your business is making monthly, considering: owner funding, loan repayments, monthly costs including rent, business rates, insurance and more, your service/product income and cost and finally salaries. This will take an estimated 10-15 minutes to complete. If you would like some assistance or discuss the outcome, don’t hesitate to get in touch with our team or book a Discovery Session with Brent.
Looking to increase your business' profit?
Perhaps you are looking for ways to reduce your overheads? Looking for ways to reduce your bills? Thinking about how customers can spend more with you and the impact this will have? The questions are endless, but can all be answered below using our interactive tool below! If you would like further advice on ways to grow your business, please get in touch.
Want to discuss this in more detail, or need help in completing this?
We know that business finance can sometimes feel a little overwhelming so we work to a step-by-step approach to make the complex simple.
If you are looking to understand your business finances a little better and the opportunities for you, or are ready to take your business to the next level, get in touch with Brent who can help you achieve the numbers that matter to you.
5 ways to increase your business profits
If your business has a high profit, that typically means it is running as intended, but if you have low profits, it may be time to look at making some improvements. Below are 5 methods businesses can use to increase their profits and put their financials back on track:
1. Increase your prices
Decreasing the prices of your products or services to stay competitive doesn’t always guarantee more sales, it can actually have a negative impact on your profit. Try evaluating your products or services, see how much time, effort and expertise goes into delivering them and adjust your pricing to fit them appropriately.
2. Increase the number of customers
The more customers you have the more profit your business is going to make. Look at ways you can increase likelyhood of repeat business with your current clients, and ways you can reach new audiences. Reaching more potential clients can be made easier with online and offline marketing, like flyers and business cards or TV ads and social media advertising.
3. Increase how often your customers make purchases
As mentioned before, your current customers can give your company repeat business. Find methods of increasing how often your clients purchase from you. For example, if you provide a monthly subscription service, roll out a two week subscription package with added value to your customers.
4. Increase the amount that customers purchase
Increasing the amount a customer purchases can also be very beneficial to your business. This can be done with low cost, but high profit add-ons. For example, online stores use historical data in order to recommend products to visitors on their website. This is done by showing what other customers bought alongside the product you are currently viewing.
5. Increase the efficiency of product/service creation
If you don’t want to increase the prices of your products or services, why not make improvements to the efficiency of how you delivery them? Decreasing the cost of sales can be done in many ways. For example, if a printing company sources quality paper for a lower price, this will increase the amount of profit for each print, without increasing the price for their customers.
You need up to date financials you can rely on and manage easily. As chartered accountants, OutRise is here to help.
Growing your business presents its own problems. Overcoming those problems requires its own focus.
Building your business' value can be done efficiently if it is done correctly and you measure what matters.