4381 days ago
Last week I discussed the strange reluctance of some businesses to increase their prices in order to increase profitability/reduce losses. Hopefully you have already considered how you can achieve that in the New Year. Next week I shall look at the third way to improve profitability – cost cutting. Today it is the hardest but least painful way: increasing volumes.
4389 days ago
There are only three ways to increase profits: cut costs, sell more by volume or to put up prices. I shall address the first two at a later date but the quickest route to increasing the profitability of your business is to stick prices up. Yet often we are reluctant to do so. You sort of accept that wages will go up year on year if only to match inflation so why should prices not follow?
4407 days ago
Starting a business and running it in your early years is bloody hard. We all know that. We now that 70% of start ups will go bust within seven years. We would all rather be in the 30%. And in your early years there is a temptation to do almost anything, to take on almost any contract in order to ensure that your business is in that 30%. But that can be a mistake.
As it happens, twelve years after starting my first company I find myself more or less starting up all over again trying to grow my revenues as a writer through various enterprises and agreements. Naturally I have a business plan. Naturally I will not hit the targets set out for years one and two (if ever). Given the uncertainties that exist in any business I may beat them. I may miss them. All I know, from past experience, is that I shall not hit them exactly.
There is a temptation
