As a craft business owner, I don’t need to tell you that Christmas is most likely to be your busiest time of the year. And this is also when you want to make the most profit.
You know that if you have low Christmas sales, then it is going to make it challenging to reach your targets for the rest of the year. You just know it’s going to be tough for whatever time is left.
This not only makes sure you are always worrying about it, but it also means you don’t enjoy the times you take a break.
So what if I tell you that it’s possible to become more profitable without making more sales!
Yes, it’s true, you can, and the run-up to Christmas is a great time to start doing it.
I’ve written several posts in the last few months about your finances and if you glean nothing else from them, just know that:
Profit = Income – Expenses.
So to make a profit, there are two areas you need to focus on.
Many people focus on sales. And of course, making sales is vital, as you can’t have a thriving business without having sales.
BUT what about your expenses.
Making sure you are not wasting money can increase your profitability without having to increase sales.
So before you get too busy, take a look at your expenses.
- Can the cost of any of your materials be reduced by changing to a new supplier?
- Are you still paying for that subscription that you no longer use?
- Are your ads getting a good return on investment?
- Can your products be tweaked to be cheaper to manufacture, without impacting their quality?
- Can you sell some of your inventory that you no longer use?
I’m sure there are many more things you could think of that is specific to your business that maybe you can cut back.
Once you start finding savings, you can’t stop.
Reducing your expenses instantly makes you more profitable without you even having to make a product.
Making sure you are getting good value for money FROM EVERYTHING you use should be something you always keep an eye.
The bottom line of whether your business is successful is your bottom line (and I’m not talking about the size of your butt here!). Both the income and the expenses!
Find out more tips on how to improve your business finances here.