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Total Views: 64Word Count: 546See All articles From Author When you're just starting out in business, it's a safe bet that you need more clients. But what if you have been up and running for a while, and you're still not making as much money as you would like? You may be in the habit of thinking that attracting new clients is the answer, but this isn't always the case.
There are many reasons why a professional services business might not be earning enough Womens Dwayne Haskins Jersey , but they typically fall into four categories: not enough revenue, not enough profit, not enough customers, or not enough time.
Start by looking at your gross revenue -- the total amount your customers pay you over the course of a year. How does it compare to others in the same line of business? Ask some trusted colleagues or check with your professional association for any statistics they may have.
What percentage of your gross revenue remains after you cover cost of sales? This is your gross profit. As a service business Womens Da'Ron Payne Jersey , you may have no cost of sales. If, however, you are selling books, tapes or software Womens Landon Collins Jersey , or accepting credit cards, your inventory cost and credit card fees need to be deducted from your earnings before making other calculations.
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Consider raising your rates, which may mean finding a market that is willing to pay more. Look for customers who will give you higher dollar volume contracts or place larger orders. Think about hiring more administrative help, which would free up more of your time to charge out at professional rates. You should also work to increase your passive income by selling products created by you or others, reselling some of your existing work Wes Martin Jersey , or licensing a process you have developed.
LOW PROFITS - If you are spending more than 30% of your gross profit on overhead and marketing, work on improving your profits. Look for ways to cut expenses by reducing your overhead, or focusing on your most profitable line of business.
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