One of the common problems I’ve seen with startups is profiting.
Many don’t know if they are profiting or not, it becomes even dicey when you’re making sales. I mean, it’s easy to conclude that you’re not profiting of you aren’t making as much sales or not even selling at all but once you see the sales rolling in, you can almost loose your sanity if you can’t trace profit.
Today let me point you to the first set of things to look at if you aren’t profiting.
Note: This is for businesses who are already making sales but cannot tell where the profit is.
TRACK…First things first, track every sale, track every expense, track every kobo, be sure you know what is bringing money in and taking money out. The problem for many is simply that they do not have record of anything, they are doing quite well but cannot tell because they aren’t tracking. You could just be profiting but incurring surplus-to-requirement expenses cause you have a vague idea about your profit.
PRICING…is your product/service rightly priced? We’ve been thought before now that (Cost of production + profit = selling price), If you’ve been pricing this way, you could just have be pricing wrongly.
To price your product/service correctly, (cost of production + Business Expense + Profit = selling price)…Your business expenses would then be an average total of transport cost, rent, electricity, salaries, tax, Internet, maintenance etc over a period of time, could be monthly. Price correctly and thank me later.
YOU’RE NOT SELLING…Once you price correctly, your price point would be decent but only to those who can afford it. In other words, your pricing will only make sense to the right kind of people. Invariably, you must sell to the right kind of people who want the solutions you offer and can afford to pay for it. If you do not, you’ll end up not selling and eventually without profit.
Make these changes and send your testimonies with neatly enveloped tithes.
Peace, Love and Cold Zobo