How to Increase Profits Without Raising Your Rates in 2010

increase profitsThe start of a new year is exciting; the sense of possibility about what the year will hold can be invigorating. We don’t know what the next year will bring, but now is the time we hope and plan for big things to happen. One of the most common hopes for a new year is to be more profitable. Usually, a rate increase is one of the best ways to make that hope a reality.

But for many, the end of 2009 won’t result in a boost in pricing, due to a number of factors. So does this mean if you’re not raising your rates, you’re stuck at the same level of profitability over the coming year? Of course not! There are ways to increase your profits other than raising your rates…here are a few.

Cut Expenses

Make the coming year a time for getting on top of your business expenses. You will have to gather your financial data anyway in order to file your taxes, so take some time to analyze where you spent the most over the past year and consider what can be cut. Some possibilities may include monthly services, telephone service, and online memberships.

Outsource Administrative Work

It may seem counterproductive, but you can increase your bottom like by outsourcing some of the day-to-day activities that bog you down and don’t directly bring in income. Consider a bookkeeper to handle your monthly invoicing, or a virtual assistant to manage your marketing campaign.

Diversify Your Services

If you look at the type of services you provide for your clients and explore what their needs are, you may be surprised at all of the new ways you can support them. Expand your current service offerings so you’re in a better position to continue working with existing clients in new ways. Some diversification ideas include social media management, competition monitoring, blog customization, and online marketing management.

Become an Expert

You have a lot of experience under your belt, so it may be time to start sharing your expertise. You can find new business opportunities and expand your network – both of which can lead to increased profits over time – by writing a book, speaking at conferences and becoming a mentor in your industry.

Join Forces

Your competition is probably facing similar challenges to yours, and they share your unique understanding of what it takes to succeed in your industry. Consider starting a joint venture with a colleague for double the marketing impact and increased profits. Plus, you will likely be in for a great learning experience when you begin to work closely with a competitor, and that can benefit your business in a number of ways.

Some of these activities will make your business finances increasingly solid, and others may eventually allow you to charge higher rates. The key is to continue to consider new activities that have the potential to boost your profits throughout the year.

How do you plan to increase your profits in 2010?

Image credit: wagg66

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  • http://www.article-elf.com/ forex robot

    Thanks for the great post. I have bookmarked it and will return for new posts.

  • http://www.isquaretechnologies.com SSJ

    Well Said Mate. Let me add something here for Outsourcing. This is something that is becoming more popular these days. The pay is good, and it also gives you a chance to become very recognized without having to do a lot of advertising.

    -Saurabh Shyara – Owner(A Web Design Company)

  • [MW2CC] Admin

    This is a fantastic article! Those are very solid points. Another useful idea may be to restructure your business to change things up a little bit. For example, if you’re running a website, think of a way you can rearrange in the navigation that makes sense. Change the homepage and add an appealing image. The way you present something is often more important than what it is you are presenting.

    If you have any questions, feel free to contact me at administrator@modernwarfare2cc.com! :)

  • Bob

    A Virtual Assistant is very in demand business today. It helps a lot in online business services and it’s more cheaper.

  • Avery Otto

    This is a great article by Alyssa Gregory for pragmatic suggestions that creatively make results happen for the bottomline. As Saurabh mentioned outsourcing is another important way to save money. Here’s an article I ran across that emphasizes the same need to cut cost and not quality: http://it.toolbox.com/blogs/future-of-work/outsourcing-20-36359