3 Ways To Ensure Your Online Business Actually Makes Money!
Do you own your own online business or a business of any kind? Can you honestly say at this very moment in time that you are making money in your business? Chances are you cannot truly answer this question with certainty.
If you own your own business, you are more likely to shut down because of loss of money than you are to succeed. So how do you ensure that your online business makes money? Today, I am going to share with you 3 tips to help you do just that.
How to ensure that your online business makes money…
#1 Know your numbers!
If you don’t know the numbers of your business, you don’t have a real business! So what do you need to know? The first thing to know is are your profit margins? Profit is what keeps your business in flow. So first you need to figure out how much does it cost you to make your product? The 2nd thing you need to know is how much does it cost you to advertise to get a customer of this product. Figure out how much you spend in each of these areas, because it is extremely important to know where the money is actually going.
Then figure out how much you are charging for your product or service, so you can see how much profit you’ll earn for every buyer you get. You won’t be able to keep your business going if you don’t know how much capital you have at any given moment or where the money is going every month.
It is also important to know how much money it costs to pay your bills, pay your salaries and how much you have left to grow your business.
Then, once you have all these numbers figured out, you need to figure out what those numbers mean to you and your bottom line. Then and ONLY then can you really figure out if you’re spending more money than you are bringing in!
# 2 Create a simple system to track your money in real time
The system you use to keep track of your finances needs to give you an accurate look at your money at any given moment. This does not mean looking at a Profit and Loss statement of what happened last month, or to see where your money went. That doesn’t really help you in the here and now. I started using a new system that I really liked, and it’s just one example of a system you can use, but if you’re interested in looking at the one I use, it’s from a book called “Profit First” by Mike Michalowicz."If you can't tell how much money you have in every area of your business at a glance, your financial system won't work for you" Click To Tweet
According to the author, one of the best thing you can do to help you get a simple snapshot of your business financials is to open a few different bank accounts. Seriously… it’s extremely helpful – here’s why…
The first bank account is created specifically for operating expenses. The second bank account is only for the income that comes in. Their 3rd account is created for paying salaries, and yet another account is created for saving specifically for taxes. And last but not least, a final one is created for profits.
All of this may seem overwhelming or confusing, but it is actually very helpful. Doing this allows you to look at all of your accounts and see at a glance how much money you have coming in. You can also see how much money you have to spend and how much you have spent. Knowing this makes operating your business much easier for you.
#3 Ask yourself “How can I make more money?“
Continuously ask yourself the question of “How can I make more money to ensure that my business keeps growing?” By keeping this question in the forefront of your mind, you’ll be open to more options when they arise.
One of the ways you can earn more money is to sell your product to more people OR sell more products to those people. Another way to earn more money is to raise your prices to increase your profit margins. And a third way is to add in a new product to your business that is of a higher value.
Lastly, consider the possibility of setting up a product that provides continuous value and incorporates recurring payments customers are happy to pay to provide residual income.
Residual income guarantees consistency to make sure your online business makes money. This way, you don’t have to be so concerned with the highs and lows that naturally occur with sales of other products.
Let’s recap how to make sure your online business makes money…
Those are 3 things you can do to evaluate your business on a regular basis to ensure that you have money coming in on a consistent basis.
Additionally, those things will allow you to know how your business is doing at any moment in time. That allows you to make sure your online business makes money consistently.
Implementing those 3 tips right now alleviates the worry and hassles of your business folding due to unknown variables.
If you’d like more information on how to grow your business faster and easier, I have a brand new free training that gives you the ESSENTIAL GUIDE to everything you need to create a profitable online business.
This video training is quick, to-the-point, and it goes deep into the concepts you can use now to make sure you are consistently earning more money in your business!