Business Insight

When it comes to making tough decisions about your business, it can be hard to know what to do. If you’re feeling like you need to make changes to your product line, especially whether or not to remove products in order to save money, don’t worry – you’re not alone. Here are a few tips on how to decide if that’s the right step for you. The most important thing to remember is that removing products from your line should always be a last resort. If there are ways you can reduce costs without eliminating any items, that’s always the preferable option. However, if you find yourself in a situation where you need to make cuts, here are a few things to consider. Assess your inventory.   Take a look at what you currently have in stock and see which items are selling the best. You may want to consider discontinuing products that aren’t moving over the past year to two years – or even within a shorter time frame because obviously, they have not made you a profit sitting on the shelves. Evaluate your production costs. One of the first things you’ll want to consider is whether the product is profitable. If it’s not making money, then there’s no reason to keep it in your lineup. Compare the cost of producing each item with how much revenue it brings in – if the numbers don’t add up, it might be time to let that product go, or search for more cost-effect ways to produce the item. Another important factor in evaluating your product’s costs is your pricing. Do your competitors have a comparable product and is it selling? How much is it selling for? You may need to adjust your asking price or you may find that your version of the product is outdated. Consider your customer base.  It’s always important to think about who your customer is and what they want. If you’re getting feedback that certain products aren’t resonating with customers or that you have received complaints, it might be time to consider eliminating them. Another thing to consider is that if you have a product or two that hasn’t moved in a while, yet you think that your customers really need it, want it, but aren’t sure why they haven’t bought it, you could add it to another item or empty old stock, using that item as a bonus with purchase.  If there seems to be an increase in sales for the bundle, you might have a reason to continue producing the time that has been stagnant. However, it’s very likely that making several thousands of these particular products again may land you back where you started – many unsold products on the shelves.  Making tough choices about your business can be difficult, but if done thoughtfully, it can ultimately help you save money, thus increasing your revenue and growing your company. 

Jim Rohn said, “You are the average of the five people you spend the most time with.” This is definitely true in business. When you are partnered with people who are positive, motivated and have integrity, your business will thrive, online and offline. If you’re looking to partner with someone, be sure that you can answer these questions before agreeing. Does this partnership align with my goals, values, and interests? Will this be an equal, respectful, and fair partnership? Will there be clear communications and commitment to working as a team? Remember, it’s okay and often wise to say, “No thank you.” Not everyone who will ask to partner or work together with you will be a good fit, just as not everyone you may ask will see you as a good fit for them.  When you have someone to help you brainstorm ideas and support you through partnerships and collaborations, it makes things much easier. With a partner by your side, you can reach new heights and achieve great things.

Creating a budget for your business is an essential part of having a successful and profitable business. Today, I’m going to help you to determine what your budget is and I’ll also give you a couple of easy tips for sticking with it. The first step is to set realistic goals. You can do this by looking at how much money you want (need) to make each money versus how much you are spending. Look at how much you spend on expenses – including everything from utilities to office supplies and stamps to everything that you purchase to create your products or services. Knowing these numbers will give you an idea of how much money needs to come in each month versus going out – this will form the basis of your budget. Estimate on the high side with your revenue goals, and even with your expenses, to be sure that ou have a bit of a bumper for adjustments. The goal here is to ensure that you’re not overspending. You may have variable kinds of expenses to document, and in those cases, estimate on the high side (think inflation and/or the vendor’s usual price increase), or consider entering an average for the previous twelve months.  As for income, idepending upon your industry, it may be difficult to determine exactly how much revenue you will receive monthly. Once more, calcualte an esimate or use an average of the previous twelve months to help you create your budget plan. It’s also important that you stay organized and consistent when it comes to tracking all of your expenses each month; this will help prevent any unpleasant surprises down the road when it’s time to review your budget. Software programs specifically designed for small businesses (such as QuickBooks) can make this task easier by allowing all of your financial information (including invoices, bills, etc.)  to be stored securely in one place instead of scattered across multiple files and documents. Keeping everything together in one place makes it easier for you (and any other stakeholders involved)  to review progress and quickly spot any discrepancies or problems that need addressing sooner rather than later. Creating and following a budget doesn’t have to feel like an impossible task! Once you take the time up front  to lay out realistic goals and track expenses carefully each month, staying within those parameters becomes much easier over time — and before long, understanding plus managing even complex financial information will become second nature! Just remember that taking control now means having more flexibility later on when trying new strategies or expanding operations; this kind of forethought allows small businesses owners more freedom while still remaining financially responsible and secure throughout their growth process!