By: Michelle Loretta, Owner and Chief Strategist of Sage Wedding Pros
If you’re like most, you want to have a stronger business in 2017 than you had in 2016. Better can mean different things to different people. But, I know a lot of wedding business owners that want to be more profitable. I wouldn’t mind having a little more money in my pocket each week. AMIRIGHT?
Financial profitability for the small business owner is made up of a LOT of moving parts. BUT, based on my experience over the last 8 years of working with wedding businesses on their financial strategies, there are 3 areas that I see most people missing the mark.
3 Things You Should Do to Make More Money
1.) Raise Your Prices
Most business owners who are struggling to create a healthy profitability in their business don’t have enough profit margin. This stems from pricing being too low. Even if your prices are exactly where they should be at, you can likely do a little bit of a price boost. Even a small boost of 10% on your pricing can lead to big results. Pricing is the #1 way to be more profitable. Now, keep in mind: pricing is a marketing decision. Your price needs to match your market strategy (your target market, your niche, your level of service, etc.) BUT – when I test things financially – it’s always pricing that is the culprit for a business’s small profits.
2.) CUT Out Waste
Most small business owners in the wedding industry don’t spend a lot. Honest. It’s very rare that I see a business that is being excessive in any of its costs or overhead. So, when I say ‘cut out waste’, I’m talking about making small tweaks to your expense budget to see results. Here are a few wasteful things to look for:
- Ads that don’t give you any ROI
- Software subscriptions you no longer use (or that you can downgrade)
- Staff meals (or: getting excessive with how often you buy the office lunch)
- Rent (do you really need to be an in office – or is it for ego?)
When a new spending opportunity presents itself, get in the habit asking yourself: “Is it more important that I spend this $100 on my business or would this $100 be better off in my pocket?”
3.) Examine Your Marketing and Selling Strategy
Often when I’m looking at a business’s finances I learn that there is absolutely nothing wrong with their financial strategy. The problem doesn’t lie in their money decisions, but in a weak marketing strategy. This is where you need to go from beginning to end of the process. Examine every step from beginning to end. How are people learning (or not learning) about you? How are you promoting your business? Are you actively networking? Advertising? Getting press? Is your website up to snuff? What is your sales process like? Are you considering your brand in your sale? Or – are you just talking about services? Are you creating a connection with the client? Are you short-selling yourself? Are you underselling yourself? Are you not listening for true needs?
Like I said – making money is a strategy that has many layers. But, beginning with these 3 things will help you shift your business. I guarantee you’ll see more profits over time!
What do you think? What’s been helpful in creating more profit in your business? Share in a comment below!
If you are looking for better ways to create a strategy for the New Year, you can plan out your 2017 by downloading the world-famous Sage Wedding Pros’ Action Plan here. If you need more help with your financial strategy, sign up for Accounting 101 .
Michelle Loretta is a consultant for wedding and event professionals and founder of Sage Wedding Pros. She blends her past as an accountant for Deloitte, a sales and marketing manager for DDLA, a merchandiser for Coach, and a stationery entrepreneur to help entrepreneurs better their businesses. Sage Wedding Pros produce The Simple Plan Workshop, The People Plan Workshop, and Be Sage Conference. Michelle has been asked to speak at NACE Experience, ALT Summit, ABC, NAWP Conference, Biz Bash Live, and a number of other seminars and workshops.