How to make this year your most profitable year yet

Want to know how to make this year your most profitable yet? Maybe you want to increase profit so you can pay yourself more dividends, you are looking to increase business reserves or another reason. Regardless of why you want to make more profit this year, this blog post will help you. Keep on reading to find out how to make this year your most profitable year yet.

 

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HOW TO MAKE THIS YEAR YOUR MOST PROFITABLE YEAR YET

 

1. Identify what has been your most profitable year yet

 

This might seem like an obvious place to start, but to make this year your most profitable year yet you need to know what has been your most profitable yet so far. Hopefully, you’ll be easily able to pull up the information of how much profit you’ve made in previous year.

 

Often where business owners get stuck is profit for the last financial year. There can often be a time gap between the financial year ending and accounts being done so the business owner actually knows what their profit was. This can be problematic if you expect your last financial year to be your most profitable to date.

 

2. Set your profit goal for the year

Once you know what your most profitable year so far has been you can set yourself a goal for this year – the year you want to make your most profitable year yet.

 

There are no rules when it comes to setting your profit target. It all depends on how ambitious you are. It might be that you have a specific profit level you are trying to make. For example, if there is a specific amount you want to pay yourself in dividends or an amount of reserves you want in the business then that might influence the goal you set.

 

3. Do some financial forecasting around income and expenditure

Whilst having a clear profit goal is great in order to achieve that goal you’ll need to do some financial forecasting around your income and expenditure to understand what needs to happen. In a business, there are two types of expenditure – fixed and variable. If your business predominately runs off fixed costs then calculating the necessary income levels required in order to hit your profit goals will be easy. If you have variable costs then it will take some more detailed planning.

 

The point of doing the forecasting is to get to a point where you have an understanding of the level of income you’d need, and the amount of expenditure that can occur, in order to hit your profit goal.

 

WANT TO INCREASE YOUR BUSINESS’ PROFIT IN 2025?   A 2025 Strategy Day will help you to do just that! I have a tried-and-tested planning process that I’ve used for years that ensures that in just one day I can help business owners to create a plan to increase income and profit over the year ahead.  All you have to do is fill in a questionnaire beforehand and then turn up on the day. I’ll then lead you through the whole process and write everything down – making it super easy for you! For more information and to book a 2025 Strategy Day click here.

 

4. Review, and maybe refine, your offer suite and pricing

Whilst doing the financial forecasting you might have realised that achieving it isn’t possible with your current offer suite and pricing to make this year your most profitable year yet. If you find yourself in this situation don’t panic. Instead, you need to look at your offer suite and pricing.

Different offers will offer different potential gross income, take up different amounts of time, and have different profit levels. Review each of your offers in turn looking both at the offer and the pricing. Changes can be made to what is included in an offer, as well as the pricing. As making those changes be sure that you reflect those changes in your financial forecasting and see if it makes enough of a difference.

If after reviewing and refining your offer suite and pricing it might be that your profit goal for the year still isn’t possible. At that point, you’ll need to either change your profit goal or making a significant change in your business. This could be hiring someone else so you can physically take on more work or adding in a new offer (usually a scalable offer). You can find out more about how to choose the right scalable offer for your business here. 

5. Set your sales targets

Once you have got to the point where you have refined your offer suite and pricing to a point where your profit goal is possible (on paper) it’s time to set clear sales targets. Going back to your financial forecasting you should have a clear income goal and then have that broken down into sales targets. These sales target should be broken down by offer and then either by month or quarter, whatever feels best to you.

By getting very specific about how many sales you need to make of each offer you’ll be putting yourself in a strong position to create an appropriate marketing strategy.

 

6. Create your marketing strategy 

Now you’ve got your sales targets it’s time to create your marketing strategy. Look at your sales from previous year and then compare that to what you are trying to achieve in this year. It could be that you are trying to increase by sales by 25%, 250% or somewhere inbetween. Knowing the scale of growth from a sales perspective will help you to judge what changes need to be made in your marketing. For example if you are aiming to increase sales by 250% then you are going to need on drastically increasing your business’ visibility. Whereas for an increase of 25% it could be that you focus on improving your conversion rate and look for ways to increase repeat purchases.

Your marketing strategy should identify the marketing channels you plan to use per offer and how each channel will be used within the buyer journey. Understanding how you plan to sell all of your offers is key. There is no point spending the time refining your offer suite, but then not ensuring that you are making everything within your offer suite.

 

WHEN YOU BOOK A 2025 STRATEGY DAY YOU’LL HAVE COMPLETE CONFIDENCE IN YOUR OFFER SUITE AND PRICING – AND THE MARKETING STRATEGY TO ENSURE YOU HIT YOUR SALES TARGETS. Review your services, finalising your new offer suite and ensuring the pricing is all correct are all part of the 2025 Strategy Day planning process.  But on top of that you’ll then have the marketing and sales strategy so you can sell everything in your revised offer suite so those profit goals become a reality. For more information and to book a 2025 Strategy Day click here.

 

7. Monitor your progress

In order to make this year your most profitable year yet you’ll need to monitor your progress. As I mentioned at the beginning very often a business owner will only how a business has performed once the year is over. If your aim is to make this year your most profitable year yet then you’ll want to monitor your progress within the year so you know whether your are ahead, behind or on track.

 

In a worst-case scenario you should be quarterly reviewing income, expenditure and profit – and comparing to your financial forecasting.

 

If you do find yourself behind look at what needs to change from a marketing perspective (to generate more sales and income) or whether any expenditure can be reduced.

 

That’s it. You now know how to make this year your most profitable year yet.

 

Increasing profit in your business is good for numerous reasons and if you’ve decided that you want to make this year your most profitable year yet I have no doubt by following these steps you can make it a reality.

 

Let me know in the comments what your biggest takeaway has been.

 

 

If you are serious about increasing your profit in 2025 then a 2025 Strategy Day would be perfect for you. 

A 2025 Strategy Day is a one-to-one annual planning experience. I’ll take you through my 5-step planning process and by the end of the day working together you’ll have your plan for 2025.

As you’ve seen increasing your profit requires consider a number of different aspects, but this is what I’ve done for year. And I now have a process that means rather than spending weeks you can get ready in just one day.

For all the information, and to instantly book, a 2025 Strategy Day click here.