Tag: bottom-line

Increase Your Bottom Line Without Doing More Work

Revenue line shows an increase to bottom line.

Bottom line refers to the last line in your financial statements which is your net income after all the expenses you have been deducted from your gross sales or revenues.

How to increase your bottom line?

This has been the question of many, big and small business owners, and working people. Over the years, I’ve tried a lot of ways to grow my income without doing a lot and not exerting too much effort over it. And now, I will share to you what has worked with me and how it has helped me with my business.

1. Continuous Planning

You should always have a “plan B”. Which means that you should always be prepared if something goes wrong out from your strategies. For example, what will you do if your expenses increases than your income? It doesn’t mean that you’re being negative about it, but it means you already have a backup plan if things don’t work out. While many businesses have a definitive business plan, only a small percentage devote much effort to “What if something goes wrong?” planning. Because only a few are doing this. You should always have a backup plan, especially if you are just starting up your business.

2. Learn the Process of Business Negotiating

A lot of business owners doesn’t use this method, and I tell you, this is one of the effective ways to lessen your expenses. When you know well how to negotiate, you can use it effectively for almost everything! Say for example your business is about buying and selling goods, if you are able to negotiate, you can buy goods on a lesser price especially when you buy in bulk so you can get a wholesale price which will give you a big discount on the prices than buying them per piece. In that case, you could earn 30 to 50% when you sell them. And you can even negotiate to make them your permanent supplier if they give you that same less price every time you purchase. If you’d learn this process, you can apply it in your daily life!

3. Debt Management

In doing business, I would strongly recommend you to have less debt than getting more debt! This strategy is different from business negotiating because having a better debt management is more like a choice to be in debt or not. Unlike in negotiating, it is necessary for you to negotiate to get less or to make the situation in favor for you and your business. But if you think that your business really needs to take the debt then you can use it though I suggest that you try your best to reduce the debt.

4. Discuss Recurring Problems

It is no surprise that in business you could really encounter problems, not just financially but roughly through every corner of your business especially when you are just starting out. Even though you have everything planned out or you already have a business plan and you already envision how the business would run, there’s no denying that you could encounter problems along the way. So it is really important to write down and discuss the problems that you encounter because this will give you the chance to focus more on the things that you need to change or the things that you need to do to improve your business. Having these problems listed will already give you an idea where you made a mistake or what will you do to refrain the problem from coming back the next time.

All problems become smaller if you don’t dodge them but confront them. Touch a thistle timidly, and it pricks you; grasp it boldly, and its spines crumble.

— Admiral William F. Halsey

5. Practice Business Writing

Just like business negotiating, business writing is essential to grow your business and increase your bottom line. Business writing is an example of a strategy that can help organizations in multiple areas such as business development, communication, and inbound marketing to name just three. Although business writing is being neglected by most companies and organizations today in the interest of saving money. But there are a lot of ways now to do this, you can actually make use of the internet, writing a guest blog post can be used as a form of business writing if you only practice how to do it genuinely. You can submit these business writings to some website who accepts press releases, especially for those new businesses.

You might be able to spend a few bucks but it might help triple your business income as well! So what’s a little risk if it could help grow your business and increase your potential income?

Overall, in my experiences, when you are doing business you should be prepared to take chances and take a risk. You should be able to do a lot of trial and error to be able to succeed in the line that you are in. I’m telling you, I’ve failed a lot of times but if I gave up during those failures, I might not be able to get to where I am now.

Defining Top-Line and Bottom-Line For Your Business Growth

Computer with line graph

On Wall Street, financial investors speak of CEOs improving their companies’ “top line” by increasing sales volume. Their “bottom line” by reducing their expenses to expand the margins from their current sales volume.

For Internet companies a similar “top line – bottom line” approach should be taken by business owners determining where to direct their improvement efforts.

 

Defining Top-Line versus Bottom-Line Business Growth

An Internet business improves their “top line” by increasing the number of unique visitors to their website or their “bottom line” by increasing their “visitor-to-sale” or “visitor-to-lead” conversion rates.

Let me illustrate.

After an online business establishes their performance metrics, it can predict with confidence the expected results from their visitor traffic. For example, a business’ performance metrics may show that for every 1,000 visitors received, 15 sales are complete – a sales conversion rate of 1.5%.

With this understanding, the business can increase its “top line” growth by driving more visitors to its website. For example, if the industry invests money in traffic generation efforts to improve their visitor traffic from 1,000 to 10,000, 150 sales will be achieved from the 1.5% sales conversion rate – a ten times growth rate.

 

Top-Line Improvements Focuses on Traffic Generation

What are “traffic generation efforts”?

In brief, traffic generation efforts are ways a business attracts visitors to their website. They may include online initiatives such as search engine optimization, pay-per-click search engines, affiliate marketing, email campaigns, and media or offline ones like direct mail, television, radio, and public relations.

On the other hand, the business may decide to spend their money on improving their “bottom line” by concentrating efforts on website conversion strategies.

For example, if the high business invests money in website conversion strategies to increase their sales conversion rate from 1.5% to 2%, then for the same 1,000 visitors, sales will increase from 15 to 20 – a 25% increase.

 

Bottom-Line Increases Focus on Website Conversion Strategies

So what are website conversion strategies?

Website conversion strategies are website design changes that connect with your visitor’s wants and persuades them to take action to achieve your goals as well as theirs. There are endless strategies to increase your bottom line to establish your business growth although some have greater significance than others.

Depending on your type of online business, different strategies may achieve more significant results for your website and offer greater relevancy for your visitors.

If you manage a consumer or business product website than website conversion strategies that focus on reducing shopping cart abandonment may provide the most significant conversion improvement. Meanwhile, a service business’ lead generation website will find improvement from website conversion strategies focuses on “contact us” form completion.

 

Implement These Website Conversion Strategies

There are website conversion strategies that will improve conversion rates for all online businesses regardless of their objectives. These strategies include improvements to:

Website’s sales copy including writing headlines and sub-heads with stronger visitor appeal, defining stronger calls-to-action, using more visitor-relevant and benefit-oriented words and positioning popular visitor keywords in prominent areas connect with visitors and persuade action.

  • The graphics and layout design to generate visual relevancy and message consistency for your visitors.
  • It guarantees, returns, shipping, privacy, customer support and security policies you present to gain confidence and trust from your visitors.
  • Navigational structures to make it more comfortable and more convenient for your visitors to locate the products and services they desire to purchase.
  • Buying or contact options to increase how a visitor can buy or receive contact from you including alternatives to a shopping cart or online forms like phone, mail, fax, online chat, and email.
 

How to Decide Between Top-Line or Bottom-Line Improvements

Your decision to pursue “top-line” or “bottom-line” improvements should be evaluated by:

  1. The objectives you plan to achieve.
  2. The amount of money you have to spend,
  3. The timeline established to meet your goals,
  4. The amount of visitor traffic, your website, currently receives and
  5. The conversion rate your site achieves presently for your calls-to-action.

Establishing a plan before you make any decisions is critical. As the old joke goes, “I’m making progress climbing the ladder of success–I just don’t know if it’s leaning against the right wall.”

The plan should include measurable goals based on your current perfomance metrics.

Knowing your budget is essential in the selection process. Why, because specific conversion enhancement strategies can implement for a small investment of your time and effort. While traffic generation efforts may require greater investments of time, energy or both, figuring your budget enables you also to forecast the potential return you may receive from improving your top-line versus your bottom-line. The areas that provide the biggest bang for your buck are the ones to start one first.

Identifying your current visitor traffic volume and conversion rates, especially for new Internet businesses, is also very important when determining top-line or bottom-line improvement. If you currently have low visitor traffic, then you will have difficulty in deciding if a conversion enhancement strategy had a real effect on improving your conversion rates.

Improve Your Bottom-line

For example, if your website receives 100 visitors a month, it will take you at least a month or two before any real, measurable changes occur to your conversion rates.

In this case, you would be better off focusing on top-line (traffic generation efforts) first and then returning to bottom-line improvements for increasing your conversion rates.