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.