Let’s face it.
People start businesses for a variety of reasons.
You can follow your passion, make a difference, have independence, and go to work in your pj’s.
However, the goal of a business is primarily one thing.
MAKE. MORE. MONEY!
And more importantly, a profit.
In order to do that, you need good relationships.
Since Valentine’s Day is lurking around the corner (waiting to take all my profit), I thought it would be appropriate to look at relationships and profit.
There are three primary ways to make more of a profit, and it is more about relationships than it is accounting.
1. Lower expenses with great business relationships.
- Lease – Gotten to know your landlord? Good. If you are comfortable where you are, the landlord may be willing to offer you a lower rate to lock you in a lease over the next few years. Especially if you have developed a good relationship with them.
- Vendor discounts – Most vendors will offer a 1% – 5% discount for paying within a certain period of time. If you have gotten to know your vendor, they may do better than that.
- Insurance – Most business owners don’t really have a relationship with their insurance agent. You should review what is necessary in your policy, consider raising your premiums, and don’t be afraid to shop with an independent agent with whom you have established a relationship.
2. Get more business with relationship marketing.
- Partner with another business in a different industry that has similar customers and send each other referrals.
- Call existing clients and ask for more work or referrals.
- Offer to do any type of speech or seminar on a specific topic (not a sales pitch) for free.
- If you are networking and prospecting, do it several times a month. Not once in a while as you have time. Also, make it a point to identify other people you want to work with and give them a reason to want to work with you.
3. Sell old assets quickly to raise capital using existing relationships.
- Do you have an old piece of equipment just laying around, not generating revenue? Sell it to another business that you have gotten to know. And yes, you should check with your accountant before selling anything to check on the tax implicaitons.
