How to Make More Money

It's fantastic when you love what you do - it makes the work worthwhile! BUT - it's called "business" for a reason. You started your company to make MONEY. Sometimes we forget about that, or we put it to the side and assume it will take care of itself. But you have to pay close attention to your income, especially if you want it to GROW!! So here are my 4 top tips for making MORE money in your business!

1. Charge More

When was the last time you increased your fees? Most people are too nervous to raise their rates or to push the envelope on what they charge, but you HAVE to be not only competitive but also on the cutting edge of what's right for you and your company. If you're getting a very quick "yes" from clients, that's a sure sign that you aren't charging enough. Do a little research on what your market can take, but also do the math to decide if you're actually covering your expenses. Most people are NOT. And if you're charging hourly, then you need to charge for EVERY single hour! Don't fudge on this - you're not in business to do favors for people!! You need to be paid for the work you do.

2. Know Your Profit Margins

Whether you charge hourly or through a flat fee, you should also understand what your profit margins are. Profit margin is your net income divided by net sales or revenue. It's a great way to gauge if you're REALLY making money or not. You could have an income of millions, but if you're profit margin is at 5%, you are NOT actually profitable. You want that percentage to be as high as possible. The only way you can do that is to charge more, spend less, and be as efficient with your time as you can. But don't stop with your overall business margin! Calculate your profit margin for each of your services - consulting will definitely have the highest return. Then calculate your profit margin for each project when it's complete. That REALLY can be an eye opener and can give you some valuable lessons.

3. Add-On Services

Any time that you can add-on a service or a product, you make more money on that project. For example, I have worked with interior designers who are also accomplished artists. They've created bespoke art for their clients' homes, which not only gives the client exactly what they need, but also increases the money that designer makes on the project. Or a designer could offer a concierge service for vacation homes they design, to get them set up or closed down before and after a holiday season. Take things to that next step in EVERY project! And remember which services DO make you more money and be sure to market those as often as possible.

4. Client Retention

Do you know why loyalty programs were first started for retailers? It was to be SURE that repeat clients are honored and rewarded. And THAT is because customer retention always pays off. That means your customer service is worth a LOT of money, so be sure you're investing in it. And you also want to keep in touch with your former clients. Whether it's through notes at certain times through the year, gifts, newsletters, phone calls, or any other way, you HAVE to keep that relationship going. Most business is still through word-of-mouth, so a happy client is also going to bring in NEW business!

Use these ideas to help your business make as much money as possible!! And remember that it all starts with when you first meet with a client. That's when you explain your fees, set expectations, and begin the customer service program. With those goals in mind, sign up HERE to the encore LIVE and FREE masterclass 3 Insider Secrets to Running a Profitable & System-Driven Business on April 9, 12pm EST. Get any questions answered in the live Q & A!

Check out more design business tips and tricks

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How to Make More Money

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