Category Archives for "Financial Tips"

Pricing objectives: Be strategic in your pricing

Pricing is complex and not always what we expect. Today, we talk about how to recognize your company in the market place so your pricing matches your objectives, including survival pricing and profit pricing.

Get in touch with us if your company could profit from a business finance strategy session.

https://www.meragerfinancialsolutions.com/free-consultation/
ClientServices@MeragerFinancialSolutions.com
(720) 300-6735

Pricing sensitivity: Shared-cost, Fairness Effect, Framing Effect

Your pricing may be losing you customers and revenue. Did you know that you can raise your prices to attract more sales? This is part four of a multi-part series to increase your sales an bring you more money and better perceptions by your clients.

Get in touch with us if your company could profit from a business finance strategy session.

https://www.meragerfinancialsolutions.com/free-consultation/
ClientServices@MeragerFinancialSolutions.com
(720) 300-6735

Use pricing strategies to increase sales!

Are the prices slowing down your sales? This is very often the case. Join us today for a discussion about two ways that you can improve your pricing to attract more buyers.

Get in touch with us if your company could profit from a business finance strategy session.

https://www.meragerfinancialsolutions.com/free-consultation/
ClientServices@MeragerFinancialSolutions.com
(720) 300-6735

Pricing: First two ways to look at pricing

Your customers have known sensitivities to prices and you can lead them to perceive your price as highly attractive. These are the first two of these very important sensitivities.

Get in touch with us if your company could profit from a business finance strategy session.

https://www.meragerfinancialsolutions.com/free-consultation/
ClientServices@MeragerFinancialSolutions.com
(720) 300-6735

Pricing: Let your customer feel good about their purchase

It's important that your customer feel good about a purchase, both before the transaction and afterwards. As business owners, we have the powerful ability to create this for our customers so that they can fully enjoy their purchase.

Get in touch with us if your company could profit from a business finance strategy session.

https://www.meragerfinancialsolutions.com/free-consultation/
ClientServices@MeragerFinancialSolutions.com
(720) 300-6735

Pricing: Intro to complexity and opportunities

This is our introduction to the theories and science of pricing, where you may find that having the wrong price is costing your company lots of revenue opportunities.

We show that pricing is one of the most important decisions your company can make to lead your customer to purchase your product or services. It can create market leadership and reveal previously unseen opportunities.

Get in touch with us if your company could profit from a business finance strategy session.

https://www.meragerfinancialsolutions.com/free-consultation/
ClientServices@MeragerFinancialSolutions.com
(720) 300-6735

Ask your clients for referrals

Your company already has a client base that's happy with your work, right?

Once you've completed a project, call your client and ask them how you did. The bliss of a beautifully-completed project is the perfect time for your client and your company to brainstorm for further projects.

Get in touch with us if your company could profit from a similar business finance strategy session.

https://www.meragerfinancialsolutions.com/free-consultation/
ClientServices@MeragerFinancialSolutions.com
(720) 300-6735

Business success, even with aged invoices

Your business can improve with a solid system in place to track old, unpaid invoices.

Get in touch with us if your company could profit from a business finance strategy session.

https://www.meragerfinancialsolutions.com/free-consultation/
ClientServices@MeragerFinancialSolutions.com
(720) 300-6735

Top Five Tips to Win at Business

Here are the top five ways to make your business successful in the long-term:

  • Work with clients that you choose
  • Don’t hide from the world
  • Adjust your course when necessary
  • Be in business to serve, not make money
  • Embrace the lessons – don’t be discouraged

Get in touch with us if your company could profit from a free business strategy session.

https://www.meragerfinancialsolutions.com/free-consultation/

ClientServices@MeragerFinancialSolutions.com

 (720) 300-6735

Creating a business budget

business budget

“What’s important isn’t how much money you make, it’s how much you keep!”

You Need A Budget.

When you create a business budget, and use it effectively, you get rid of the chaos of not knowing how your business is doing from month to month.

You're able to go into End-Of-Month knowing that you can pay your bills.

You're able to create more focus in your business, and gain answers to mission-critical questions like "am I spending my time on the most profitable items?”

And perhaps most importantly, when tax time rolls around, you can keep the wolves away from your door by having your books in order.

What exactly is a small business budget? 

A business budget estimates both your revenue and expenses for a particular period of time, by using either your past efforts as a guide or your own knowledge of your company and industry.

Once you have a budget, you’ll quickly see how easy it is to adjust and maintain.

Why spend time creating a budget?

You want to make more money and spend less time doing it!

You will quickly find out how to wisely spend your efforts on things like operations and marketing, while working more productively.

You will also see where your business is leaking money, such as not being paid by clients on time, or if holding on to certain products that don’t sell is tying up your liquidity.

You may also find that one of your products brings in far more profit than others, letting you focus your efforts on that product.

Also, don’t forget that if you are looking to secure financing, your bank will want to examine your budget before they agree to give you a loan.

What is included in a business budget? 

Your budget will typically be a period of one year and broken-down by month and the best practice is to use your past income and expenses as a guide to a future year’s budget. Your expenses can be divided into the following categories:

Fixed costs are expenses that don’t change based on your success and include rent, leased furniture, and insurance.
Variable costs will change based on your success and include the cost of raw materials you need to make products, inventory, and freight.
Semi-variable costs are expenses that may changed by your success, such as salaries and marketing.

Basics of creating a budget

  • Collect all of your income and expenses for up to three years.
  • Enter that data into either a spreadsheet or a small-business accounting system such as QuickBooks Online.
  • Take a look at your sales and expenses and create a set of categories.
  • Common income categories: Sales, commissions, retainer
  • Common expense categories: Supplies, telecommunication, marketingCategorize each sales and expense entry using your newly-developed system
  • Create analysis reports
  • Common reports are: Cash-Flow for a real-time view of your cash, Budget to Actual to see how your business is doing against your plan, and even a long-term projection of your financial success.
  • These typical reports can be developed in MS Excel, or part of an accounting program such as QuickBooks
  • Once you begin using your management reports, you will likely want to change the category of some transactions to more accurately reflect your business goals.
  • Put your budget into motion!
QuickBooks can help you creating your business budget

Using an online system such as QuickBooks Online (QBO), you can receive free, daily management reports that include an analysis of your budget performance, so you can simply open the report and have the insight to make smart changes to your business or your budget. Changes to your account are simple and easy to access.

One of the very powerful benefits of QBO is that the system automatically downloads your bank transactions every day, so everything is always up-to-date. There are simple business practices using QBO that make it easier to pay vendors, create invoices, pay your employees and so much more.

You may also find income and expenses that haven’t been part of the planning process, such as interest income, seasonal changes in workload or travel expenses. Again, these can be easily added in your QBO financial system.

One of the most important advantages of having a budget is seeing where money is leaking out of your business. You may find better deals on internet services or office supplies, or find a less expensive business card vendor.

BOTTOM LINE?

Creating a business budget for your company will bring many benefits, but the bottom line is that it will help you make your company more successful.

You will be able to focus on your most profitable products, and make strategic decisions to allocate your resources that help you make more money from your efforts.

It will give you a deeper understanding of your business, giving you more confidence and peace of mind.

And most importantly, it will allow you to steer your company from a place of solid understanding, instead of "best guess".

FREE BUDGET REVIEW

Find your own peace of mind knowing your business budget is rock solid and moving your business forward.  Schedule a FREE budget review today!