September Roundup!

/

The scent of pumpkin spice wafts through the air as the days grow shorter, signaling the arrival of autumn. Hello, friends! As we bid farewell to summer and the third quarter, I hope you've made progress on your to-do list.

Running a business is undoubtedly challenging, but it's also incredibly rewarding. This month, I've shared insights on:

  • Managing Your Time Effectively

  • Achieving Financial Clarity

I hope you found these posts valuable for your entrepreneurial journey.

Pricing for Profitability: A Key to Business Success

As we transition into fall, let's discuss a crucial aspect of business: pricing for profitability. The term "profitability dating back to the 14th century, means "Something that produces or is likely to produce a profit." While this motivates most of us in business, are you truly pricing your services to ensure profitability?

If you're unsure, here are some tips to get you started:

  1. Calculate the real cost of running your business:
    • Review your profit and loss statement
    • Identify direct costs like subcontracted labor, project based travel & project-specific supplies.
    • Identify indirect costs like rent, utilities, subscriptions, general operational labor.
    • Understanding total costs helps prevent underpricing and protects profits

  2. Set a target profit margin:
    • Consider Business Mentor Luisa Zho's advice: "A service-based business should aim for profit margins of at least 50% right from the start."
    • Establish your own target profit margin by calculating monthly revenue target: (monthly costs + desired profit) ÷ gross profit margin percentage
    • Adjust pricing to meet your profit goals

  3. Choose a comfortable pricing strategy:
    • Select a pricing model that aligns with your business and personal preferences
    • Options include fixed pricing, value pricing, or hourly pricing

As we embrace the fall season, I encourage you to implement these tips to help achieve your business goals. Remember, strategic pricing is not just about covering costs—it's about building a sustainable and thriving business.

Here's to a prosperous autumn filled with growth and success!

Keep IT Sunny~