Making your business work for you: securing your lifestyle
Making your business a success story may be what drives you to get out of bed every morning. But your business also needs to deliver on your personal goals as well.
Profits, dividends and bonuses need to be stable enough to help you maintain your desired lifestyle, whether that’s two holidays a year, or paying the mortgage on a new family home.
In this series, we’ll look at the core ways your business can be structured to deliver on your own personal, family, philanthropic and leisure goals.
Delivering the income that fuels your chosen lifestyle
When you start a business, you make some fairly major decisions about your quality of life. Building a start-up could mean several months, or even years, of reduced income. But, ultimately, you’ll want an income from the business that helps you fund your chosen lifestyle.
Here are four key ways to make sure your business can secure your lifestyle:
Focus on high margins or high volume
Prioritise products/services that offer either high margins or high volumes of sales. Your key focus is to help the business provide stable, predictable revenue and profits. This will help you draw down the necessary income for your desired lifestyle.
Get strategic with your pricing
Adjust your pricing so you’re competitive but making some healthy margins. Value-based pricing and bundling helps to increase the value from each transaction. The more you do to boost the price of an average sale, the easier it will be to supply the income needed for your lifestyle.
Hang on to valued customers
You can quickly improve your customer loyalty stats by offering personalised services and programs. Retaining your existing customers is cheaper than acquiring new ones, so keep these customers sweet and enjoy consistent revenues that power your personal income.
Automate your most costly processes
Labour costs can quickly eat into your profits. Think about automating basic tasks and outsourcing non-core functions, so you’ve got more time for high-value revenue generation. Reducing your overheads can directly influence your own potential income as a director.
Creating a profitable, cash-rich enterprise is the dream. And if you can stabilise your sales, revenue and profitability, you increase your chances of a healthy income from the business.
Come and have a chat about working smarter, not harder.
