5 Things To Keep You From Ending the Year in the Black
Dec 2, 2014 5:57 PM
Home technology business owners have many issues pulling at their attention. These distractions can cause them to lose sight of one of the most important aspects of their venture: profitability. As we get closer to the end of the year, how are your financials looking? Do you even know?
It isn’t uncommon for profits to stall. If your business is facing plateaued profits or is losing money, take a look into these five issues that may be holding your company back.
1. You’re not bringing in new customers.
For home tech professionals, revenue is generated by meeting new people and attracting new clients. If profits aren’t increasing, it may be time to look into improving your marketing campaign and boosting referrals to reach new audiences. We recommend looking into CEDIA COI program, which allows you to present continuing education to architects, builders, and interior designers while forming relationships with them.
2. You don’t properly account for direct and indirect costs.
The issue with low profit may not be a lack of customers but rather incorrect calculations of your business’ costs. Owners who don’t accurately anticipate the cost of doing business won’t ever see the profits they expect. They’ll also run into the next issue…
3. You don’t price products and services correctly.
A common mistake for business owners is pricing products and services too low in an attempt to undercut the competition or because they haven’t properly accounted for the true cost of providing their products and services. Either way, to make a profit, owners need to price items with a healthy margin. Leslie Shiner of the Shiner Group put together a webinar and tools addressing Mark Up vs. Margin. If you’re not sure how to price things or think you’re getting tripped up, start here.
4. You don’t have a solid supply chain.
Revenue will go up when sales increase or costs decrease. If owners don’t have steady contacts within their supply chains, they won’t be able to take advantage of the best pricing.
5. You don’t keep up with the competition.
It’s essential for home tech professionals to stay on top of the latest technologies and best practices. Not being able to educate clients on what’s available or offer the latest trends in technology will cause you to lose business.
To learn more, visit the CEDIA Training resource library and course catalog at cedia.net. CEDIA members enjoy exclusive discounts. Not a member? Visit cedia.net/join to learn about all the benefits that could be helping your bottom line. Plus, mark your calendar for CEDIA’s Business Xchange. April 29-May 1, 2015 in Houston.