Here are seven ways to keep busy and profitable throughout 2025.
1. If your financial statements are not accurate – resolve to get them accurate.
Garbage in equals garbage out. I’ve made it easy to review accurate financial statements www.financiallyfit.business
2. Grow your profitable recurring revenue program.
These customers trust you and will use your company in good times and bad times. They provide stability, less seasonality, and more consistent cash flow.
3. Ask your employees how to save $100 per month.
If you ask an employee how to save $10,000 per year, they can’t grasp that large amount. However, if you ask them to identify with a number they can relate to, ie $100 per month, they can probably come up with an idea or two. Implement the ideas and give them a $100 bonus for coming up with that idea.
4. If you generate revenue through billable hours, calculate your company’s billable hours percentage. If you generate revenue through memberships, meals, or some other way, calculate the net profit per unit of revenue.
If you don’t like the percentage, resolve to increase it in 2025.
5. Calculate your company’s net profit per unit or hour.
If you don’t like the number, resolve to increase it in 2025.
For example, net profit per hour is calculated on billable hours or revenue producing hours. Divide 2024 net operating profit by the total number of billable or revenue producing hours.
If you lost money in 2024 you paid your customers to do their work. Not exactly what you want to plan for 2025.
6. Watch overtime hours.
Overtime is expensive. This might seem like a ludicrous statement give what I’ve just talked about with respect to billable hours percentage.
Overtime should be at a minimum – and to many of your employees overtime is punishment…they don’t want it.
What about the office personnel? Are they consistently getting one to two hours per week or more overtime – in busy times and slow times? If you pay an office person $16 per hour, the overtime is $8 per hour or $416 per year. Then you must add payroll taxes and worker’s comp to this cost which is about 15% so the real cost comes to $478.40.
That doesn’t seem like a lot until you calculate the revenues you need to generate to pay that one hour of overtime. Let’s assume that you want to generate a 10% net operating profit. The revenue you have to generate to cover that one hour of overtime is $4,784!
Overtime is expensive!
7. Save money.
At a minimum save 1% of every dollar that comes in the door.
This is advice I’ve given for a long time. Frequently I get emails or phone calls from business owners who say thank you for this idea. They have hundreds of thousands of dollars in interest bearing accounts. They have the money to pay for trucks, computers, equipment, and other assets that, in the past, required bank loans. The revenues in the bank give you a sense of security that if cash flow gets tight, you have the ability to survive.
Implementing these seven ideas in 2025 will help you stay busy and increase your bottom line.
Want a free review of your financial statement?
Every business, large and small, can benefit from taking a closer look at its numbers. We’re happy to do a quick review – showing you what appears to be good and some areas you might want to pay attention to. (This is where Financially Fit Business can help too). Click here for more information.
And, pass along this offer to your business friends and colleagues who could benefit from this review too!
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