• Skip to main content
  • Skip to primary sidebar

Business Growth By Design

Design a business you can live with

  • Home
  • About Rich
  • Expertise & Experience
  • Services
    • Tax-Prep
    • Self Study Program
    • Foundations Program
    • Mastery Program
    • Inner Circle Program
  • Connect with Me
  • Videos
    • Presentation
    • Courses
    • Rich Tip Tuesday
  • Blog
  • (760) 579-0079
Menu
  • Home
  • About Rich
  • Expertise & Experience
  • Services
    • Tax-Prep
    • Self Study Program
    • Foundations Program
    • Mastery Program
    • Inner Circle Program
  • Connect with Me
  • Videos
    • Presentation
    • Courses
    • Rich Tip Tuesday
  • Blog
  • (760) 579-0079

Archives for July 24, 2019

Increasing Income is the Key to Building Wealth

July 24, 2019 by Rich Gaines Leave a Comment

In prior articles, you may have picked up that making money, keeping money and investing money are all needed to build wealth as well as consistent action with well defined goals and plans.

So what gives…how come this article is simply about increasing income? Why is it “the” key?

What’s the first thing that happens when times get a bit tougher? You reduce expenses, you lay off workers, you cut your lifestyle expenses. The problem is that you can only cut so much. There will always be expenses. You can’t cut your way to wealth. If this makes sense, then the only way to build wealth is to increase income?  Easy you say or in this case as I write.

Let’s look at an increasing income strategy and the one I like the most. Most business owners don’t understand the idea of a profit margin.

Your profit margin is the difference between the sales price of your product or service and your cost of providing that product or service. Yes, people providing services have a cost called time. If you sell a product or service for $100 and it costs you $80 you have a 20 dollar profit margin. From this 20 dollars you now have to pay your employees, pay the bills, and you are left with say $10 to feed your family. You might cut costs by $5 as I mentioned at the beginning and that will increase profit but once costs are cut there is nowhere else to hide. If business slows down more you have a real problem.

The simple answer:  Raise your prices and create more income.

It didn’t cost you anything to raise your prices. That’s pure profit to your bottom line. Some of you may be thinking that you can’t raise your prices. This is a mistake in thinking. You can raise your prices, you should raise your prices and you will see that not only will you have a greater confidence and belief in what you are doing but that your mindset will change and you will focus on the customers who will pay that price.

When you raise your prices you make more money.

When you make more money you can take that money (KEEP IT) and invest it, pay down debt, two strategies that will allow you to build wealth and who knows? Maybe even stop working early.

For more information on Growing your Business by Design, creating financial well-being and steps you can take to grow wealth please visit our website at www.businessgrowthbydesign.com.

For a free E-book- Business Strengtheners- Strategies to move from Survival to Stability and Affluence please go to www.businessgrowthbydesign.com/strong

Filed Under: Business, Income, Wealth

Primary Sidebar

Recent Posts

  • Year-End Tax Tips: Is Your Tax Tail Wagging The Dog?
  • Increasing Income is the Key to Building Wealth
  • Successful People Build Wealth Through Consistency

Archives

  • November 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • October 2018

Copyright © 2021 · Genesis Child on Genesis Framework · WordPress · Log in

CONNECT WITH US

  • (760) 579-0079
  • rich@businessgrowthbydesign.com
  • 5900 La Place Court, Suite 105
    Carlsbad, CA 92008
Facebook
Twitter
Linkedin

QUICK LINKS

  • Business Growth By Design Inner Circle Program
  • Business Growth By Design Mastery Program
  • Business Growth By Design Foundations Program
  • Business Growth By Design Self Study Program

QUICK LINKS

Copyright 2019. All Right Reserved, Rich Gaines

  • Privacy Policy
  • Terms and Condition
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.