Numbers can tell us a lot about ourselves. For example, your doctor will give you numbers that assess your health — blood pressure, heart rate, blood sugar, etc. In much the same way, we can also assess the health of our businesses — profit margins, net profits, overhead, assets, liability and so on. In fact, given enough data, I think you’d see a strong relationship between the numbers representing your personal health and those of your business!
I’ve noticed another strong relationship between your profit margins and the amount of money you take home from your business. Let’s examine the interaction between your prices and profits. I’m not about to suggest a blanket price increase as a simple way to increase your net profits. All of us are constrained by local marketplace pressures that put a limit on our prices. And some common services, such as drain stoppages in my market, have become so fiercely competitive that they are not likely targets for increases.