How to increase profit as a small business

Every business owner wants to increase their profits.

But in the day-to-day whirlwind of running an SME - managing staff, chasing customers, dealing with suppliers - it’s surprisingly easy to lose sight of the things that actually improve your bottom line.

The good news? You don’t need a dramatic overhaul to make your business more profitable. A series of smart, considered adjustments can add up to something significant.

Let’s walk through the areas worth focusing on when thinking about how to increase profit.

Review your costs

It sounds obvious, but many businesses are quietly losing money due to costs that have accumulated over time and haven’t been reviewed, meaning you could be paying for things you no longer need, such as:

• Subscriptions that nobody uses

• Suppliers who haven’t been renegotiated in years

• Overhead costs that no longer make sense

What you can do

Go through your costs one by one.

Ask a simple question: is this essential, and is it genuinely adding value?

If not, it may be something you can reduce or remove.

Doing this regularly, not just when things are difficult, is what separates well-run businesses from those constantly struggling with how to increase profit.

Focus on what will actually make your business more profitable

Not all revenue is equal. Some products, services, or customers are far more profitable than others; some work will make you good money, and some won’t.

What to look at

• Which services make the most profit

• Which customers are most valuable

• Which areas take time but don’t deliver strong returns

You may find that a small portion of your work generates most of your profit.

If that’s the case, the goal is simple: do more of what is going to make your business more profitable, and less of what isn’t.

What you might need to do

• Stop certain services

• Reduce work with difficult or low-value clients

• Focus sales on your most profitable offerings

It’s not always easy, but it’s a key part of how to increase profit.

How to increase profit while growing sales

Sales growth is exciting, but more revenue doesn’t always make your business more profitable. Ask yourself, is this new business actually profitable, or are we just getting busier?

Some of the best opportunities are with your existing customers. They already trust you, so it’s easier and cheaper to sell to them.

Simple ways to increase sales

• Offering additional services (upselling)

• Recommending related products (cross-selling)

This approach is practical and can help make your business more profitable without increasing your workload too much.

Consider your resources

Before hiring, assess how your current team is being used and ensure your people are spending their time on the right tasks.

Questions to ask

• Are skilled employees doing basic tasks?

• Is there duplicated work?

• Are manual processes taking too much time?

Technology can help reduce repetitive work and free up time for more valuable tasks.

For example:

• Automation tools

• The right software for your processes

• CRM (Customer Relationship Management) and integrated systems

The goal is to ensure the right people are doing the right work, ultimately helping to make your business more profitable.

Evaluate your strategy

When did you last review your business strategy? Do you know what’s working and what isn't? Markets change, competitors evolve, and customer needs shift.

Questions to ask

• Is this still the right direction?

• What’s working well?

• What isn’t?

Reviewing your strategy regularly is an important component of how to increase profit.

Have you considered a price increase?

This is something many business owners avoid, but it is something worth facing head-on to ultimately make your business more profitable.

If your costs have gone up but your prices haven’t, you’ll inevitably earn less money.

Many customers will accept a reasonable price increase, especially if they value your service. Assess:

• Which customers are price-sensitive?

• Which customers value quality and service?

A small, well-planned price increase can be a significant step to make your business more profitable.

Bringing it all together

Improving profitability isn’t a single action; it’s a series of thoughtful decisions. Small improvements across different areas add up over time.

The challenge for most SME leaders is finding the time and clarity to make those decisions effectively.

This is where a fractional CFO can help.

A fractional CFO can provide a clear, real-time view of your finances and help you understand the key drivers behind how to make your business more profitable.

How a fractional CFO can help

• Identifying profitable activities

• Reviewing costs

• Planning price increases

• Aligning strategy with financial outcomes

All without the cost of a full-time hire. 

If you’re curious about how to increase profit, but you’re not sure where to start, a conversation costs nothing. Get in touch, and let’s explore how to make your business more profitable.