Thinking of starting a business, but not sure you know how to make it profitable?
First things first, you have to price your product or service correctly.
Learn how to make money from your own small business in this short video, where Gareth Cotten, Head Tutor for the University of Cape Town Start and Manage a Small Business online short course, explains the concept of pricing for profit.
The important thing to keep in mind when wanting to make real money from a small business is pricing your product or your service correctly. So you have to price for profit. This basically means that if it’s a service that you are going to be performing yourself, you can’t just be compensating yourself for your time. Remember that you need to charge what you need for your time but you also need to be adding your profit margin on to that. So make sure that there is always going to be sufficient profit in whatever you do. If you are selling a product, make sure that you are selling it for a substantial amount more than what it cost you to make or buy in or if you are providing a service make sure that you charge for your time but also a profit aspect on to what you are charging. By doing that you can make sure that you are actually making money and making profit out of your business.