Fiscal cliff? What does that mean to you? No matter what happens taxes will be going up. So more of your net income will go to taxes. What can you do?
- Analyze your expenses. I suspect there is not much left there to cut but can’t hurt to make sure. One client is considering buy some land to grow their own hay.
- Increase rates. A consistent 3% – 5% increase each year is preferable to suddenly having to increase rates significantly one year. Your clients will not remember that you kept rates the same for the past three years. It is a much more difficult conversation to have while a 3% increase is smaller enough that people can understand why. A nice letter explaining increasing costs is also a good way to ease the change to your customers. If you increase rates 3% for three years, that would be over a 10% increase!
- Market! Bring more money in is still the greatest challenge. Review what has worked and not worked this past year. Develop a written plan for 2013. How much more $$ a month would make you life easier? We would be happy to work with you to identify cost-effective marketing strageties for your facility.
One of our clients reduced to her expenses by putting her broodmares in leases, sold some babies and started marketing her stallion to generate income. All worked so well that she is turning a profit now!
Want to make 2013 your most successful year yet!! Give us a call to see how our team can help you.