How Can You Grow Your Profit Margins?

When a buyer is looking to but your business the first thing they look at is your profit margins. So how can you attract a buyer by growing your business’ profit margins?

It’s business acquisition 101. If you want someone to buy your business, you have to show them how it can benefit them. This is why they look at the profit margins; they want to see how much money they’ll be able to make from the business they are buying and the best way to do so is to see how much it is already making.

Therefore before you even think about putting your business up for sale you need to make sure that your profit margins are suitably wide. If you need a little help getting there then follow these RTA Business tips on increasing your profit margins.

The first is to diversify the leads you have on your roster. Leads are the people who have been or who have contacted the business over the course of a year. You can’t conduct a business without contacts and the more contacts you have, the greater chance there will be to seize on an opportunity to expand your profit margins. Its why people network!

You also need to conduct some analysis. You need to identify where you are making and where you are losing money. What’s your strongest asset and what’s your weakest? Where do you have room to expand? Focus your efforts on your strongest areas to increase profitability.

Also take into account the current costs of your business. Where can you streamline and make your operations more efficient. It’s important to work with balance here. Only cut costs where it is appropriate, don’t cut corners.

Also examine you and your employees’ time management. There’s a saying that ‘time is money’ and it really is the case. Where are you spending your time in concerns to business operations? Think about how much time you need to allot to each area and where excess time may be more efficiently spent.


At RTA Business we’ve seen how profit margins affect the likelihood of a buyer’s intentions to carry through a business sale. Profit margins are essential because they show how said buyer can use your business to expand their own.