High sales don’t always mean healthy profits. With rising costs, tougher competition and ever-changing markets, it’s easy for margins to shrink without you even noticing. The truth is, profitability isn’t just about selling more - it’s about keeping a close eye on the detail, managing costs and making informed decisions.
So, how can you make sure your business isn’t just surviving, but truly thriving?
1) Review your expenses regularly
The little things add up quickly. Unused software subscriptions, paying above market rate for supplies, or sticking with inefficient processes can quietly eat into your profit margins.
✅ Set time aside each quarter to review your outgoings.
✅ Ask yourself: Is this essential? Can I get a better deal?
✅ Compare your overheads to industry benchmarks in the UK.
Often, trimming the unnecessary makes just as much difference as chasing more sales.
2) Are you charging enough?
Many UK businesses haven’t updated their prices in years. Meanwhile, inflation, the National Minimum Wage increases and rising energy bills have tightened margins.
If your prices don’t reflect today’s costs, you could be working harder for less reward.
✅ Compare your pricing to similar businesses locally.
✅ Make sure your prices cover all your costs - including your time.
✅ Review your pricing structure at least once a year.
3) Know your market
Market research isn’t just for the big players. Understanding what competitors offer (and at what price) helps you position your business more effectively.
✅ Look at competitors’ websites, social media, and reviews.
✅ Identify your unique selling points (quality, speed, service, expertise).
✅ Use your strengths to justify premium pricing.
When you know what makes you different, you can focus on customers who truly value it.
4) Let the numbers guide you
Your profit and loss account shows whether you’re actually making a surplus after expenses, while your cash flow forecast helps you prepare for upcoming bills, VAT deadlines, and seasonal dips in trade. By staying close to the numbers, you can make smarter decisions - and avoid nasty surprises.
At Towers + Gornall, we work with UK businesses every day to track their numbers, review costs, and make confident, profitable decisions. Profitability doesn’t have to be complicated - but it does have to be managed.
