5 Steps to More Profits for Your Logo Design Business

If you run a logo design company, you not only need to have designing knowledge, but managerial skills as well. Here are some of the things you should concentrate on to earn more profits and expand your business.

1. Promote Your Company- What use is establishing a logo design business if the world doesn’t know you exist? You need to promote your company to get more business. However, before promoting your company, decide how you want to present yourself in the market. Would you like to be recalled as the “most affordable logo design company” or “the most unique and innovative logo design company” or “a costly but no compromise on quality logo design company”? Types of clients are varied and while some prefer cheap priced designs, others don’t bother spending millions for a high quality design.

If you are a startup company, have a clear and set goal in your mind. Don’t be impractical and think that you can be the number one graphic design company in the country in just 1 year. Set an achievable goal like “I want to be number 1 graphic design house in my city” and work strategically to achieve it. When you have a clear goal in your mind, your business grows and profits increase.

     2.Charge for the Whole Project- Some companies charge their clients by hour for a logo design project. That’s not very wise, because:

•  When you tell your client that you will charge him $75 for every hour, he considers you a costly logo designer. However, when you charge $500 for the whole design project, he thinks you are affordable. This is how clients work…when you tell clients you charge on hourly basis, they start multiplying and think that you will send them a huge bill. What they don’t realize is that you may actually spend just 5 hours on the total design project, and at $500, you are actually charging more than $75 per hour!
• You may work for just 5 hours and bill the client for 6 hours. Because the client can’t tap the number of hours you are working for, he is never too confident about the time his project has taken.

Hence, majority clients don’t agree to an hourly payment scheme.

     3. Identify Your Best Clients- You may have a total of 20 clients for whom you design logos, but out of those 20 clients, only 5 are big corporate houses who pay you handsomely and give you regular work. You need to identify your top paying clients and give extra effort in their designs. These 5 clients provide 80% of your total income and if you keep them satisfied, a regular income is ensured and the profit margin will never drop.

   4. Repeat Business Increases Profits- It’s easier to work with old clients than with new clients. The more work you do for your present clients, the better understanding and trust you build. This will lead to repeat business without spending too much on promotion.

Most logo designers are shy and think asking a client for reference is unprofessional. Nonsense! If you have a happy client, don’t hesitate to ask him for referrals. This way, you will save time and money on marketing and still get good business.

   5. Track Your Profits and Losses- You must keep an eye on your investments and profits, or, you will spend more than you earn and the company will run into loss.

Separate the essential expenses from the extra expenses. You can cancel that Thanksgiving party at your office and instead, invest in high-end computers that will be beneficial for your business.

When you work with a clear business strategy, possibilities for successes increase. All the best!