To increase profits, you must invest time and resources in your most profitable goods and services.

Discerning business owners absolutely know the profit margin on every product and service they sell. If you’re in the dark, get out your calculator.

Once you know which products and services generate the most the profit, focus your attention on activities that promote and sell those items.

But also look at your services and goods that generate less profit. These are drains on your energy and marketing dollars. Are there ways to turn those into bigger profit makers? Here are some questions to explore:

• Can you increase prices on those items so you derive more profit?

• Should you discontinue a less profitable line of products or services? The result may be that you have more time and resources to devote to your most profitable goods and services, or to developing new products and services.

• Are there ways to sell more of these services or goods in volume, thereby increasing your profits?

The lesson here is: Don’t fall in love with what you sell. Be flexible. Watch market trends and customer buying patterns. Consistently review your profit margins. And take action if margins start to shrink.