Profit is no joking matter
Mar 31, 2016
April Fools’ Day is here and whilst most people expect to have a joke played on them today, we are taking a more serious slant looking at business profits which are definitely no joking matter.
For any size business, profit is the key to success and although profit is mostly linked to sales and revenue, they are not the only methods of how your business can make a profit. Here are some examples:
â€¢ Cutting costs
Often business owners think cutting costs means cutting staff but actually that can only harm your productivity. Instead try thinking out of the box at other areas that could be costing you more money than they should. Do you still use a lot of paper in your business? Could you be using an electronic system instead? If you review your processes it then becomes easy to see wastage and most importantly cut it.
Businesses can still underestimate how important marketing is but the saying “You have to speculate to accumulate” is very true. Marketing your business not only increases brand awareness but also contributes to lead generation and pipeline. No matter what size of team you have you should look at promoting your company in some way even if it’s small but make sure you record any activity and money spent on marketing initiatives so that you can clearly see what channels have contributed to profit and what haven’t.
â€¢ Review your suppliers
Do you use a lot of suppliers? Do you review them? It’s so easy to stick to the same supplier but you could actually save a huge amount of money by renegotiating regularly. This doesn’t just mean suppliers for your stock, but your utilities as well – energy, insurance, telephone and internet. Our blog post last week focused on how much small businesses were spending on their energy and how switching can save money.
â€¢ Dust off your systems
How often do you think about the systems you use at work? This is a great way of reducing indirect costs and overheads. Are there better systems out there that could help you with your processes? Ask your employees for their opinions too and together you could save your business money.
Hopefully this provides some ideas on how you could generate profit for your business from the inside before you even look at sales.