Are you maximizing your business’ profits?
There may be many options to choose from that can help you improve profitability. Analyse your strengths, weaknesses and capabilities for ways to improve. Here are a few measures that can have a surprising impact on profitability.
1. Examine key performance measures: Falling sales, shrinking working capital, and rising costs are key indicators to monitor.
2. Manage your costs: more effective purchasing can improve margins. Eliminate waste of materials and time.
3. Review sales to long term customers: you may find out some customers are not as profitable as you thought.
4. Increase productivity: Staffs are the largest cost centre in most businesses. Increasing employee effectiveness can improve profits.
5. Review sales: ensure you are targeting the most profitable customers with the right product mix.
In most cases, a combination of these measures will give a boost to profitability. Incorporate these measures into your business plan and review frequently.
Be diligent and execute, execute, execute.