A general rule in your financial success in business is that you cannot increase profits directly, only indirectly. You cannot just say that you are going to increase profits of your business without some specific strategy.
The only thing that you can do to increase profits is to improve the variables that ultimately determine your level of profitability. When you improve these 8 variables about your business you will increase profits and affect your bottom line.
Once you have systems in place for tracking things like time, expenses and earnings, you need to keep an eye on those things regularly. Analyzing any changes can help you determine what’s working for your business and what isn’t.
The size of the sale and the profit that you earn from each. You should be continually looking for ways to up-sell each customer so that he or she buys more each time.
Another potential roadblock is a difficult buying process. If customers have to jump through 10 different hoops in order to complete a purchase, they’re more likely to go with a competitor instead.
The customers who come to you as the result of referrals from your satisfied customers. Developing one or more proven referral systems for your business can have an inordinate impact on your sales and your business will make more money.
You might not be able to prevent all waste and theft in your business, but that doesn’t mean you shouldn’t try. Put systems in place to detect and alert you of any issues or abnormalities so you can address them as quickly as possible.
For service businesses, a major source of waste can be showing up for service calls if the customer isn’t actually there. So for this reason, it’s a good idea to quickly confirm before wasting time driving and doing the administration work involved for each call. Pillar even suggests automating this part of the process.
The amount that you have to pay to acquire each paying customer. You should be continually seeking creative ways to improve your advertising and promotion so that it costs you less to buy each customer. This can impact and increase profits of your business dramatically.
For everything from marketing to suppliers, it’s a good idea to constantly track performance and re-evaluate what costs are really worth it for your business. Then cut the rest out.
By Dr Muhammad Shakeel awaisi https://www.awaisimd.com/index.php
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