Ways You Can Improve the Profitability of Your Business
Wednesday, July 29 2020
If you have recently become the brand-new owner of a business, it doesn’t matter what sector or type of company it is, there will always be things you can do better. After all, if the business had been perfect and high performance with huge profits, it is unlikely that the owner would have sold it to you in the first place. So, how do you turn around your business and make it a success? In the following post, that is what we are going to look at. Reduce Your Direct Costs By At Least 3% or More You should consider going to all the suppliers you use for your business and asking them for better prices. This is a great tactic to increase the amount of profit you make with every sale. If your suppliers are happy with the business they get from your company, they may, with a little nudge, offer you better prices. Increase Your Prices By At Least 3% or Even More Another easy way, like the above, to increase the amount of profit you make with every sale is to simply increase your prices. 3% is a good place to start because it is significant enough an increase to make a difference to your overheads, but not so big that it is likely to alienate regular customers or put off new ones. Reconsider The Way You Present Your Business You should start talking to existing customers about what they get when they buy from your company. Concentrate on the advantages they get from using your services or products. This will help you to improve the performance of your sales and provide them with something better. Get Rid of Any Staff, Customers or Suppliers That Are Underperforming It can be hard sometimes to let go of staff, customers and suppliers. Especially as you always think they might do better next time. However, there comes a time when you need to let people, whether its staff, customers or even suppliers go. Especially those who make your working day a lot harder. As well as establishing a much better and more productive working environment for you and your team, doing this will also help get rid of any customers that are actually losing your profits. Improve Your People Skills, Talking to Customers, Asking For Business and Closing Sales Get yourself and members of your team on a reputable and high-quality sales course, and you could add as much as 10% to each fundamental step in your sales funnel. It is thought that doing this could add around 46% more customers to your existing client base. Increase Your Leads by 10% At the Very Least Get out there and network. A good place to start, if you haven’t already, is to list your business in the paper for your local area. You also need to make use of the free Google My Business page that all businesses can have access to, Google AdWords and learn how to sell on social media and as much as you can about lower cost, but effective marketing. Start your working day earlier and basically talk to even more people than you already are to increase leads. Stop Your Customers From Leaving To do more to generate more business, you need to learn more about what your customers like and dislike. The best way to achieve this is by running a customer survey to talk to all your past and existing customers. You will find that more defectors are happy enough, but it just so happens that another business came along who was willing to do more than you to get their business.