As mentioned a few weeks ago, profit provides opportunities for future growth and expansion. We previously featured the first 5 tips to help you increase your profitability – here’s a look at the remaining five:
- Increase referrals. Develop one or more proven referral systems for your business.
- Eliminate costly services and activities. Many businesses get into a routine of offering expensive services to their customers that they could easily discontinue with no loss of customer satisfaction.
- Budget religiously. Zero-based budgeting requires you to begin each year’s annual budget process by setting each category to zero. This approach allows you to see every dollar that goes into the business bank account and decide whether spending that dollar is necessary.
- Focus on your more profitable items. Identify your products or services with the highest gross profit margin and concentrate on achieving higher sales targets for them.
- Take action! Sometimes you have to make strategic decisions that are outside the prevailing wisdom. While many are cutting back on advertising and marketing, now might be the right time to increase your visibility!