We’ve got to increase profit!! The rallying cry for many SME businesses. Have you ever found yourself contemplating what the secret to a greater profit is, yet unable to unlock what seems an unbreakable code?
It’s frustrating, right?
You’re driving a successful business and progressing forward, there is plenty of work, customers are happy and your team are delivering the goods, but the bank balance just doesn’t warm your heart.
Doesn’t seem fair, does it?
The truth is. It’s easier said than done to expand a successful business. Organisations irrespective of their sizes can face several challenges.
Are you thinking about how you can make your business profitable?
You really should be under the guidance of a proper growth strategy, one that has been structured and planned out. When there is no well-defined plan for profit growth, there is an increase in the risk of falling behind your current competitors and further risk from new ones.
So, if you are serious about expanding your business and ready to roll up your sleeves to take the next step, you are going to require the following:
- Strong determination
- Application for good growth strategies
- Good business practices
You cannot grow if you do not measure.
It is absolutely imperative to note that any effective profit growth strategy does not only include envisioning long-term success. There should be measurable steps put in place to attain growth and then you need to follow them.
You need to also remember that medium-and small-sized businesses are different in terms of their capacity for growth and size.
The management styles and organisational structures are different. At the same time, it has been observed that these businesses experience common problems and pains while developing.
What’s secret to increasing profit?
Well, we all know that there’s no one particular magical strategy to make a higher profit or to generate cash. Instead, there are a few simple things you can do to help your business build more profit.
Let’s take a closer look at areas that you can focus on.
The 3 simple strategies for managing profit growth
1. Customisation of customer engagement strategies
There is no single strategy for marketing or sales that will be applicable in all businesses. Because, they should be customised to fit your customers’ needs and products.
With the rise in popularity of various social media platforms, try to engage your target audience digitally via social media and your website. It will enable your prospects to learn and access your products easily. This is called creating awareness.
You could also contemplate the inclusion of interactive tools such as demonstrations and webinars to draw your customers, this will build on the growth through awareness and provide informative and educational value to your customers.
Alternatively, you can embrace a sales model or try cross-selling so that the volume of your returning customer is much greater.
2. Find out what is holding your business back
If you wish to make more profit, it is time to be more objective towards your entire business. Try to identify what is preventing or holding you back from earning those extra dollars? Is there a lack of proper leadership skills? Or, is your sales team facing a problem or following process? Does the process need to be reviewed? Have you faced enough time to create proper brand awareness and brand visibility?
So, to cut it short, it is important to first identify what is preventing that plan of yours to increase business profit. You can then deploy appropriate professional or personal tools required to tackle your obstacles.
3. Make sure you think with respect to the incremental growth of your business
Now is the time to think out of the box in terms of where you wish your business to be in long term. You need to have a proper business map in place, which enables you to have a steady business plan and incremental growth for increasing profit. So, Think of what can be done this week, this month, or even today to begin increasing your profit ratio.
You may also want to strongly consider getting in touch with a reputable business advisor. It can be priceless experience at this stage, their professional career has been committed to assisting innumerable other businesses to increase their profit with a scalable and sustainable plan.
You should never underestimate the value in seeking help for the answers you don’t have.
Ainsworth Accounting Solutions are here to help you with any of your business accounting needs and we’d be happy to speak with you. Simply contact us today to take the next step!