There are numerous ways of saving money in business. Doing so can lead to more profits in the long run. But what about ways of actively increasing profitability? The profit equation is simple. Sale – expenses = profit. But how do you make this profit even larger? Read on for a handful of suggestions.
Reintroduce yourself to inactive customers
Your customer database will be filled with at least two groups of people. Those who are active customers and those who are inactive. For the latter, this is people who have been customers previously but not recently. Reactivate your lines of communication with these people. There was obviously a time when they thought your business was worthy of their custom. There is a good chance you can refresh this relationship now. Send them a personalised email, or even write to them in the traditional format. You might be surprised just how effective putting your business back into their mind will be. Why does this work? Because quite simply, more customers means more profit.
Embrace technological advancements
Don’t get left behind by technology. It won’t do you any favours. Advancements are happening and it is truly in your best interests not just get to accept them, but to embrace them. Interacting with your customers and potential customers needs to be done in the spaces that they are occupying. This includes both how they’re accessing these spaces, and what these spaces are. So, become present in their various devices. You could develop your own app that they download onto their phones; professional app developers can help with this. Similarly, create a presence on social media. This means Facebook and Twitter accounts. You could also create Instagram and Pinterest accounts if these suit your company too. There are numerous benefits to using apps and social media in your business, and increasing profits is just one of these.
Cull the ineffective in your workforce and elsewhere
Employing underachieving members of staff can cost more money that these individuals make. You need a workforce who are hardworking and effective. You also need staff who are positive influences on one another. For this reason, getting rid of people who make the day slower, more stressful or harder is a great idea. You can also increase profitability by taking the same approach to your partners and suppliers. Replace suppliers of this nature as soon as you can. Finally, take a look at your customers. Are there any who are losing you money, as opposed to making you money? If so, they have to go.
Analyse how effective your office hours are
Some businesses opt for business hours of 8:45 am to 5:15 pm. Doing so gets staff settled and ready for the day by 9 am. We all know that the first few minutes of the day are taken up by taking off coats, making cups of tea and saying hello. Similarly, at the end of the day, they won’t start winding down until after the 5 pm mark has been passed. Increasing the amount your staff work will trickle down to other areas. They will get more work done for clients and make more sales, for example. This then trickles down to areas like profit.