Every Business without a strategy is doomed to failure. That business awaits failure of a daily outcome. For one to be satisfied with his business, the business must meet up with some following criteria for success. Success is an achieved goal, that is, that positive outcome that displays after the formulated goal or target is achieved. Business profit strategies growth.
We cannot talk of success without including profits. Profit is what keeps a company going. It is what makes an entrepreneur to be encouraged for better results. As told in economics back then “profits are the rewards given to an entrepreneur.” Strategically I have set a couple of 17 points to good profit making success. As a business strategy specialist, you cannot undergo the steps of profit making if you do not meet the following requirements as shall be stated and well explained below. Business Profit Strategy for Business Growth.
Business Profit Strategies For Business Growth.
Eliminating tasks and activities that don’t add value;
To increase Profits in your business, strategically eliminate all tasks and activities that don’t add value to the company or customers. Every dollar/naira/euro/francs/yen/pounds you save by eliminating the costs of things that don’t add value to your company or to your customer drops directly to your bottom line.
This is the easiest answer to many small companies especially those who have been in business for a while. Most business set their prices when their business was first launched and since they were so hungry for business they set their prices lower. Over time the business likely only made nominal to pricing every few years but rarely did the owner ever sit down and fundamentally rethink his/her pricing models. If its been over a year, it’s time to look at it again.
Redesign workflows and systems.
Redesign your workflow and systems setting it up for greater efficiency. Cut steps, reorder processes, re-engineering physical work-spaces e.t.c.
Clarify your team.
Give your team a clearer picture on ways they can contribute to profitability. Every team member is an agent to increase profitability. Empower them to be part of this search for ways to increase profitability. Give them benefits for each profit method discovered.
Increase dollar value purchase.
As one of the business profit strategies for business growth, increase the dollar value of every purchase transaction with your clients. Think up-sell, gross-sell, resell…. Ask, ” How can I get each customer transaction to be for a larger dollar amount?”
Regularly review your Administrative and Operational staffs closely.
In Business Profit Strategies for Business growth, most services and administrative departments can be cut by 1 in 4 with no impact on quality of work. Many can handle 1:3 with no significant negative impact.
Look for ways to increase value to clients and customers.
This will help you shorten your sales cycle, increase your closing rates, lengthen your clients retention and perhaps, increase pricing.
Focus your best or most efforts/talents and attention on selling your most profitable products, services, niches or channels. Usually, the more you sell these class A goods the more you will generate profits.
Feed your winners, starve your losers.
This includes with your marketing activities, your sales force, your general staff, your company initiatives, your reporting e.t.c. So cut your losers and feed a portion of a saved time and money into your winners. This will greatly boos profitability reason being, the more you show love and value to your winners( those who work with you including clients), they will stick to you and will want to also render you their love in terms of purchase or services.
Strategically map out your clients.
In business profit strategies for business growth, strategically map out a pathway to upgrade your top level 10-20 percent of clients to “red carpet” or “highest value offering” Humans beings want to be known, their ego pushes them for recognition and fame. Please your top customers with this prestige so that you will not loose them. Give them special offers. They want this service. They will value this service and pay for the service.
Sell your Products or services in larger purchase sizes.
This could mean that rather than sell a 10 hour package of time, you will sell in 20 or 50 hour sizes. Think about this as selling a bigger box of your products or service.
Strategically map out systems that will help your customers consume your products or services faster.
This in the light that your products get more value and hence repurchase them more frequently. Look for ways to educate them on ideal use of your products or services.
Bundle your products.
Look for ways to bundle your products and or services so that you increase the average ticket price of every sale.
Make buying from you easy and simple.
Reduce barriers to entries. Reduce frustrations or hurdles to repurchase. Make buying of products, bundles, services from you easy.
Shift a cost from a variable to a fixed.
Where the value is proven, make this shift only when you can negotiate on substantial price savings by doing so.
Take time to plan your negotiation strategically. Create competition for your dollars. Create a list of concessions you want, with extras of you to trade off.
Research the market to better understand the best deals you can expect. Even hire an experienced negotiator to help you make the purchase on the best price and terms you can. If the asset you’re buying for your business is large enough, the ROI/price on your negotiation work can be immense.
Set optimal inventory levels and stick to them.
And finally our concluding point on “Business profit strategies for business growth”. Set optimal inventory levels and stick to them. Constantly be on the lookout for ways to safely reduce your inventory levels.
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