- Posted by: Thamizharasu Gopalsamy
- Category: Business coach
Increasing business profits consistently is a prime objective for any business.
So, if you’re a business owner, you’ll definitely want to increase the profit from your business.
In this blog, I have listed 5 ways you can use to increase your business profit.
1. Build an extraordinary team
Having a great team is one of the absolute necessities to increase profit from your business.
You should inform your team members about your goals, and all of them should work together and committedly to achieving them.
Don’t know whether you have an extraordinary team? Here’s how you can check.
You must have a very big vision and you must have a plan and provide direction for your team for the same. Also, you have to articulatively communicate with your team to follow your plan. For example, if you run a business that’s current revenue is Rs 5 crores, and within two years, you want to grow that revenue to Rs 25 crores. In this case, your team members should believe that they can achieve this goal and work together towards achieving it with dedication.
If they do so, then great! You have an extraordinary team!
If you feel that you don’t have an extraordinary team, you can implement the steps and strategies needed to build them.
2. Reduce fixed costs as much as possible
Fixed costs involve the money you spend on rent, salary, and other constant expenses.
Though reducing fixed costs can be explored, it’s possible to do so.
For instance, say that you want to reduce the rent expenses. In this case, you can opt for a hybrid model of working — especially if you run a service-based business.
Coming to salary, you can hire freelancers instead of hiring full-time employees — even if you run a manufacturing business. Why not outsource manufacturing? Also, thanks to the growth of technology, there are many automation tools out there for almost all departments, such as HR,Sales,Marketing,Management. You can try to use them, if relevant, and reduce the salary expenses or, in some cases, eliminate salary expenses altogether and improve business efficiency so much.
You can use a similar technique to analyze and reduce your other fixed costs.
3. Promote yourself
If you run a small or medium business, promoting yourself is important.
You should let people know that you’re the best in the industry to make them purchase your products or services.
You can promote yourself by publishing photos and videos on social media platforms. For instance, if you’re running a product-based business, you can create a video of yourself using your product and explain its benefits.
Besides publishing photos and videos on social media, you can create a website and publish beneficial blogs. When you do so, readers will come to know about you and your products.
Bonus tip: If you don’t have the time to write blogs or scripts for videos, you can hire freelancers to do so.
If you have a good amount of experience in your business niche, you can also consider publishing a book. By doing so, you can gain a good amount of publicity.
Now, what if you’re running a large-scale business?
If you run a large-scale business, I would still recommend you expose yourself to the customers because it helps build trust.
4. Capture new markets
If you want to increase profit from your business, you should capture new markets. It will cost money to expand your market, but if you do it correctly, it’s worth it.
If you’re running a service-based business, you can expand it by opening branches in new potential areas. You can also consider local SEO. If you do local SEO correctly, you can get a massive reach by spending less amount of money.
If you’re running a manufacturing or product-based business, you can expand it by opening dealerships or authorizing agents in new areas.
If you can sell your products through the internet, you can also give e-commerce a try.
Nowadays, thanks to the web builder platforms, creating an e-commerce site has become pretty easy and affordable.
Bonus tip: There are many freelancers out there who can help you with local SEO or creating an e-commerce website.
5. Improving efficiencey in all business processes
Making the best use of the available resources can help increase the profit from your business. We have to analyse all the processes involved in each department, then have to separate activities into two different types. 1) value-adding activities for customers- 2) Non value-adding activities for customers. Then we have to eliminate non-value-adding activities. For value-adding activities, we have to find automation tools and implement the same.
Automating tasks is one of the best ways to save time and utilize the available resources.
As mentioned before, there are lots of automation tools out there in all deparments. You can go on a hunt for them and find the ones that will benefit your business. If the tool fits within your budget, you can go ahead and purchase it.
Next, you should find a way to reduce turnaround time. The method of reducing the turnaround time will vary depending on your business industry. So, ensure to perform a deep analysis of your business tasks and find out the ways to reduce the turnaround time.
If you have not yet implemented these steps your business, I suggest you do so immediately to see an increase in your profit.
If you have already implemented these steps, I suggest you optimize them to see an increase in your profit level.
As a business owner, it can be pretty difficult and time consuming to execute everything yourself. If you feel so, you can consider hiring a business coach to help you with the process.
Would you like to make 2x more profits? Save lot of money? Would you like to run a business on auto-pilot? Submit the form below. I will help you.