4 Ways to Increase the Profitability of your Business
23 Feb 2018 in Business
Running a business is not for the weak at heart. A business owner has to continuously look at the bottom line like the financial balance sheets in order to run a business. All businesses no matter the industry of exposure need to stay profitable to have their doors open each day. Even though survival is key, most companies want to thrive as opposed to surviving. How can you stay in business and increase your profitability? It takes hard work to pull it off, and the four tips discussed below can help you increase your business profits.
Marketing in Social media is one of the most important marketing tools in business today. It is not enough to have 10,000 followers on your social media platforms if those followers are not purchasing any of your products. To make sure that digital marketing is working for you, you have to come up with a reasonable expenditure, a branding strategy that you can apply consistently, a timeframe of updating your social media accounts on a frequent basis and ways in which you can communicate value to your customers. If you don’t already sell your products online or are limited in the ways you can accept payment you can find an online payment provider that will help you expand your options and increase your profits.
Increase your leads
All businesses need to know how to generate leads to stay profitable. If you have run a business before, you know that lead generation is the lifeline of your business. When you increase your leads, you will generate more customers and increase your margins of profit.
To become more efficient at lead generation, you need to have a plan and a solid network that you can apply the plan on. When you use your plan in today’s social networking sites such as LinkedIn, Twitter, Facebook, and Google+, you can get more done. You will have to optimize these social media accounts because they all promote ads differently, which means that you will generate more leads for your business.
Acquire funds quickly
When you process payments on a daily basis instead of a weekly basis, you will retain more customers because most people rely on online banking platforms to maintain their balances. If you process payments much faster, your customer’s won’t need to keep physical or mental records of the amount they spent because it will draft immediately from their accounts.
Lower your expenses
To ensure that you are decreasing your costs, there are a couple of angles you can take. First, you need to research the supply chains in your locality or market and ensure that you are getting the highest quality of products at the lowest costs possible. Be sensitive to the price changes in the market and always negotiate some deals with your suppliers. If it is possible, you can lower your supply cost because it is as important as maintaining high prices, especially if you have accounts receivable.
Secondly, if you have under-performing staff, you should terminate those who do not deliver the desired performances after a couple of reviews with them to improve their job. In case you employ people who do not embrace the vision of your company, you will lose a lot of money that you don’t have.
Thirdly, use platform that can promote your business at no cost or lower costs like the use of social media pages. Even though there is a payment service option for marketing on social media, you can use organic likes and shares to draw people towards your business; not only for name recognition but also in the promotion of the company’s products and services.
There are other tools besides social media accounts that can be used at a low cost or no cost at all; you have you find them and use them to increase your profitability.