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In the world of entrepreneurship, the major aim for most entrepreneurs is to minimize cost and improve profit but it ain't as easy as it seems especially with the harsh competition who would do anything to steal the whole market share to themselves. In business success is majored by different things, among them are profit made, number of staffs, product market share and many others. As you can see i mention Profit first because it is the most fundamental aspect and backbone of any business, with sufficient profit, companies and businesses can achieve the other two point mentioned, they can afford to employ more staffs and use their profit for advertisement to increase their market share.
A general rule in your financial success in business is that you cannot increase profits directly, only indirectly. You cannot just say that you are going to increase profits of your business without some specific strategies. There are actually a number of ways a business can increase it profit, weather the profit will be coming from increasing their revenue or by minimizing more cost. I did some research and here are some point i found out on how to minimize cost and increase profit in business.
1. Go Paperless
Not only does going paperless have the added benefit of being good for the environment, but reducing your business’ reliance on paper makes things a lot cheaper. It’s not necessarily important to cut out paper entirely, but making a more concentrated effort to cut down on the amount of paper you use can help. Cutting down on paper costs also extends to costs associated with paper, including printer toner, maintenance as well as things like binders, storage cabinets and the increase number of man power needed to search through the tonnes of paper document when there are needed.
Tip: If it doesn’t have to be on paper, then don’t put it there. Make sure that all of the necessary documents at your office or facility have been properly backed up, and then start emptying file cabinets and prepping documents for recycling or shredding. Once all of those file cabinets are empty, sell them to a second-hand office furniture store and pocket the cash, or donate them to a charity or school and use it as a tax write-off.
2. Raise Your Prices
In many situations, you can raise your prices by 5 or 10 percent without experiencing any market resistance. If your products and services are of good quality and your people are friendly and helpful, a small increase in your overall prices will not drive your customers away.
Tips: You can't just go on raising your prices, so before you raise your price on your product make sure you increase the value of that product, so your customer will get the value of the extra increment needed to purchase your product or services
3. Convert Your Leads Into Paying Customers
Depending on how full your sales pipeline is, it might be time to make a push to convert some of these leads into paying customers. Task your sales team with closing outstanding deals or offers that have been languishing. Or offer a special deal for first-time customers, and make it even more enticing for them to try out your product or service.
Tip: Conduct a month-long sales push with incentives for your sales team that revolves around closing deals with new clients or upselling current clients. Sometimes the monotony of sales needs a bit of a shake-up, and incentivizing sales above and beyond the norm may reinvigorate your bottom line.
4. Expand to a New Geographic Area
It’s possible you’ve saturated your local market and tapped it out. So why not expand into another market? Added costs must be considered, including supporting remote sales reps or ultimately converting new leads to paying customers. The long-term benefits of expanding your market geographically, however, may be hard to ignore.
Tip: Examine your target market before engaging it. It might be best to identify target clients or businesses in the new area and reach out to them first, as opposed to doing a general marketing or advertising push. By strategically entering the new area, you might find it easier to convert clients and/or sustain sales.
5.Ask Your Employees for Input
Many business owners know this, but your employees are a treasure trove of information. Chances are they’ve already thought of ways to cut costs or increase revenue and simply haven’t mentioned it because no one has asked. You’re not the only innovator in your organization. Leverage the talent you’ve hired.
Tip: If you do ask employees for input, make sure to respond to their suggestions. Make sure to acknowledge employees who have offered solutions—and this is important—even if you don’t use them. Doing so ensures you’ll continue to receive employee feedback the next time you ask for it. If you do implement an employees’ idea, celebrate it! Get their permission first, then make a big deal out of the fact that Bob and Sally are innovative thinkers who are helping your organization.
6. Enhance Your Current Marketing Collateral or Advertising Efforts
Maybe it’s time to revisit your marketing materials and/or your current advertising. Based on the market and your customer demands, your marketing materials might be outdated, and adding a fresh spin, even to just the language might open up new opportunities.
The same can be true of advertising. It’s possible you’ve gotten all the mileage you can out of your media type or outlet. Move those dollars somewhere else, perhaps to search engine optimization or a redesign of your website.
Tip: Don’t stop your advertising completely. There is nothing wrong with revisiting your current media plan and asking for input on where you should spend that money. Some of that advertising money could go to dues for a professional association or attending a conference to open up new avenues and make new connections.
Remember that in reality increasing your profit is mostly a combination of minimizing expenses and increasing sales. However, there are slight adjustment you can make to other aspect of the business to help you achieve the ultimate goal of maximizing your profit. And don't forget that these are just a few point of so many point you can use to increase your profit.
Please comment below and if you have more ways that is not mentioned above, feel free to comment on it and we will be happy to add it and give you credit And also share us with your friends, you will never know how much of a favor you might be doing to a friend whose business is taking a turn for worst.
THANK YOU
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