Friday, February 10, 2017
Secrets of Improving Business Profit Margins, Without Spending A Penny
In today’s guide, we’re going to run through a few ideas on how you can enjoy better margins just by being sensible, making better decisions, and changing the focus of your business. Read on to find out more - and with a little luck, you will reap the rewards in the not-too-distant future.
Be more vigilant
First of all, it’s important to know where your money is going. This involves a broad range of activities, from tracking every last penny spent to holding regular reviews of expenditure and costs. It’s probably the most important and dramatic thing you can do if you want to start seeing higher profit margins.
Streamline your business
According to Rezzable, streamlining your company is the most important thing you can do. Streamlining is not just about cutting costs, of course, it's also about organising your business better, to ensure that productivity remains high. The idea is to make every single task in your business more efficient, and remove many of the flaws and blockages that many companies experience on a daily basis.
Focus on customer experience
Ensuring every customer sees your company at its best costs nothing. And, given that every penny your business makes comes from those customers, it makes sense to reward them for it. Offer a great customer experience, and you will reduce buying abandonment and brand disloyalty, and increase brand recognition and, most importantly, your profit margins.
Retain current customers
Instead of investing quite so much in finding new clients, start doing more to persuade your current clients to keep purchasing from you. Keeping customers is always cheaper than finding new ones - so consider how you are communicating with them, or offer them new deals and discounts.
Speed up your processes
The faster your turnaround time, the lower your cost per sale - it’s a simple premise and one that should tell you the importance of tracking your order and delivery systems. Making small changes can have a significant impact, and the less time you spend between order and delivery, the better your margins will be. Eliminate wasted time, automate what you can, and do everything possible beforehand to ensure speedier beforehand.
Cut low paying clients
What areas of your business are high producing? If you can work out where you earn your money, you can start focusing on dumping low paying clients, and do more to attract high payers. Don’t underestimate the impact low payers can have on your business, particularly if you are offering services. They drain your time, demand more for their money, and might actually end up costing you!
So, there you have it - a few handy tips to help you improve your profit margins Good luck - and feel free to share any tips in the comments section below!