Increasing your profitability should be constantly on the radar when it comes to managing your team, department or organisation. It can be difficult sometimes however to see the wood for the trees, so here are three tips for you to focus on to help you meet your profitability goals.
1. Expand your business
In order to make more money this financial year, realistically something has to give; things can’t just stay the same if you wish to see dramatic change in your business. Embrace the change and take some chances this year in terms of new ideas or approaches. Focus on activities which others see as important and which will help your clients or customers save time, money or just make life easier in general.
Research your potential opportunity or service to gain alternative insights into your new plan. Fine tune your scheme; define and plan it in great detail so your clients will wonder how they ever did without it or you! These factors will ensure that your growth will be a win/win for all.
2. Manage your costs
This goes for your current costs and any new costs you may incur from expansion or improvement. Concentrating on your costs can help ensure you keep your eye on the profit goal; however it is important that you don’t harm the level of service you provide when you look to lower your costs or make any changes.
It might be a good time to reassess the suppliers you use, as well as the financial organisations you do business with. These are two ways in which many businesses can cut corners without even realising it. Consider using activity based costing to find the real cost of certain business activities. This method can provide helpful information that companies may not even consider when it comes to their day to day costs.
3. Boost productivity
Have you considered streamlining to help boost your productivity and increase your profitability? Questioning your methodology to get things done is always helpful even if just to confirm that you are doing the best that possibly can. If suitable, try using productivity targets with certain incentives to help your staff achieve their goals quicker.
Key Performance Indicators (KPIs) are very helpful in this situation. As most goals are achieved through a variety of people across many different departments, shared accountability is important to manifest. Of course any method of measurement will need to be done regularly in order that increased productivity is maintained.
Even just implementing one or two of these ideas may help your business achieve the boost in profitability it needs to move to the next level.
Have you considered coaching to help you reach your goals? Leadership coaching is very empowering when it comes to achieving those hard to reach intentions. Business complexities seem simple under our guidance and where you may have been bogged down in figures and facts, you can now start to embrace the change by thinking in new, different and creative ways. Contact us for more details.