Better Business
Issue Thirty Nine
This month:
Strategies for Making Profits
Did you know?
Strategies for Making Profit
Know your Business inside and out
To achieve profits in a small to medium business, it is important that the business owner/manager plan to achieve excellence in the operation of the business. Unless excellence is achieved in all aspects of the business, then the business will not generate the best level of profitability. Know your business inside and out - this includes all functions of the business.
Manage Cashflow
Remember cash is the life blood of the business. Watch your accounts receivable. Are customers slow in paying their debts? Money withheld from the business, is money that could be used in the business to generate profit.
Be Unique
If you want to make profit in your business, you should try to make your business different/unique from your competitors. Consider your competitors and work out where you can distinguish your business from theirs. Otherwise - how are customers going to know that you are any different to any one of the hundreds of potential competitors?
Add Value
To make money you need to add value to the basic product or service you are offering. You should be continually thinking of ways and means of adding value to whatever you are producing in your business.
You are there to solve a customer's problem and the customer will reward you by paying an inflated price if the customer perceives that they have received an excellent value added service. If the customer only receives a basic service, then the customer will expect to only pay a 'bargain basement' price. Good service is the key!
Believe in your product or service
You and your staff have to believe in the product or service that you are selling. Show your customers that you are totally satisfied with what you are producing. Package the whole product or service with the add-on service and sell it to the customer with a passion. You will not receive excellent profits in your business unless there is some passion and commitment in the way your business deals with its customers. Successful businesses promote and sell their product with great enthusiasm and then embrace their customers with outstanding customer service.
Did you know?
Did you know HWI Limited offers periodic accounting services ranging from one month to six monthly financial statements for your business?
Disclaimer Information contained within this document is of a general nature and does not constitute advice. Readers are cautioned not to act or reply on it without first seeking professional advice. The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
