Is It Possible to Increase Profits Without Increasing Turnover?

At some point, most successful business owners will saturate their markets and find it almost impossible to increase turnover. When you reach that stage, it’s vital that you create a plan for the future that will enable your firm to continue its growth. In many situations, that will mean launching new products or services for your clients and customers.

You might also think about expanding your operation and trading in new markets. However, sometimes you just have to rethink your approach. It’s usually possible to increase profits without improving your turnover, and there are some excellent tips below that should help you to achieve that goal.

Know when to outsource

There is no getting away from the fact that outsourcing is often the best solution if you want to cut back on spending and boost your profits. Business owners just need to identify the areas in which that strategy will provide the most benefits. Lots of companies choose to outsource tasks like:

  • Marketing
  • Accounting
  • Social media management
  • Market research
  • Customer service

You just need to search online for specialist firms that offer those services to other businesses. You can then obtain some quotes and perform the calculations to ensure you will save a fortune. Then it’s just a case of getting rid of a few staff members.

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Think about automation

It’s possible to automate many of the processes within your operation without breaking the bank these days using modern technology. There are lots of software applications that could remove all the hard work out of invoicing and ordering.

Using automation in construction, warehousing, and other manual operations will often involve the use of robotics. If your business exists within those industries, you could replace many of your human staff members with computers. It’s just a case of getting in touch with suitable experts, letting them know your goals, and then taking their advice.

Increase your prices

There is a benefit you won’t want to overlook if you’ve managed to saturate the market in your home country. If your company is the most prominent supplier or the only supplier of a product or service, you can set the going rate. That means sometimes it makes sense to increase your prices once your position in the market is secure.

If you don’t have many competitors, customers and clients will have to cover the increase whether they like it or not. Just remember that greed is not an attractive attribute. So, you need to work hard to ensure you don’t price your brand out of the marketplace. Still, increasing your asking prices will assist when it comes to boosting profits.

As you can see from the tips and information in this article, you can always make more money, even if you can’t find any new customers. You just have to use some common sense. Also, do yourself a favor and seek the advice of an experienced business advisor if you don’t have any experience. People in that profession will often take a look at your plans and highlight any potential issues before you set the wheels in motion. Good luck!

3 Ways to Run Your Business More Efficiently

One of the biggest companies in the world is Coca-Cola, another is it’s century-old competitor, Pepsi. On the surface it appears as if all they do is sell a soft drink for a king’s ransom (just kidding) — sounds simple enough. What’s more, you can buy a bottle of coke anywhere in the world, from Downtown LA to the most remote village in Mozambique. What does that tell you? Success in business is not determined by your product, or by the prices of your product, but in how efficiently you run your business.

Of course, you may be looking at that analogy and thinking that you aren’t Coca-Cola or Pepsi, but so what? They weren’t always as big as they are now. They both started out small selling small quantities in drugstores. What they did was think like a big business and that is what you need to do as well.

Allocate Resources for Profit

As a business, your sole aim is to make a profit, and the bigger your profit the better. That is why it is so important that every decision you makes leads towards this, including how you allocate your resources. How you spend your time and money is of the utmost importance, and that is something you need to sit down and scrutinise.

For example, if you got into work this morning and spend two hours signing off expenses or scheduling appointments, you need to realise this isn’t time best spent. Those two hours could have been spent on developing business opportunities that boost revenue. Now, that’s more like it.

Better Manage Business Progress

In order to be successful in business, you need to know exactly what is working and what is not. That means monitoring and measuring everything you can, from Human Resources through to financials. Luckily, there is technology for this, most of which will go further than just monitor and will actually automate functions, such as enterprise resource planning software.

However, don’t just settle for this, go one step further and run a SAP vs Oracle comparison. Make sure the tech you are using to better manage your business is the right one for you. Make sure it is offering you the most streamlined way of understanding and improving your business. That is what the big businesses are doing, and so you should be too.

Attract and Keep Talent

There is so much that needs to b said on this front. First off, keeping top talent is so much better for business for the simple fact it costs seven times more to bring on a new employee than it does to keep an existing one. Take BYG Systems, for example, a company that suffers extremely high employee turnover.

They have been in business for 30-plus years, but have never made it big because they waste resource and talent. However, the other thing you need to realise when it comes to keeping top talent is they have specific skills that should be used to do specific roles. Having them do miscellaneous tasks they don’t want to do, won’t just lower their morale, it will be a waste of the company’s time, money, and energy.