Five ways to grow your profitability
All new businesses want to grow profits. And all established businesses need to constantly renew themselves. So how do you grow your business and keep it financially sustainable?
Five simple rules:
1. Find new customers. Think about your marketing activity to create Leads. Then think about your sales activity to convert leads into customers.
2. Sell more to existing customers. Creating customer loyalty makes them return. Understand what customers need and create solutions to their problems.
3. Think about mergers, acquisitions, joint ventures and partnerships - this is another way of finding new customers that could be quicker than organic growth.
4. Seek cost efficiencies. Whilst increasing sales will improve your turnover, it may not necessarily improve your profitability that much. Reducing costs will directly improve your profitability.
5. Manage your margins - your costs for each business area are changing all the time. Can your prices? If you have a great product or service that creates customer loyalty, maybe you can be bolder in your pricing.
Make Accounting and Finance Solutions your trusted adviser to help you with points (3), (4) and (5).