Two same-scale companies in the same business, yet sometimes one makes more profit than the other.How? Right technologies and smart strategies are very important in drastically cutting costs, increasing profits and improving your business’s bottom lines.Sometimes you end up devouring all your funds and income for expenses to integrate the operational processes, target the visibility in marketplace, and improve supply chain management etc. But it’s not always that the investment pays you off in good net profit. So how do you play safer and smarter?
Here are a few tips to give you an insightful look at how you can put profit at the forefront of your business.
1. Cloud-based online accounting
Accounting is one of the most important pillars for a successful business to stand on. If you get your hands right on this, you’re halfway through the hassle of financial management. With the availability of cloud-based online accounting software like Giddh, keeping an overview of your finances has become easier than ever. Such systems help you to manage your business inventories efficiently, view your financial reports, and keep a track of all your transactions, billing and general ledger- this helps you cut your costs every month, keep a tab on expenses and hence maximize profit.
2. Human resources management
You can implement electronic HR systems to manage your personal records, automate your payrolls, and keep a track of every employee’s contribution to the growth of business. This will help you to direct your attention to the required department and figure out your recruiting and retention strategy. You will also be enabled to make sure that the salary you pay your employees every month renders your business with good profit in return.
3. Encourage sales-generating behaviour
Every employee in your start-up or business can be a salesperson. Encourage them to spread a word about your company’s message and services through every possible way- telephones, emails, conferences, media etc. You can organize special certified training sessions, demos, group meetings, sales presentations etc. You can also award the employees who get the maximum customer leads. The more there’s a buzz about your products and services in the market, the more you are likely to expand your business and hike up your profits.
4. Change operational procedures
The key to generating more profit is increasing the sales while reducing the expenses. If the existent operational procedures aren’t helping you make good profit, try offering new services which make the customers stay connected to you. You can offer monthly or yearly plans instead of one-time service, offer multiple rounds of a service at a discounted price or also start an online wallet facility if that suits your business type. You can avail the customers additional discounts if they choose to pay through the wallets. So the sales increase,active cash increases, you have consistent customers, a bigger consumer network develops,the business becomes more stable and all of this ultimately boosts your market reputation and net profit.
5. Supply chain management
For an efficient supply chain management, it’s important to have an automated system for tracking all your on-going orders and deliveries. This will keep you updated about your targets, deadlines, business requirements, and overall progress. An inventory management system will help you automate the transactions,decrease the administrative costs, reduce warehouse space requirements and hence minimize the risk of any financial losses due to errors.
Shall you need further assistance on optimizing your business profits, feel free to contact us.