5 things you can do to increase profitability
One of the common financial mistakes small businesses make is overlooking profitability in their pursuit of higher sales. But driving sales is just one of several things necessary to achieve profitability. Other steps should be in your playbook as well.
In this article, we share 5 things you can do to increase profitability.
1. Every employee is a salesperson
Every employee has a part to play in driving sales. In the era of customer experience, from the business owner to the delivery personnel, a positive experience can result in repeat purchase or referral. Help your employees realise their role in driving profitability.
2. Stay financially fit
It’s good practice to review your business costs periodically, especially during periods of rapid sales increases. Always keep an eye on the cost of production and sales. Some of the steps you can take include reviewing your suppliers, boost employee productivity and streamlining processes where relevant.
3. Review your offer
With technology increasingly pervasive in the world of business, market forces change more often. From price points to the packaging of your offer, review them to ensure you remain competitive. Where there are relevant opportunities to cross or up-sell, do so without coming across as ‘salesy’.
4. Stay innovative
Most small businesses get busy with driving sales that they ignore new ideas, or have little time and energy for it. It’s only when a new-kid-on-the-block is getting all the attention from customers will they be prompted to explore new ideas. It might be too late then. Innovation must always be on your business agenda. It is the lifeline of your business’ sustainability.
5. Keep marketing
Marketing isn’t a one-time affair. It is a long-term undertaking that will help the business bear fruits consistently. In this digital age, your online presence is vital. Ensure it remains relevant and updated. Use it to engage with customers and prospects.
In a competitive market, keeping profitability high is challenging. But the steps you take do not have to be overly strenuous. There are simple things you can do. To learn how they can work for you, connect with Sydney Accounting by calling (02) 9810 3222.