When a firm is established, one of its primary goals is to make a profit. After all, if it can’t make a profit, there really isn’t much point being in business! Virtually everyone that sets up a new business wants to make a profit, but sometimes they might not have the right knowledge or tools to make this happen.
If this sounds like you, and you are struggling to make a profit in your business, then you should check out these 7 ways to make your business more profitable!
1. Cut down on business expenses
This is one of the most common causes of low (or no) profitability in a business! You should consider doing a review of your regular and irregular business expenses, and determine what expenses you could do without.
For example, if your office leases a state-of-the-art colour photocopier, renegotiate your lease and downgrade to a cheaper model. If your employees don’t really use the water coolers that you rent, get rid of the water coolers and tell employees to use tap water or buy their own bottled water instead.
2. Outsource work that can be performed cheaply elsewhere
For many people, this can be a bit of a controversial topic, as it often results in employees being made redundant. In order for a business to remain sustainable, it must make enough money to break even and have a consistent profit so that it can reinvest some of that profit into growing the business.
You could outsource some work overseas or even to self-employed people within the UK, as you will end up having to pay less because you won’t need to pay for employee-related expenses like National Insurance and pension plans.
3. Streamline your business processes
You might not realise it, but sometimes you could be paying a lot of money to do something in your business because the process is inefficient. One example I came across recently was a non-profit organisation that had a membership system in place, which enabled their customers to buy products from their warehouse.
When a customer’s membership was due to expire, they would print out a mail-merge document and then send them out a reminder letter. This was a highly inefficient way of reminding customers about expiring memberships, as not only did they have to pay for the cost of the stamp, envelope and paper, but it meant a staff member had to spend an hour or so of their time doing this on a regular basis.
A more efficient way would be to simply email those customers using an email newsletter system such as MailChimp, where they could simply send an email out to people based on their membership expiry dates and the system would automatically send the emails out.
4. Maintain an energy-efficient workplace
Not only is being “green” good for the environment, but it’s an awesome way of saving money! Many local authorities charge commercial customers less for taking away pre-sorted recyclable waste than they do for commercial waste that ends up in landfill.
Meanwhile, energy-efficient light bulbs and electronic equipment ensure that electricity is not used as much, which ultimately results in lower utility bills.
5. Market your brand for free
Granted, many things in life are not free, but did you know that you could easily market your brand for free online? An effective marketing plan that centres mainly around social networking services such as Facebook not only helps you to better communicate with your customers and potential customers, but it’s also a free!
You could use social networking platforms to direct users to a certain page or section of your website, which is a great way of generating traffic to it and generating awareness too.
There are loads of other great ways that can make your business more profitable, for example, the Brad Sugars website offers lots of free e-books that you can download which show you how.