Read our practical suggestions for small and medium-sized businesses to increase profits.
1. Increase sales Higher sales do not necessarily mean more profit. Ensure higher volumes will bring higher margins.
2. Reduce costs Understand your costs and control them. Be flexible and innovative in seeking more cost-effective solutions.
3. Suppliers Make comparisons on suppliers’ prices, but also explore the quality of service you will receive from them.
4. Expenses Keep your business expenses to an absolute minimum. Remember, take care of the pennies…
5. Product mix Know the costs associated with all products or services and their margins. Production, sales generation and delivery of each product should be in proportion to the profit it generates.
6. Raise prices Understand supply, demand and pricing in your sector. Keep abreast of the competition. Pricing is about what the market can bear.
7. Control your credit You are not a banker – keep on top of debtors.
8. Capital Use any capital that is tied up in the business to increase profits. Control stock levels and assess outsourcing or buy-in. Dispose of redundant assets.
9. Recognise relationships Recognise the relationships between sales, costs, products, price and capital. See the big picture. A change in one may not have the impact you want if it is not considered in the total context.
10. Review and manage Keep records and check trends and patterns.
Analyse the effects of internal and external changes. Understand the threats and measure the long-term impact of changes. To find out how the Forum can help you grow your business and increase profits, call 0845 130 1722.