INCREASE PROFITABILITY WITH OUR 5 PROFIT IMPROVEMENT TIPS
All businesses big or small, should be operating with the primary aim of making a sustainable profit.
Definition of Profit
Profit is an absolute number determined by the amount of income or revenue above and beyond the costs or expenses a company incurs.
Definition of Profitability
Profitability is the ability of a company to use its resources to generate revenues in excess of its expenses. In other words, this is a company’s capability of generating profits from its operations. Profitability is a measurement of efficiency.
5 Tips to Increase Profitability
1. Increase revenue – Sell more to your existing customers - what complimentary products or services can you add to your offering. Get new customers- who are your new customers and how are you going to get them? When was the last time you reviewed your pricing?
2. Manage costs – review your profitability for each product or service line. Do you understand your true costs? Review each expense, you can renegotiate most. Don’t cut costs for the sake of cutting costs, determine how the expense adds value to your business. Set a budget and review it regularly against actual expenditure.
3. Increase productivity – reduce distractions in your work-space, make yourself accountable to someone and reduce your interactions with timewasters.
4. Increase efficiency – align your daily tasks with your business plan and strategy, automate processes and workflows. Outsource or delegate tasks that are not your strengths.
5. Expand your existing market – look to differentiate your product or service to attract a new demographic or expand your geographic market, can you have an online shop or service.
What are you doing to improve your profitability?
Have you updated your business plan? A well-crafted business plan will also be able to pinpoint some of the areas that may need an overhaul.
If your business is struggling to make a profit or you think that your profitability metrics are out of kilter - book a consult with us.
Aurelius Advisory has a fantastic track record of helping business owners achieve their dreams and goals; allowing them to have a happier life and enjoy a much better work/life balance.
Is Customer Happiness Attainable
CUSTOMER HAPPINESS - IS IT REALLY ATTAINABLE?
Some businesses keep close tabs on how their customers are feeling and aim to keep them satisfied at all times. An example of this type of customer centric approach is Amazon, where the customer is always right and they have taken away all the risk associated with purchasing products online with their return policy, super fast shipping and low prices.
Customer satisfaction and ease to deal with form the backbone in the all important customer retention space.
Did you know that it costs most businesses 7 times more to attract a new client to the business than to keep an existing one?
To attract a new customer you have likely spent money on advertising or a promotion to gain their trust in you before they will open their wallet. While an existing client has the trust which you have already delivered on.
A few simple ways to keep your customers happy and to keep them as a client is to acknowledge how much you value them:
- This can be by personalising how you deal with them
- Remember their name or their past orders.
- Asking them for their feedback because you really value their opinion
- Give them something!! This could be a gift card or coupon to use for their next order with you or it might be some sample products for them to try or it may be a promotional product that they can use. EVERYONE loves a great pen and if it has your name and number on it, you will stay in their minds!
5 Ways To Keep Your Customers Happy
1. Listen to what your clients are telling you – before, during and after your sale, service or transaction. Seek and respond to feedback. This is invaluable to your business.
2. Get to know your client’s world – beyond listening to what your client is telling you, do your own research so that you can engage in meaningful conversations with your client about what your client does and what they’re interested in.
3. Respond promptly to calls, emails and messages – even if you can’t respond fully, an acknowledgement that you’ve received their communication will be appreciated. If you need help managing inbound communications, get it.
4. Do what you say you’re going to do – being reliable and dependable builds trust and will allow you to forge a stronger connection with your clients. This means you need to pro-actively manage your commitments, be realistic, start and finish things on time and respect time (your own time and your client’s time).
5. Keep in touch – get your contacts database up to date, set a client contact calendar and make sure you’re offering something of value to your client in each interaction.
At Aurelius Advisory we can help you develop some customer retention practices to help make the most of your marketing budget.
Spend a little more time on keeping your existing clients feeling appreciated and you will soon grow an impressive customer base to keep in touch with. The bottom line is that better customer retention results in brand advocates which lead to better business profitability.
If you are not sure how to improve your profitability - we have a few tips here 5 Profit Improvement Tips