Profit is essential to your business's sustainability and must be at least one marker of business success. Here are five simple ideas to help you increase your company's operating profit margin, (i.e. your pre-tax profits from the actual work of your business.)
- Redesign workflows and systems for greater efficiency. Streamline excessive steps, re-order processes, re-engineer physical workspaces, etc.
- Eliminate tasks and activities that don't add value to the company or customer. Every dollar you save by eliminating things that don't add value to your company or to your customer drops directly to your bottom line.
- Give your team a clear picture on ways they can contribute to profitability. Every team member is an agent to increase profitability. Empower them to be part of this effort to increase profitability.
- Increase value to clients and customers. This will help you shorten your sales cycle, increase your closing rate, lengthen your client retention, and perhaps even increase pricing.
- Increase your "dollars per transaction" and "profit per x ". Ask, "How can I grow each customer transaction to a larger dollar amount?"