In previous post, i talked about how you should think while deciding on your survival technique. In this issue, we will learn how to pull up a business that is doing fine. It’s more like a greedy man’s business (well, in reality, most of the businesses are run by greedy men)
If you have a fine up and running business, most probably you are looking for more profit. In order to have more profit, let’s review the equation of profit once again:
Profit = Revenue – Cost
Hence, profit can be increased in 2 ways
1) Increase revenue
2) Decrease Cost
How to do that is the question that is tough to answer. Here are some tips to answer this question for your business.
1) Increase revenue:
–> Sell more, no matter what demand it has. If there is less demand, create some. How to create depends on your product and the market where you are operating.
–> Increase price, only if you can manage the customers’ reactions, otherwise, don’t kill yourself and blame me afterwards.
2) Decrease cost:
–> Cut down on your utility bills. Switch off unnecessary lights, fans and other electronic gadgets. Control your AC, keep the temperature above 24 degree.
–> Cut down on your transportation cost. Avoid unnecessary travels. Try to utilize Skype Video call instead of traveling for a meeting. Efficient distribution system should also save some.
–> Are you spending more on useless trainings just to enrich your employees’ CVs? stop doing that, you can make them happier with giving them half the money cash instead of paying full for a useless training.
These are only a few tips. Think like a business owner, you will end up with finding some more interesting ways to maximize your profit.