Top 7 Ways to Boost Your Profits Through the Way You Run Your Business
By Kate Marsden
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The way a business is run will be reflected in everything it does so the more organized, planned and efficient it is, the more positive the impact on other parts of the business, such as the profit.
- Don't underestimate what you can do
How many times do you think, we'll never get that business because we are not as big as X? Don't limit yourself. Many people and businesses now want to buy from smaller organizations - they believe they will get better service and probably better value as the overheads are lower.
- Spend a week asking "why"
How many times have you heard "because we've always done it that way"? If it's a frequent saying in your business it's time to shake things up a bit. Spend a week focusing on asking why about everything - ask you customers and your staff why? If the only answer is "just because we do" then challenge it some more. You'll be surprised what you find out, what the supposed fixed things are - and seeing you ask why will do wonders for your staff too.
- Have a plan
Work out where you want to get to and how you are going to get there. Be clear on what your destination is and how much you want to grow by. Then set milestones and key objectives to get you there. And never lose sight of them – no matter how much your day to day responsibilities drag you down.
- Get help
So many times people say they haven’t got time to think about what help they need to move things forward. A good coach or mentor will quickly get you to work through issues and set direction – and can save you hours (and thousands of pounds) by getting you to the answer more quickly. If you want to be in the same place next year, keep on going it alone. If not, stop trying to do everything and get some help from someone.
- Live by the 80/20 Principle
In simple terms, Paretos law says that 80% of your profits will come from 20% of your customers. Make sure your time reflects this and you do not spend 80% of your time on the bottom 20%. Just be conscious of where your profit comes from now and the future and make sure you balance your time according to that.
- Embrace the things that go wrong
If something goes wrong with a customer, make sure you wow them with how the recovery is handled. Think about any customers you have at the moment who are not satisfied and what else you can do to recover the situation. Often people who have had a problem with a company can become their most loyal customers - if they are wowed by how the problem is dealt with.
- Keep your eyes open
There are lots of successful businesses out there. Keep your eyes open all the time and look constantly. Ask yourself, what are they doing that works and how could I use that in my business. If you could be a fly on the wall in many business meetings, you would be amazed at how much time is spending looking internally not at the outside world. The competition and customers are outside not inside your business – get your focus on them instead.
Want help improving your profits? FREE reports to help Small Business Owners stop falling for the myths and start understanding the real rules of profits. Download instantly for fast profit results! Kate Marsden is The Profit Mechanic and gives resources, tools and support to Small Business Owners to improve their profits. Read more about The Profit Mechanic here.
Article Submitted On: December 11, 2011