The quest for profits is challenging if you’re lost in a jungle of uncertainty. But success is possible if you emulate a lion hunting for its prey.
Hard work isn’t a cure-all for success in business. True, passion and enthusiasm help to a degree, as well. But success requires more than just these qualities.
Many business owners are so involved in putting out fires, they fail to take time to address the bigger picture – to grow via business leadership. Strong profits are possible – even in a weak economic environment – if you use a multi-prong approach.
In your hunt for profits, here are seven steps:
1. Perform a business-health checkup.
A SWOT analysis on a regular basis is best every 12 months.
It’s important to budget the time to assess strengths, weaknesses, opportunities and threats – then make a strategic-action plan using the best decision-making.
2. Review your budgeting.
Don’t know where to start? Use best practices in preparing your financial statements.
If you’re a micro business, fortunately, budgeting basics are simple.
3. Analyze your profit situation.
Analyzing cost structures and profits are important. It really helps to determine your break-even point. An acronym for it is BEP.
4. Evaluate all your products/services.
Next, compare the viability of your offerings. Get rid of unprofitable products and services. In a good or weak economy, you always need to know which products and services drive your profit. Hint: There are four main profit drivers.
If innovation is needed for success, become a top innovator.
In a good or weak economy, you always need to know which products and services drive your profit.
5. Analyze your pricing.
History shows companies aren’t successful, if they focus on selling products and services at the lowest price in the marketplace. They can’t afford good customer service. So don’t be tempted to slash prices unless you really need to cut them to stay with your competition.
Give enough thought and consideration to your pricing. Remember, focus on strategies to give you pricing power.
6. Implement comeback strategies.
If your business doesn’t have a healthy cash flow, you’re in big trouble. For long-term sustainability implement turnaround strategies.
7. Never stop your marketing.
Marketing should be part of your daily focus. It’s important to make sure your marketing is cost-effective by using the essentials.
When doubt, value is of utmost importance. Think 1930s for business success. Why? Consumer attitudes are changing.
From the Coach’s Corner, more information related to this article:
Profit Drivers – How and Why to Partner with Your Employees — If you want maximum profit, consider partnering with your employees. “Key employees – in fact, all employees – will be more valuable to a company if they understand what drives profit and improves cash flow for the business,” says leading financial consultant Roni Fischer.
Don’t let Minimum Wage Mandates Ruin Your Business — Your cash flow, credit access, pricing and profit margins are all directly or indirectly at-risk with the proposed mandates to increase the minimum wage.
Sales Management: Motivate Your Staff in 10 Seconds — All too-often when sales managers are busy, they’re task-oriented. Not to be critical, but they’re focused only on what’s at the end of their noses. For effective management and revenue, the trick is to guard against it.
Energize Your Customer-Loyalty Program with 6 Steps — The quickest way for established businesses to optimize revenue is to have a stellar customer-loyalty program — there are six steps you can take for repeat sales and referrals. If you’re not a great steward of your current book of business, it’s futile to look for new customers.
“Make everything as simple as possible, but not simpler.”