4 Tactics to Help Improve Profits

Running a successful business is a balancing act that can come to an abrupt stop if your spending exceeds your income. Sometimes changing the way you approach a single tactic can significantly increase profitability, but for most businesses, increasing profitability means implementing some small changes gradually.

Below are 4 simple things that your business can work while working to increase your bottom line.

Change Operating Procedures

You need to generate more sales while reducing overhead costs. To accomplish this, try cross-selling - offering new goods or services that compliment your current offerings. Think about switching to a relationship-based sales model that gets customers coming back every month - or yearly. You may also try to increase profits by incentivizing new customers with specials or discounts.

Maximize Cash Flow

One of the best ways to accomplish stable cash flow is to offer pre-paid retainers to your customers or ongoing payment plans. Instead of a one-off contract, which will bring in limited revenue, consider offering them a discounted package for ongoing services. Your hourly rate might be lower, but you will be billing for a more significant dollar amount and locking your customers into a long-term arrangement.

Make Everyone a Member of the Sales Team

From phone call to email and face-to-face meetings, every employee can spread your company's message and engage in laying the groundwork for sales-generating behavior. You can get your employees interested and motivated in sales by encouraging self-development. You can accomplish this through roundtables, conferences, lunch meetings, and webinars. Remember, it pays to reward your employees for continuing education or those who make an extra effort to represent the company outside of work.

Make Marketing a Must

Networking is no longer about cocktails and handshakes. It's all about immediate gratification. Make sure your business has a substantial online presence through Facebook, Twitter, YouTube, and LinkedIn. Present sales presentations and announce special promotions using webinars. Try offering tutorials as a podcast available for immediate download. In the end, measure all of your marketing efforts and see which ones are more cost-effective - and pursue more of those activities.

Remember, making money starts by understanding where you stand - get a better handle on your company’s cash flow by working with our team of accounting experts.