Making Your Business More Profitable
2021 presents an opportunity to cast your strategic vision different from your 2020 surviving strategy. To be profitable, you need more revenue than expenses or fewer expenses than income. Your thriving business will generate enough cash to keep you in control of your destiny. Without intentionality and a plan, profits are going to happen.
Think of Incremental Profitability
You need to understand that there are variables that determine your level of profitability. Therefore, to increase your profits, you must work hard to address these variables. Assign financial values to each of your strategic decisions. Then share your expectations with your executive team.
- Creating your strategic roadmap
Your strategic roadmap serves as your compass for your entire business. Answer the following questions to focus on critical issues and develop an action plan for your teams.
- What can you do today, this week, or this month to start improving your profit?
- What is keeping you from making more sales?
- Is your brand being promoted on social media platforms?
- Are you speaking with your current top customers to understand why you are their choice?
- Are you encouraging your employees to share new ideas?
- Do you have a process for evaluating the sales possibility of current services/products?
- Adding value for your customers
Now that you have a roadmap communicating, and engaging with your organization is your next step. As your team gains awareness of your new strategy, explain what needs to change, align activities, allocate resources, identify measures, and new skills that may be required.
- Create exciting innovations customized to your customers.
- Make sure your market desires your products/services.
- Build relationships with complementary businesses within your industry.
- Establish strategic alliances to support your expansion of sales.
- Invest in improvements for your customer’s experience and team productivity.
- Engage your employees in your strategies, so they are clear about the financial status and your expectations.
- Meet with the largest customers to determine realistic revenues for the next six months.
- Generate customer encouragement to participate in special offers, possible subscriptions, and loyalty programs to boost sales to meet your projections.
- Use loyal customers to promote your uniqueness.
- Develop strategies to attract new business by product/service.
- Determine if there are new competitors in your market and adjust to counter their impact on your revenues.
- Supporting your path to profitability
Your teams will report how your new strategy is becoming the current working way to continue your transformation. Key financial benefits of your plan are starting to flourish as your organization completes the implementation. Activities in this stage include reviewing your new business model, reviewing changes to your initial strategy, and recognizing and adapting to shifts in trends.
- Pay attention to customer retention.
- Eliminate tasks and activities that do not add value to the business or customer.
- Build real-time reporting and KPI tracking, so you know results and make timely modifications, as needed.
- Shorten your sales cycle.
- Define how your services/products can be consumed faster, so repurchase occurred more frequently.
- Consistently ask your teams for ways to negotiate better pricing for your expenses.
- Utilize advanced predictive analytical tools to reduce your costs.
With enough insight and planning, you can make more profit. It is essential to modify your business plan as you proceed forward and adjust to feedback. When you practice continuous improvement in all these areas in your business, you will make more money, increase profit in your business, and contribute to your future financial success!
Plan! Adapt! Manage! Succeed!
AccuComp Enterprises collaborate with business and technology leaders to support the formulation and execution of transformational strategies.
Together, as your business partner, we can achieve your intended business outcomes by bringing the best of process re-engineering, technology experiences, and advanced business analysis.
Contact us at firstname.lastname@example.org
We are all in this together!