[tweetthis]As #business owners, we currently look for ways to increase our #profitmargins. @RachelleWilber[/tweetthis]
Whether your business is new or established, turning a profit or losing money can feel like being on a rollercoaster. You continuously look for ways to increase your profit. To help, here are four simple tips to do just that.
Look at Overhead Costs
Start by determining where current generated funds are being spent. Overhead costs are usually the biggest and not always reviewed regularly for ways to decrease spend. If you like the space you are in, consider signing a long-term lease, which can usually bring the rent down. You might also review insurance rates as well as the return on any large campaign investments to ensure they are actually generating the revenue return expected. And, while no one likes to let go of employees, evaluating the workload and making sure your staff is working as efficient as possible.
Boost Company Culture and Morale
Studies have found that happier employees perform better. This means more work is completed in less amount of time. Host a company-sponsored event such as a family picnic for your employees as a “Thank You.” Offer rewards each month for things like most sales, most helpful employee, or simply employee of the month. When putting a motivational system in place, be sure to set goals low. It sounds counterintuitive, but setting goals too high can actually have a negative impact if employees struggle to reach them.
Utilize IT Services
Nothing crushes efficiency (i.e. profits) like poor technology, whether it’s because your wireless network constantly crashes or your phone system goes in and out regularly. Invest in a good IT team and services that can maintain data security so your business runs smoothly. Getting necessary help from qualified individuals can lead to increased efficiency.
Invest in Ongoing Training
Whatever else you do, you have to be able to convert leads to make sales. One of the best things you can do for your business and your employees is invest in ongoing sales training. This doesn’t have to be extensive and expensive courses every month, but take a close look at your sales process (and ask your employees what they feel works and doesn’t), and commit to fixing a little at a time. If you are on a tight budget, this can be something as simple as listening to a good hour-long podcast each week and discussing the information provided and how you can implement it.
Look at your numbers, get hands-on with employees (they are your best resource), and start taking little steps—there is no need to try to revamp everything overnight—and you will be on your way to better profits in no time.