Profitability: 5 Tips And Tricks To Improve It

STAY ON COURSE

The first thing to maintain your company’s profitability is to stay the course. In short: do not disperse . Indeed, too many entrepreneurs put in place a strategy and then abandon it or change it along the way:

  • Because they want to counter the most urgent
  • Because they have encountered an obstacle
  • Because they no longer believe in their strategy
  • Etc.

Whatever the reason you may have to change your mind, do not do it! Indeed, if you have established a strategy, two things one:

  • You’ve spent time and resources to put it in place, so money. To change it suddenly makes you simply lose this “investment” which should have been amortized in fine .
  • Also, if you have established this strategy, it is that you have deemed it relevant and potential source of profits at any given time. There is therefore no reason to deviate from it!

Do not forget two things. Changing strategy every 2 months or 6 months will only waste you money and energy  ; In the end, you will not gain anything. In general, to show results, most of the strategies you can put in place will take at least 1 year before they really work.

SAY NO TO LOW-COST

Faced with competition from services and products from low-cost countries, but also in our territory, competition from self-entrepreneurs offering low-cost products / services, many entrepreneurs believe that low-cost is the solution To their problems. This is most often not only fake but also risky . On the other hand, by pulling your prices down, you give a bad image of your products / services. If it’s cheap, it’s not terrible. In addition, we do not trust on low-cost! As soon as a similar but cheaper offer appears, your customers will leave you and you will put the key under the door.

Today, in order to build loyalty and to get out of the game, it is better to rely on quality, added value and packs to improve profitability in the medium and long term.

THINK MARGIN RATHER THAN CA

Too many entrepreneurs think CA priority before thinking about margins . The problem is that this mentality also contaminates salespeople, for example, when a good part of their salary is indexed on the turnover they realize … Big error: you must favor your sales at high margin .

Each semester, re-evaluate your customer portfolio and your products / services . If some people occupy you a lot of time but you bring back little margin, it will be necessary very quickly to think of separating!

OUTSOURCE WHAT CAN BE

Outsourcing goes directly into this logic: by outsourcing, you concentrate on your core business, entrust the management of certain tasks with low added value to specialists (whose prices you can negotiate) and thus increase your margin in a way Considerably lowering your structural costs  !

OPTIMIZE MANAGEMENT

Finally, the staff is the source of your turnover and your margin. Tired, stressed, demotivated or working in poor conditions is less productive and profitable than quality, motivated and healthy mental and physical staff. Management is obviously one of the keys to your profitability  ; Do not neglect it.

If you want to optimize your profitability, do not hesitate to consult our various practical factsheets on these various subjects and / or use our contact service to contact an expert near you

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