Business owners are always thinking of ways to improve profitability. The suggestions in this article will help to accomplish that goal.
Seven Ways to Improve Profitability for Your Business
1. Consider Telecommuting Whenever Possible
If an employee can perform some or all of his or her duties from home, it makes sense to allow them to do so. Your costs for office space will be less expensive even if the employee needs to come into the office from time to time for meetings.
2. Give Employees a Car Allowance Instead of Providing a Company Car
Providing a vehicle is very expensive. Not only do you need to factor in the cost of the car itself, but also maintenance and insurance costs for which the business is responsible. It is much more economical to pay out a flat rate each month that the employee can use toward the cost of using his or her vehicle for work.
3. Join Organizations or Clubs Where You Can Network with Others
Most people would rather do business with someone they know or a person who has been referred to them by someone they know. Instead of spending a lot of money advertising for new customers, get out and meet new people who can help you in your business. If you aren't a member of a leads generation club, start one of your own.
4. Keep Travel Costs to a Minimum
Save personal visits for situations where they are absolutely necessary. Travel is expensive and travel time is time that can be spent on other tasks that lead to more profits for your company.
Use the phone, set up a conference call for multiple participants, or use instant messaging software to communicate with people at a distance. If you want to make an announcement or a presentation online, book a small business chat room at a set time and issue invitations by e-mail.
5. Get a Detailed Quote Before You Buy
Make a point of asking a prospective supplier to give you a quote before you commit to buying anything. You want to make sure there are no surprises when you are presented with a bill for supplies or services.
6. Shop Around
Being online opens many options when it comes to ordering items you need to keep your business running smoothly. It makes good business sense to shop around. When getting prices from vendors who are in a different region or country, be sure to take into account that you will be required to pay shipping costs to get supplies delivered to your door.
It may make more sense to seek out local suppliers instead. They can get your order to you quicker and you may be able to save money by picking up your order.
7. Set a Good Example to Your Employees
If you behave in a responsible manner with respect to keeping costs under control, chances are your employees will too. Being the owner or manager of a business means that you need to set a good example for the people you work with. If you are respectful of company assets and refrain from spending money recklessly, your employees will do the same and increase profitability.
Make a Difference
Following these suggestions will help you to improve profitability for your business.