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Tips for improving profitability.
Two ways to increase your profit.
- Gain new "profitable" business.
- Reduce the costs of existing business.
We all know it's not as simple as that, but in a nutshell these are the only ways to grow profit.
The above two "obvious" methods of growing your business and increasing your profits are rarely seen in tandem.
Most companies throw vast resources into securing new business, and then throw yet more resources into servicing that newly acquired customer, the profitability of this activity is rarely questioned.
How much more profitable could you be?
The answer, in 90% of cases is as simple as the question itself, the fact is that by paying as much attention to your expenditure as you do to your income, your bottom line can be vastly improved. You can:
- Improve your cash flow.
- Reduce the need to seek finance.
- Gain a competitive edge with sustainable margins.
- Forge strong relationships with suppliers based on mutual respect.
- Improve organisation-wide motivation and confidence in leadership.
The problems faced by the small to medium sized business in the UK today are twofold:
- What measures do I need to focus on to increase my company's profit?
- How do I find the time, or manpower to realise these benefits?
The bigger issue of actually running your company often gets in the way of finding any solution to these two problems, and those minor areas that could reap significant profitability benefits are often not focused on.
The first step is often accurate reporting on the current business position through the provision of management information, and management accounting systems.
What are the most important focus areas for increasing your business profit?
- Accurate management information must be available, in the form of management accounts and a realistic, professional business plan.
- An audit of your business expenditure over the last 12 months can often reveal areas for considerable savings.
- Make sure you're in total control of your waste, many companies can realise a serious financial benefit by controlling office, warehouse or factory waste.
- Analyse the culture within your organisation, how could a change of attitude or behaviour within your company increase efficiency and reduce waste?
- Negotiate with your suppliers and don’t be afraid to look at alternative suppliers to reduce costs.
If you’re sitting there looking at this list and thinking; “There’s no way I have time to do all of that” you are not alone.
How can CBM help?
We at CBM have many years experience of running small to medium sized companies in the UK, we can help you to:
- Raise money from within your business without new finance.
- Secure a supply chain for a new product or service.
- Turn around a company facing trouble.
- Increase profits and dividends.
- Achieve the best price possible when selling your business.
- Be stronger than your competitors and achieve growth at their expense.
- Avoid making redundancies or cutbacks by saving money elsewhere in the company.
Once we have spoken with you in more depth about your goals and aspirations, and initially have focused on those areas you feel most require attention, we will make our recommendations on how best to achieve the savings or bottom line figures you want.
How much does it cost?
You will not be charged for finding out what potential there is within your company, and furthermore wherever possible we work for a percentage of savings achieved, so you can feel confident in our dedication to you and your company's aims.