I recently shared Profit Improvement Hacks #1 if you missed the article you can read here.
Profit Improvement Hacks #2
Increase the number of purchases by each customer by 3%
– upsell, upgrade or whatever it takes to increase the average number of sales or sales value by 3% per customer
Decrease overheads by 3%
– is there any way you can increase effectiveness or reduce cost by 3%. Check every line in your P&L and ask if you are really getting the best value
Sort under-performing clients, products, suppliers, staff (sack 5%?)
– try and fix your under-performers. If you can’t fix them then sack them (ideally you do this legally)
Pull in cash 10 days faster
– another processes piece, just get more vigilant with collecting any money owed. After all it is your money and they did agree to pay you. You are not, after all, a bank!
Spend cash 10 days slower
– just slow down the cash leaving the business. Take advantage of any credit terms that supplier’s offer – pay when required not ASAP.
The Impact
I have worked with many businesses to put these kinds of measures in place. The compound effect is quite remarkable on not only the bottom line, but the cash-flow and surprisingly the general attitude within the business.
Further reading: