Business owners can always be on the lookout of increasing their profits. Owning a business is one thing and making profit is another. A business is money making intended to generate large sums of profit. Some businesses can generate 10%, 20%, etc others cam make as much as 100 , 200 %, 300 % etc. the profit generated will depend on the type of business, its size, area of influence etc. creating business within their businesses can really boast the profit making margin. Profit making in any business can be boosted in the following ways;
1. Have an excellence goal for your business
In every aspect of a business operation, you need to aim for excellence. Excellence is the intangible things that we do that turn to yield maximum profit for our business and it depends solely on a clear understanding and good mastery of our business market. As an entrepreneur you need to have the right motives towards why you set up a businesses; you must always keep in mind that you are meant to serve people and to ensure that customers are satisfied.
2. Added Value
In order to make profit, products and services need to have some added values. Therefore, you must constantly come up with good ways and different means to add value to your products and services. Growing up in my neighborhood, there was this story about a famous woman selling food (Fufu and Eru) in a Secondary school. Base on her popularity and the high profit she made selling food she was accused by her competitors who were selling the same thing. One day her competitors went and complain to the school authorities that this woman was using charms to cook her food. The woman was summoned by the Principal and was asked to defend herself. The woman accepted that she was using charms and later went forward to explain the type of charm. She told them that her secret is that when the students come to buy, she sells them the food and for those who cannot afford meat or fish, she makes sure she put some small slice of meat and fish to them. She explains that the charm is the small meat and fish.
The said charm added an extra value to her products and yielded enough profit for her. Every business needs an extra value in other to make better profit.
3. Increase your price
An increase in the cost of your products would obviously lead to increase profits. This has to be done in a very careful way. Examine what others offer for the same products, try to provide better quality and also improve upon your services. The increase should match the quality of your products and services.
4. Expand your business network
Expand your contacts with other business men in your domain or different domain. When contacted by a client for a service or product you do not have contact another business man and collect the product at a cheaper rate. You can then resell the product to the client at a higher price thus making profit without any extra investment.
5. Acquire New Skills
Always be on the watch out for new skills to improve your business. These skills could be obtained for free via online courses or other courses offered free of charge. For example if you are a poultry farmer you may decide to improve your skills on mushroom farming. The latter will provide you with additional source of income.
6. Establishing appropriate monitoring measures
When you establish appropriate measures in business, it helps to monitor the progress and the level of achievements. With these measures you will know the number of customers you have, average sale per customer etc., that will allow you project the number of customers you are going to have in the nearest future.
It is important for a business which deals with numerous goods and services to keep tracking system using software or appropriate documentation. This system will help us to be very organize, know the various product in stock and to easily look for products should in case a customer is in need for.
7. Droplet business
This is very important for start ups. You may be a consultant or a business man investing in a multimillion project, it is important to own a droplet business. Droplet businesses are small businesses with very limited risks associated to them. The profit made by the droplet business can sustain your very big investment project; for example in paying your bills, employees and transportation.
8. Appreciate and Motivate your Employees
You can make a lot of profit by trusting and appreciating your employees. Share the vision of your enterprise with them and also open up for new ideas. More importantly as the business grows motivate your employees. Treat all your team members equally and consider them all very important for the growth of your business.
9. Employ workers
If you want your business to grow and make much profit then you must employ qualified and talented workers. The employees should have talents in different disciplines. Hire people who are very smart. There is not enough time in each day. Multiply the number of hours worked by the number of employees; this will give you a multiple in your profit margin.
10. Establishment of firm contracts
When you are in business realized a command after the establishment of a firm business contract or upon reception of an advanced payment. Some people make commands but really do not commit themselves. Once your product is ready they may no longer be interested. This can lead to large losses within your business.
11. Knowing your competitors and what they do
To be able to maximize profit adequate knowledge of the market environment is essential. You also need to be aware of what competitors are doing at all times. Compiling a file consisting of all our competitors with their names, what they do and may be a prediction of what they might be doing in four to five years’ time. Should in case there are any good ideas from the competitors, we can also copy and improve on such ideas.
12. We need to believe in our products and services
If you do not believe in the products and services that you offer, then our customers also cannot believe in the products and services. Most successful business people who have taken their business to another level, making high profit succeeded because they had high passion for what they do and they are completely satisfied with their products and services.
13. Target customers
Every business has a target customer base. When carrying a business campaign, target a community with people who are highly interested in the products and services. You also need to know our customer intimately, put yourself in their shoes and be able to think like them.
To make profit in a business is not always easy but you can also take the business to higher heights, make the maximum profit you want to have, if we can only follow the strategies above, and do the intangible things that create the difference between you and your competitors.