On a scale of 1-10, how would you rate the current performance of your business? Is there room for improvement? The answer is always yes - there will always be opportunities for improvement - particularly if you’re trying to grow and scale.
Conducting regular health checks on a business and evaluating its current position in the market is one of the most beneficial ways to outline opportunities for growth.
The market is forever changing which means there will always be opportunities for you to increase profit.
To help, here are six strategies that could potentially improve profitability.
- Expand your business
There are many ways you can expand your business. Tapping into new markets and industry verticals will broaden your reach. Identifying opportunities to launch new products and services is another growth option. However while new business is important, the untapped value that lies within your existing customer base shouldn’t be forgotten. New customer acquisition is costly and can be time consuming - organic growth of current accounts is a no-brainer.
- Reduce your volume of stock
Buy stock as you go. Reducing the volume of stock you have on hand will allow you to cut and control costs (storage expenses) in your business. Large volumes of stock can cause a real issue for your cash flow.
- Increase your conversion rates
If you’re an online business, this is a big one. Ensuring you convert your online visitors to customers will be the key to increasing profits. Monitor your conversion rates and look for impact - a change of half a percent on a conversion rate can make a real difference to your bottom line.
You can increase your conversion rates by:
- Improving user experience and navigation
- Ensuring you have call to actions in all the right places
- Providing informative and educational content and amplifying through the right channels to the right audience.
- Remove unprofitable product lines
A pretty straight forward point that a lot of businesses overlook. If a product doesn't sell, why keep it in stock? Holding onto stock that doesn't sell will damage your bottom line - by removing these lines you can make room for new lines that have more potential of selling.
- Re-evaluate your pricing
Don’t be afraid to re-evaluate your pricing to see where you can maximise your profits. Focus on marketing the products and services that differentiate you from similar businesses. Remember, customers are willing to pay more for quality.
- Utilize your staff more effectively
Ask yourself, do your staff have the ability to show their full potential in the positions they are currently in? Having the right staff in the right job is key to business efficiency and profitability. If your staff are held back due to basic admin tasks, maybe it’s time to consider a different strategy. Outsourcing is a cost saving strategy that will free up your local staff of the back office, low value admin tasks, allowing them to focus on what they were initially hired to do.
Could sending your admin offshore improve your profitability?
Here are four reasons why you should outsource your basic admin tasks.