How to increase profits?
Everyone who does his own business dreams of increasing profits. And no matter what works for the owner - a large factory producing cars, or a small stocking shop in the basement. As a rule, if a person becomes a businessman, then he does it consciously. It is important to understand that it is necessary not only to be an entrepreneur, but also to undertake something in order for the business to grow, bring more and more profit. Therefore, many people, in the very first days and weeks of work, are interested in how to increase the profits of their enterprise, shop, warehouse, shop, cafe, bakery, etc.
Ways to increase profits
What is profit? Even schoolchildren know this now. Gross profit is all the money that comes into the account of an entrepreneur. Net profit, which is the cause of the question, is calculated very simply. From all income received must deduct all expenses. Both that and the other should be limited to one time period, for example, per month. Consequently, in order to increase profits, one must either reduce costs, or increase sales, that is, gross profit.For different enterprises, there are ways to increase net profit. Consider the main groups of business structures to understand the methods of increasing income for each of them.
Profit at the enterprise
In order to understand how to increase the profits of an enterprise, it is necessary to determine what is easier and cheaper for it to do - to cut expenses or increase revenues. To begin with, a company, especially a large one, rarely sells itself in retail, it delivers goods at a lower price to wholesalers who have contacts with retail chains. To increase the size of the enterprise, you need to either build your stores, develop a network, hire sales staff, train it, pay salaries and much more. As practice shows, it is so costly to do that no trading margin will justify it, created for the sale of a single product, which produces the plant. You can also find new buyers, wholesalers and increase wholesale sales, which will also bring profit. But for this you need to buy new equipment to release additional volume of products. And for this equipment it is necessary to expand the area, and for them to buy land ... and as a snowball, costs increase. Therefore, for a large plant, the most profitable occupation is to reduce costs. There are lots of options here.It is undesirable to save on employees' salaries. If you have been upgraded and now you need fewer people at work, this is the right savings. The remaining employees need to increase the salary by 20 percent, and the redundant - to reduce. Review the costs of stationery, utilities, purchase prices for raw materials. And how much electricity do you take? Do you have taxes on the most profitable tax system? Do you take loans for the best deals? Maybe factoring is more profitable for you? You will definitely find places in your cost estimate where your economical ... hand has not yet stepped!
Profit of a commercial enterprise
In a store, costs can rarely be reduced, because there, finding goods cheaper, inferior quality is obviously purchased. Therefore, it is necessary to increase profits here only at the expense of the turnover of the goods, the increase in passability in the store, that is, the increase in the number of customers and their average check. Based on these findings, we consider how to increase the profit of the store. You will need to regularly hold promotions and tastings, defiles and campaigns with discounts and gifts. In addition, you need to place a competent advertising on those carriers that look, listen, read your potential buyers. Carefully watch the assortment.If you sell not only luxury furs and diamonds, then divide the product line into three groups: social goods and the same prices for them, goods that are used once a week and less often with midi prices, and good, but mass goods that buy once a month or for the holidays. Another good way to attract customers is the issuance of discount cards and SMS notification of new products.
If you are engaged in catering, then you will be interested to learn how to increase restaurant profits. Competent large cheats on alcohol, coffee and tea will bring you a good financial result. And unusual dishes from simple ordinary products, national cuisines, polite and fast service, the absence of drunken teenagers - everything will make your restaurant a very prestigious establishment.