THE ENTRECODE BLOG
5 ways to find your hidden profits within
Most of my clients don't need to work harder they just need to work smarter to discover the hidden profits within their businesses
Here are 5 ways we have helped clients find their hidden profits:
- Put your prices up. Many people think they need to compete on price but the last thing you want to do is be a busy fool, anybody can give it away. Smart businesses compete on either service, quality, relationships or delivery and this enables them to put their prices up and make good profits.
- Seek to sell additional services to customers, once they have bought from you they may be up for buying other services. Many businesses make their best margins on the extras they sell.
- Review your product/service portfolio. Analyse where you really make and lose money and cull the losers. Be wary of "favourite" products you like but lose a fortune, generally 20% of your products at best will make 80% of your profits so focus on them.
- Produce a zero based budget. Many businesses estimate sales add up costs and what's left is the profit. A zero based approach estimates sales decide what profit you want deduct this from the sales and what's left is how much you afford to spend. It’s a brutal approach that forces you to make some tough decisions.
- Inspect don't expect. Don't assume people who work for you are following all your rules and procedures to the letter, go and look what's actually happening but be prepared for some shocks!
Clients we have worked with using these approaches have found significant profits within and you can to if you really want to.
