Don’t assume you have to expand your company to increase profits. Extra cash is probably sitting right under your nose.
A thorough profit audit can uncover dollars in every department of your company.
Here are five ideas to get you started:
1. If you’re interested in borrowing money, it’s important to show your banker a marketing plan. But have you considered showing a potential lender a profit plan as well? Think of the extra capital you can borrow by showing your lender a realistic picture of your long-term profit potential.
2. Don’t rely solely on traditional sales goals that are based on the previous year’s performance. This encourages your sales force to coast when those benchmarks are achieved. Instead, compile some good market projections and set a higher goal.
3. Don’t confine sales to the sales department. Train all your employees to spot leads around town. If the referrals result in extra sales, award those employees with a small piece of the sales commissions.
4. If you ask 10 employees what your company does best, you’ll probably get a variety of answers. Conduct a few meetings and narrow it down. You’ll end up strengthening the company’s core operations and boosting the bottom line.
5. What products or services should you eliminate? That’s a painful question for many businesses. Most likely, you and your top managers already know the answer. Get it out in the open so you can start focusing on more profitable activities.
MKS&H’s professionals are prepared to work with you to meet your business challenges in this area and achieve the best possible outcomes. For more information, please talk with your MKS&H representative or contact us at 410.296.6200.
McLean, Koehler, Sparks & Hammond (MKS&H) is a professional service firm with offices in Hunt Valley and Frederick. MKS&H helps owners and organizational leaders become more successful by putting complex financial data into truly meaningful context. But deeper than dollars and data, our focus is on developing an understanding of you, your culture and your business goals. This approach enables our clients to achieve their greatest potential.