Published On: Fri, Sep 23rd, 2016

Clever Business Strategies To Boost Your Bottom Line

Ask most people new to business how they can increase their profits, and most will tell you the same answer: get more customers! However, there is an issue with this one-track way of thinking. Yes, it’s always great to get more clients. But it’s also expensive. Not only do you have to invest in marketing and advertising to draw people in. There’s also the extra costs of your raw materials and production. It’s risky, too. What if you set up a contract for a minimum order of raw materials, but the rise in customers is just a flash in the pan? Your company will be facing severe problems in the financial department.

So instead of just aiming for new customers, businesses should be looking at other, more achievable goals, too. And these should include analysing your business and finding ways to cut the cost of every sale. This way, you will boost your bottom line, make more money, and there is far less risk involved than there is when finding new customers. Here are a few areas of your business that might be a good starting point.

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Maintenance

First of all, how much money are you spending on equipment repairs each quarter? Maintenance can help you reduce the costs of repairing and replacing broken gear, in any industry. Office managers can save energy bills by maintaining their air con and heating systems. Construction managers can save time – and money – by avoiding machinery breakdowns on site. And the same can be said for manufacturing businesses, who rely on machinery to keep production going. Simple things like checking your hydraulic oil is the right viscosity for your machines can help improve performance. And, in turn, it will give you more bang for your buck. So, start proper maintenance schedules if you want to give your bottom line a boost.

Clever Business Strategies To Boost Your Bottom Line

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Improve productivity

Start using management software to ensure that all team members are pulling their weight. Real-time tracking will show you who is delivering the goods and who is costing you money. You should also seek to automate as many processes as possible, from accounts receivable to social media management. You don’t need to reinvent the wheel, here – you just need better tools to track and check your overall performance. With the right data sets in front of you it will be easier to see where you are leaking expense. And it won’t take long to apply the perfect patch and improve your bottom line.

Clever Business Strategies To Boost Your Bottom Line

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Reduce energy use

Put a simple energy policy into place, and you will reap rewards – fast. You will trim your utility bills by a significant amount – anything up to 25% – just by being more careful. Use energy saving light bulbs, and start turning the lights off overnight. Reduce your office temperature by a single degree and you can trim your heating bill by up to 10%. Go paperless – it’s better for the environment and your company profits. And finally, lead from the front. You can’t expect to issue eco-conscious orders to your staff if you aren’t following the same rules yourself.

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