Success can mean a lot of different things to a lot of different people
but when it comes down to it, the success of your business should only
be measured by one thing - profit.
At the end of the day, it's not how many people came in to your store
or phoned in. It's not even how many widgets you sold. At the end of
the day, what truly matters is how much of a profit derived from sales less cost.
It would make sense then that your efforts focus on profit as the end
result. With that in mind, there are only three strategies to increase
profits for your business.
1) Increase the dollar size of each order
2) Increase the number of times people buy from you
3) Increase the number of people who buy from you
4) Reduce Cost through better purchasing and labor waste.
Most likely, your business is already primed to attack each of these
angles.
Let's say that you are the owner of Happy Photographer Photography. Let your
customers know that for every $50 they spend they will receive a 4x5 mini-portrait. When they are eligible for the free print, offer them
the option of upgrading the mini-portrait to a desk-top. Properly priced you will make a little more from each customer.
Implement a customer loyalty program. Whenever a customer spends $200
with Happy Photography they receive a 20% discount on their next session. Show
loyalty to your customers, too. Create customer-only events and sales,
even workshops on scrapbooking.
Create photo gifts which incorporate your name. Be sure to place your contact info with each and every gift. This makes it easy for the gift recipient to
purchase from you. Be sure to also use this tactic when co-promoting
with similar businesses such as a florist..
Looking at the example Happy Photographer Photography, the tasks of
increasing profits was not a difficult one. Truly, it's a matter of
putting systems in place that generate increasing profits.
Labor costs are a tougher call. You need to pay an appropriate amount for quality people. Once you have them hired make sure that they do not lose time and productivity because you have failed to implement efficient procedures and created a work environment that is efficient. Take the time to document procedures and make sure your people understand them and follow them.
Improving your purchasing power can be done by some appropriate buying. Most major office supply chains offer rewards. In addition, many manufacturers offer online coupons and incentives.
Start your focus on reducing cost by looking at the areas of business where you make the most purchases and look for options. Consider buying larger quantities. For example, Epson sells paper in 100 sheet boxes. They also sell it in 500 sheet boxes. The 500 sheet price is very close to the price of 4 100 sheet boxes. Look at your consumables and you will find other items which can be purchased in bulk.
As a final thought on reducing business costs is to monitor waste. If you a lot of prints or wasted product in the trash look at the office procedures to see why mistakes are being made.
Amazon.com has an excellent selection of books on cost management.
Take a look at your business and examine the systems you have in place.
Chances are there's undiscovered profits lying about. Put systems in
place to gather those profits and you'll find your business reaching
new heights of success.
