Without profitability, no company. But how do you increase your profitability? Here are 10 tips to help you along the way.
Decide why you want the company to be more profitable. Once you have decided, you can find arguments to make the necessary changes. Prepare yourself that a process of change will be required to reach where you want.
2. Get the staff onboard
Understand the company's challenges and goals by having personal conversations with all employees. Talk about the work situation, the salary picture and the development opportunities that exist. By getting “everyone onboard”, the chances of increased profitability increase.
3. Build a good team
It is not enough to have the right people around you. Add energy to welding the employees together and create a we-feeling. Keep in mind that employees who are doing well also perform well.
4. Set clear goals
Set a clear goal at what level of profitability is reasonable and feel right for your company. Compare with similar companies.
5. Create a strategy
Develop a purchasing and sales strategy. Follow it fully and dare to be tough.
6. Analyze and evaluate
Take the time to analyze developments and what you can do both in the short and long term in order for your company to achieve increased profitability.
7. Improve liquidity
Shorten the payment time. By trimming the billing routines and shortening the payment period from 30 to 20 days, you can significantly improve liquidity.
8. Follow up and act
Make sure that the accounting is well structured so that you can follow your set goals. When you start measuring and acting on the basis of results, you can have a great effect.
9. Work on the margins
Maybe you can raise the price of a product or service? Maybe you can also negotiate even better purchase prices for you?
10. Sell your invoices
Sell your invoices at the end of the year. This way you get money in the account while improving the company's finances for the new year. Do you want to get contacted?