5 Ways To Boost Company Profits Fast
In order to get good deals on small business funding from major lenders, you often will have to show that your company is quite profitable. In fact, profitability is one of the top indicators that a small business lender will give you a loan. If you want to get business funding, working on your company’s profitability may work wonders on your chances. Here’s how to boost profits quickly, and hopefully get more money.
- Hire more sales staff, and get more aggressive with lead generation. More sales staff and more sales leads will naturally lead to more sales. If you pay your staff on a commission-only basis, this can quickly bolster your profits by a serious amount in a very short time. The key to making this work is to try to get sales for big ticket items, subscription services, or smaller “easy sales.”
- Raise your price slightly. A small price raise will not turn away most of your customers, but will make things work out well for your profit margin. If you have a lot of clients who choose you simply because you’re the cheapest offer out there, you may want to raise your prices for other reasons, too.
- Downsize unnecessary items and staff members. Do you have an employee who is just not doing his job? Do you have a printer that seems to have a life goal of paper jamming every five seconds? If so, then you need to downsize and trim the fat off of your business model.
- Offer a new big-ticket product if you can. Smaller sales mean that you will have to sell more of them in order to profit. If you have a product or service that costs a lot more, then a single sale can make a huge change in how your company profits look in a single month. (A good rule of thumb to use is that a more expensive item is a more profitable item.)
- Start working smarter, not longer. Human capital, also known as employee work time, is one of the most expensive parts of running a business. More often than not, people waste a lot of time on projects that involve tedious, unnecessary steps. Eliminate those steps, and you’ll likely find yourself doing a lot more work in a shorter amount of time.
Boosting company profits is great for your company, and might even make your need to get business funding at all obsolete. It’s important to remember that profitability is just one of many factors that can contribute to getting accepted for a business loan. So, just try to work on everything as much as you can. It will most likely work out in your favor.