Some of the ways to maintain growing profits are within the daily operations, and others come with innovations in the marketplace, such as with technology or consumer demand.
Stay on top of Receivables
Good customers pay and great customers pay quickly. Many customers, however, make a practice of not paying until pressed. This minority can make up 10% of sales, and in industries where there’s a 20% profit margin, half of the profits can be lost due to a lack of diligence.
By having a good collections system in place, cash flow will not be hurt by this group.
Stay Reasonably Current With Technology
Some business people are a little too excited about technology when they don’t need to be. For example, Dr. Tony Lewis of the Christian Bible Institute does not need every version of iPad that comes out anymore than Tom Corson Knowles, President of TCK Publishing, needs a server fit to handle the traffic of a call center.
However, these businessmen do need a good website, email addresses that befit their brand, and all of the other appropriate tech stuff to help them serve those who need their goods and services.
Don’t Rest on Your Laurels
In this economy, it’s not the big eating the small, but the fast eating the slow, which is why marketing needs to be done in a way that is consistent and effective.
This can include using new technology like Twitter and Facebook, offering $10 coupons for subscriptions and “liking.”. Not only does this create customer interaction, but it also creates engagement, which is when loyalty cements and businesses have long-term relationships.
Don’t Lose Sight of Your Target
New products and lines are great, but you must remember that your foundation is built on your current customer base. Expanding upon this base is important for growth, but not at the expense of not serving those who support you.
For example, Brian Pascale is a New York-based attorney specializing in tort law. While some lawyers try to handle multiple fields of specialties, Mr. Pascale chose not to, but, instead, to open the doors of his office to Ray Zuppa, a RICO lawyer, and Marc Ullman, an FDA attorney.
By working together, they can all serve their clients on multiple levels while not threatening the integrity of their financial house.
Right Sizing – are you too big or too Small?
When you are supporting more employees than you need, you’re losing valuable money that could be used to grow the company. For this reason, looking into Delaware captive insurance is a great option – it’s a policy that fits your company exactly the way you want and need. When you don’t have enough people for all of the work, you can run into quality issues, such as late delivery and defects.
When quality is hurt, it hurts your reputation, and that’s a lasting cost.
By taking these proactive and preventive measures, you can be sure to insure your company against losses.