In a bid to help you keep your bottom line high, this week Axis for Business asks; how can a business make more profit?
Make Money to Save Money
As an energy and telecoms provider, who brings competitively priced services to businesses across the UK, Axis for Business knows how important money saving is to SME’s. Considering the scale of a small business’ operations, every penny helps to keep you in the red.
Flipping that, one of the best ways to save money is to ensure you have more money in the bank. Obviously, this often depends on the model and type of your business. However there are general tips you can implement throughout your operations to increase the flow of cash you have coming in.
Five Tips to Increase Your Profit Margins
Through experience, Axis for Business has learned that the following five tips are fantastic ways to bring more money into your business…
1) Improving Customer Service: One easy, yet effective way to bump your profit margins is to implement measures to improve your standard of customer service. As you do, the volume of your loyal customer base will increase, and consequently, so will your profit margins.
2) Offer Improvements on Your Services: One way companies already drive profit is to rebrand existing services and offer them with add-ons. This persuades the customer they are getting value for money and allows you to raise the price, as you are offering more, and thus, you will lift your bottom line.
3) Hire Out our Employees: If you have particularly talented members of staff, whose time isn’t being fully utilised, you have a drain on your resources. Why not fix that drain and make money, by hiring out said employee on a sub-contractual basis?
4) Craft a Social Media Campaign: Marketing is proven to bring in extra revenue, but traditional marketing strategies can be costly, which is why if you want to bring in additional profit, you should look to social media instead. Social media campaigns cost little to nothing, and have an organic reach with a huge audience, to ensure you generate more custom, and therefore, profit.
5) Reduce Your Production Costs: One of the most effective ways to drive profit is to reduce costs on the products you already have. Studies have shown that by implementing measures such as switching to cheaper suppliers, you make up to 5% more profit each year.
There is No Such Thing as Can’t When It Comes to Increasing Profit
Always remember that there is no such thing as can’t when it comes to increasing your profit margins. There is always a way to generate extra revenue, and that extra revenue can be used to ensure the costs your business does incur, don’t impact your bottom line