5 Profit Enhancing Strategies For Small Business Owners

by Louis Bongiovanni

Here are 5 profit enhancing techniques that will help you grow your business.  These proven strategies, when implemented properly, are sure to help increase profits.

  1. Automate the Financial Process: With advances in Quickbooks and electronic banking, you need to automate the bookkeeping process.
  2. Develop Financial Discipline: When you create a financial routine for your business, you hold yourself accountable for financial benefits and consequences. This allows you to focus on what matters the most and provides a true measure of effectiveness.
  3. Increase the Number of Transactions: Profits increase dramatically with volume. Increase the number of times clients buy from you especially leverage the internet for follow-up or automatic sales makes a significant impact.
  4. Increase the sales amount of each transaction: Measure average sales trends and try to increase. Push appetizers or desserts if you are a restaurant and bundle services or products if you are in the retail business. Cater to your existing buyers as they are most likely to repeatedly buy from your business.
  5. Set Financial Goals: Helps the owners to define business expectations and personal success. Greater profits are more likely achieved if they are written and communicated with everyone in the business.

By delegating a specific function, in this case the finance function, you dramatically increase your profits and can focus your time and energy on the opportunities and threats that arise in the industry.