28 Jan There are only two ways to grow profit – but are you missing a trick?
Written by Director Huw Moseley:
Last month, a few of my blogs focussed on growing profit. It’s important to note that growing profit, and growing the size of the business are not the same thing – and that ultimately there are only two ways to grow profit: make more sales and/or improve your margins.
But if you’re only focussing on selling more/putting up prices or reducing costs/cutting services – you’re missing a trick. It’s time to ask yourself these 3 questions:
- What is our most profitable service and how can we sell more of that?
- And which part of the business is least profitable/should we stop providing?
- What do clients want more of? Is there something we don’t currently offer that they’d value?
- How can I double my turnover without hiring anyone?
By asking these questions, you start to optimise your business and delivering value for customers, rather than thinking about putting your prices up (although this may also be a legitimate thing to consider if it makes market sense).
If you’re looking for ways to improve profit, a thorough review of your business finances is a really good place to start. With lots of experience of helping companies grow, in sustainable, future-focussed ways – we’d love to help make your dreams a reality, sooner!