3 Tips To Improve Your Bottom Line
To improve your bottom line in business we have learned to do two things:
- Grow your Revenues or
- Reduce your Costs.
It is very sound advice but the numbers cannot tell you about:
- The morale in your business, or
- The make-up of your customer base or
- If your systems and processes are sound.
In other words, it does not tell you about the way you are operating.
If you are losing money or if the revenues and/or profits in your business have hit a ceiling, then you need to change your Operating model. Whether the changes are small or expansive, your business must be able to adapt and respond to change.
You need to dig into your business and totally re-evaluate how your business is operating. To do this I suggest that you go right back to business basics by answering these questions:
- What is your Vision? Has it changed?
- What are you selling and does it continue to offer what your customers are looking for?
- Who are your customers? Have they changed? Is there anything else you can do to service them?
For example, if you are selling a service, consider selling your services in a different manner by:
- Taking your business mobile OR
- Creating consulting packages at different prices AND/OR
- Licensing other people to deliver your services independently but still under your brand.
- Are the relationships in your business matching your vision? Look at the relationships amongst your staff members, the relationships they have with your customers, the relationships you as an owner have with your staff and the relationships you have with your suppliers.
You need to articulate your vision to them so you are all working towards the same goal. At the same time, find out who they are and what their goals are. It will be a very motivating and enlightening experience for everyone.
Some business owners are so busy just trying to get through the day that they fail to step back and objectively look at the way they are operating their business. By focusing on the purpose of your business, you are forced to take a more outward look at your business and away from a focus on the numbers.
To improve and maintain a better and healthier cash flow in 2018, you must continue to adapt and make every effort you can to change the way your business is operating and the way you are creating better value for your customers. Start today!
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