In the current climate, maximizing a business’ profits is probably one of your biggest company concerns.
However, there are ways that you can minimize your overheads and maximize your profit margin with very little effort; you just need to make a few simple changes.
So, if you’re ready to take your business to the next level, take a look at our top 5 ways to increase your profits.
1. Go Remote!
Working remotely and using your home as your office can massively help to reduce the overheads of your business by reducing bills such as business rent.
Working remotely also means you can cut travel costs on your daily commute. Recent research has shown that the UK spends an average of £1,738 a year on their daily commute.
2. Use Recruitment Software
Although using recruitment software could be viewed as a long-term investment, it is a particularly useful tool for helping you to mass recruit in a much shorter period of time than traditional recruiting methods, and so will inevitably help you reallocate your time to more efficient purposes.
Additionally, using recruitment software like Oleeo is great for helping you to schedule interviews and categorize applications according to skill set and experience, which helps you to find the best candidate for the role faster.
3. Work Smarter, Not Harder
Working smarter has become the new trend in business to counteract the old mantra of working harder for longer.
Working smarter entails employing tactics like Eat That Frog – or tackling the harder tasks at the beginning of the week to allow you to slow down closer to the end of the week when you will inevitably be less productive and more tired.
Additionally, you might want to try taking more productive breaks. Instead of scrolling mindlessly through social media in your breaks, take some downtime for your brain and practice some meditation or sudoku that will help you to remain relaxed and focused throughout your working day.
4. Cut Out Unnecessary Spending
Cutting unnecessary spending is the first step to saving money that is easily disappearing each month.
To do this, cancel any unwanted subscriptions, or seek out cheaper alternatives of the same service, and track your monthly outgoings with a spreadsheet so you can easily see how money is being spent each month and areas you can cut back on.
Instead of hiring more staff, you can also upskill your staff and incentivize their progression with pay raises that will be cheaper than paying extra salaries. This will also increase your staff retention and the overall happiness and job satisfaction of your staff.
5. Build a Referral Programme
Customer referrals are one of the fastest ways to drive profits. Set up a program where existing customers can receive a hefty discount or reward for a purchase related to referring others to your services.
You can use websites like Referral Factory to build a custom customer referral model to bring a greater number of customers to your business.
Do you have any tips for increasing your business profit margin? Share your thoughts in the comments below!