Maximize Your Margins
There’s strength in the numbers, but there’s also truth. When margins are slim and underperforming, the cause is typically related to one or a combination of factors. Here are three approaches business owners can take to ensure they are maximizing their margins
implement systems and processes
Systems and processes are the bricks that comprise your business’ infrastructure. They support business longevity, breed consistency and promote scalability. The value in this implementation is recognized in decreased costs, increased productivity, greater efficiency and, you guessed it, increased profit margins.
Unaddressed inefficiencies will slowly suck the life out of your business. Shifting focus from “getting the job done” to “getting the job done properly” can result in significant bottom line improvements. Eliminating process steps, dependencies and/or resources may cause temporary pain as the business adjusts to change. However, the long term efficiency increases will pay returns in labor costs and time, which have a direct impact on your profitability.
One of the most difficult things to do in business is to cut costs. Costs are often tied to people we care about or to “nice-to-have” luxuries, to which we’ve become accustomed. However, maximizing your margins calls for a prudent look at current expenses. Distinguishing value drivers from profit parasites will highlight your greatest opportunities to reduce overhead.