3 ways to improve the profitability of the company

3 ways to improve the profitability of the companyIn my opinion there are only 3 ways to increase the profitability of a company when seen from the financial side, the following tips and a brief description of it:3 ways to increase the profitability of the company, namely:1. Reduce the burden2. Increase margins or profits.3. Improve SalesIf you can do three things at once, it will bring better things to the profitability of your company.
Reduce ExpensesOne of the most reasonable ways to increase your profitability is you by the reduction or control of the load - the company's expense. One of the advantages of doing corporate control of the load is due to the company's expense cutting nearly half of your profits. For every dollar that you managed to save by eliminating some of the burden of the company, you can receive extra money from your profits. (Of course to increase sales is another way to increase your profits, but the extra money just to bring in the sales of your company's profits by 25%). Many ways to reduce the burden - the burden of your company. You have to be creative in doing so, full of concentration and analysis. Although the operation is part of the business that may not be eliminated, you should think hard about how you can reduce operating expenses with extreme care - care. You also have to consider the good and bad in the long run. You should also consider the effect of cutting the load, do not just think short term, but long term should also be considered. Controlling expenses your company to do when you started your business. You need to carefully consider the burden - the burden of the company. With very careful - careful about spending and create a strategy for spending - spending your. Once you make a commitment to improve the profitability of your company, do control the burden - the burden of your company is an option that should be your top choice. Because for every control on expenses - expenses the company will bring direct impact on your revenue. Here are some tips to exercise control over expenses - the company's expense.
Never pay a fee - unnecessary bank fees.Start doing surveys and supervision of banks - banks that exist. If you make too many banks charging the transaction should not have to be so prepared - prepared to look for another bank to provide cost - low cost bank or may not be charged at all.It could also negotiating with banks that charge - the fee should not be charged to your company, to provide a comparison argument with another bank. I remember when I worked in companies of foreign, at the time it was the bank where we save money companies charge nearly 500,000 transactions each month, but the company is only just menimpan money for security only and is never used for the transaction. I then asked the cost of what the company charged. It turns out that the cost of information technology services for companies to use the bank for transactions, check balances or do online. Because I think the company is only intended to save money not to do teransaksi then I decided to turn off the service and the results we do not dikenaka cuts every month because of it.
Reduce the cost of your telphone.If you often make long-distance or long-distance telphone, then use the services of international telphone calls which costs more affordable. Information technology makes everything seem to be more easily and quickly, enabling the development of information technology without the cost of long-distance telecommunications telphone, just use the internet then you can do the telphone. Or mingkin you rarely do telphone distance, then use telphoe necessary. Many employees of companies who use telphoe office to make small talk with other colleagues outside of the office or even a lover - their lovers outside the area. Indeed, the cost would not be too great if it is done only once, try to imagine if this is done every day, and all of your employees are doing that all the time. Great is not it?.
Ask your price offer and make comparisons before buying anything.It's a little melehkan if you have to do a comparison between the companies to each other but it all for the benefit of your company instead. Indeed, sometimes the company is one with the other does not have much difference, but if you consume them in large quantities then the price difference will be obvious.
Increase ProfitsGross profit represents between sales and costs - the cost to generate the sales volumes. If your product is sold at Rp. 100,000 and the cost to make the product is Rp. 50,000 already including shipping cost, the gross profit was Rp. 50,000 or by 50%. Mechanism of increased profits as well as the company's expense reduction mechanism. Every dollar of income earned from increased profits. Let us suppose there is no reduction in the sale. It will produce benefits in the end. At the previous example, if the price of a product is increased by 10,000, the company profits will increase from 50% to 55.5%, the gross profit will increase from 50,000 to 60,000. Any owners of small and medium enterprises should undertake frequent monitoring and evaluation of the product benefits at least once a year. Decide once in every year when do you think is the right time to raise the price. (Usually the first time your company's fiscal year.) Mark the date on which you decide to raise the price. Analysis of the price - the price of your goods ranging from yng price lowest to highest price. Be - careful in raising the price on every product you. Do not have carelessly in raising prices - the price of your product, in-depth analysis is required for each hike you decide. Price increases should be based on the increase which is also competitive and deserves to be no increase in prices to increase profits.
Increase SalesAfter the load - you load reduced and your profitability has strategically enhanced then now it's time for you to make an increase in sales. However the attack (increase sales) is very nice compared to a deduction on expenses - expenses your company.