2016-11-21 00:00:00Profit & LossEnglishhttps://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/Man-Instructing-Listener-Maximize-Profits.jpghttps://quickbooks.intuit.com/ca/resources/profit-loss/4-resolutions-to-maximize-your-profit/Maximizing Profits: Four Business Resolutions to Start Now

Maximizing Profits: Four Business Resolutions to Start Now

3 min read

It doesn’t have to be the start of a new year to think about resolutions that can improve your personal and business life. You can make business resolutions to maximize profits at any time of year. Sometimes it just takes a single, effective resolution to bring an enormous increase to your company’s bottom line. Looking at possible options to decide what might help your business the most gives you a place to start on your resolutions.

1) Get Involved in Your Community

Why should you include community involvement on your list of small business resolutions? Getting involved is a way to contribute to your community, and it shows that your business values the people, places, and programs within. It’s a great way to maximize profits, as people in your community may be more excited to support your company when they see you doing good for others.

Community involvement also makes more people aware of your business. It can double as advertising, and your community involvement also helps you develop your network, which could help you find more clients. For example, sponsoring a little league baseball team could help you develop a network consisting of the parents of children in the league. When they see your logo on the uniforms or see you interacting with them at games, they may take note of your business if it’s a service or product they need. Sponsoring a race, such as a 10K event, could help people associate your business with virtues such as health and competition, which can help develop your brand.

2) Focus on the Positive

It’s easy to become frustrated by things that don’t go as planned. Maybe you have a difficult client who creates more work for you than they’re worth, or you have a product that costs a lot to produce but generates little profit. Focus on the positive aspects of running your business and putting more effort and attention into them. Make a point of focusing your efforts on satisfying your best clients and spending less time on the troublemakers if there’s nothing you can do to turn them around to being good clients.

For example, you might identify your best clients and develop a plan for expanding your business with them, both in terms of transaction size and frequency. Focus on promoting your best products or services by demonstrating why they’re more desirable or useful than lower-cost alternatives. Make a point of emphasizing the availability of accessories or other extras to get the maximum sale with each transaction. When customers express their satisfaction about doing business with your company, ask them to recommend your company to others whenever possible. You can also show appreciation to your best clients, letting them you know you you appreciate their patronage by offering discounts or sending them gifts.

3) Learn About Online Metrics

Familiarizing yourself with important metrics that measure the effectiveness of your web presence can help you increase your bottom line. For example, learning how to nudge your conversion rate higher can bring a jump in profits. The bounce rate measures the number of visitors who leave your website without staying long enough to look at your offerings. Making note of your channel-specific traffic is a way to document how many visitors come directly to your site and how many come from referrals from external links. Using various metrics and formulas can help you evaluate your current situation and look at how you can improve to do more business.

4) Maximize Your Profit by Boosting Efficiency

Operating efficiently helps your bottom line by increasing the goods and services you produce and decreasing the costs to do so. Your efficiency can change based on a number of factors, including the speed of vendors, efficiency of employees, and your internal processes. Spotting issues in efficiency can help you make changes to increase productivity. For example, do any of your vendors regularly experience delays that slow down your service to your customers? Your business benefits if you can find more efficient vendors before you lose customers.

Customer relationship management software can alert you to such situations. A CRM platform could be a worthwhile investment because it enhances your contact with customers by keeping all their information at your fingertips. CRM systems automate the sales process and track transactions with vendors of products used by your firm.

Simple resolutions can make a big impact on your profitability. Taking advantage of tools to help track your finances supports you as you work to maximize profits. Using an accounting system, such as QuickBooks Online, you can generate a Profit and Loss statement automatically. Learn how today.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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