The profit of any company is very simple to calculate - deducting expenses from income. There are two standard ways to increase profits: increasing income and decreasing expenses. However, everything goes smoothly only on paper. What specific steps need to be taken to increase profits?
Instructions
Step 1
Develop a strategy that takes into account all the promising directions in the development of your company, its current place in the market and the importance of marketing moves for profit growth.
Step 2
Raise the prices of your company's products or services. Be sure to coordinate your decision with your long-term partners and customers of your organization. Conduct an advertising campaign aimed at increasing the buyer's interest in your products and services. If the campaign is carried out correctly, it is likely that even as prices rise, your profits will increase, even if sales volumes do not increase significantly.
Step 3
Optimize production so that the cost of the final product is reduced. To do this, conclude contracts with new suppliers of raw materials or wholesalers, focusing on a lower price level, re-equip the enterprise, introduce new methods of production, carry out certification of employees in order to identify the level of professional suitability. If necessary, dismiss employees who do not meet the required level. Coordinate your actions in relation to workers with the labor inspectorate (including the conduct of unscheduled certifications).
Step 4
Study the prospects of your region or another city in terms of the feasibility of opening a branch of your enterprise. Open a branch of your company in another region or city. Run an advertising campaign in this city, but set dumping prices for the first period to interest a new consumer audience.
Step 5
Enter into contracts with commercial or industrial enterprises interested in your products. Optimize product sales to reduce the time spent between delivering products and generating sales revenue.
Step 6
If all of these ways to increase profits cannot be used at the same time, choose the most appropriate one for your firm through rational selection.
