On an enterprise scale, the question of how to increase profits can be resolved not only by an increase in turnover and a corresponding increase in revenue - as is most often the case when it comes to small companies. Henry Ford said that money earned is money saved. Therefore, in order to increase profits at the enterprise, it is possible to build the work as efficiently as possible with minimal expenditure of time and material resources, which ultimately result in unnecessary expenses.
Instructions
Step 1
Traditionally, the task of increasing profit in an enterprise can be solved by influencing one of three elements in the business coordinate system in which any company operates:
• market volume, • the size of the occupied share of the enterprise, • profitability.
However, a lot of educational literature and training courses are devoted to the solution of the first two problems, which, in fact, boil down to the management of the marketing complex at the enterprise. At the same time, the growth of profitability due to optimization of resources is not widely covered.
Step 2
The task of increasing profits at the enterprise is solved by implementing the following measures:
• Optimization of costs when purchasing resources;
• Optimization of costs in resource management;
• Improvement of business processes / Optimization of operating costs.
Step 3
In practical terms, optimization of costs for the purchase of resources means constant monitoring of the supplier market, agreements on discounts, the supply of large volumes of products at a pre-approved fixed price (excluding the effect of inflation), and the search for new suppliers (including from other regions). Resource management must be effective: first of all, include a system of accounting, movement and use of basic resources. Eliminate theft and any shortages.
Step 4
Improving business processes and reducing operating costs means redefining the well-established relationships between business units in order to increase their efficiency. Efficiency in this case means the maximum reduction in working time required for making managerial and administrative decisions, the elimination of unnecessary duplicate functions of the departments that hinder a single business process, as well as the optimization of costs associated with fixed payments (utilities, taxes, etc.)).
