When it comes to success, take action. And, take action every day. Here are 13 tips that will help you increase profits; recover profits and build a better bottom line for your business. These are practical tips that you can put on your calendar and implement. Then, just add up the dollars these ideas have netted for your business.
1. If your business is seasonal, ask your biggest vendors to let you stock up now, but pay when customers buy. Also, re-negotiate your leases to pay only those eight, nine or ten months out of the year when you experience sales. See how well your cash flow improves.
2. For the next two weeks, have your customer service personnel keep a list of products your customers would have bought had you stocked them. Then calculate how much revenue you would have earned by stocking the three most requested items.
3. Ask your employees to make a list of 10 ways they would like to be rewarded for a job well done. See how much you would have saved by awarding these perks, instead of giving cash bonuses.
4. Ask your production foreman to estimate how much you spent in lost production, manufacturing errors, injuries and re-works. Then calculate how much extra you would have saved by paying your manufacturing crews a small percentage of the savings, materials waste reduction and hourly pay required to fix mistakes.
5. Tell your plant foreman to give you a list of any equipment that is idle most of the time., The n calculate how much you’ll save in casualty insurance, property taxes, maintenance, storage space and carrying charges by getting rid of it.
6. Ask your secretaries, delivery people, janitor, customer service personnel, shipping clerks, production workers, service people, paralegal, staff accountants-anybody that performs day-to-day work in your business-to write down five ways your company could save money. See how many profitable ideas you’ll get.
7. Start sending letters to customers who discontinue doing business with you thanking them for their past patronage. Find out what went wrong and fix it. See how many call you to reinstate their account.
8. Ask your accounting department to rank your customers by dollars spent. Calculate how much more you’d make by transferring your expenditures from servicing the lowest producing 80 percent to “wowing” the top 20 percent of your customers beyond their wildest expectations.
9. Ask your accounting department to tell you how much you spent last year on overnight and two-day shipping. Then calculate how much you would have saved if just 75 percent of those packages were mailed two-day Priority Mail through the U.S. Post Office at $3.00 a piece.
10. Ask your payroll manager to produce a report adding up overtime pay for the last year. If you pay overtime for more than eight hours a day, rather than for more than 40 hours a week, as the law dictates, change your policy immediately. Then calculate the cost of hiring part-time workers to do overtime work instead. See how much you’d save.
11. If you currently bill customers a fixed amount every month, calculate how much you’ll save in monthly mailing costs and how much you’ll earn on cash flow by billing six times a year mailing in advance every two months instead.
12. If you bill for professional services, calculate how much you spent last year to perform work that could have been billed, but was authorized in process, not at the original contract signing See how much you’d save (or earn) with a system to sell more work up-front , rather than add small job sales or change orders to a job in progress.
13. Calculate how much more you’d earn if you improved your net, pre-tax profit by just 10 percent. Make a list of all the things you could do with that money.