A lot of marketers follow the philosophy that one should focus on improving top line growth to improve their bottom line. This strategy may work for some, but it is not the best way to do business. Bottomline is all about controlling your costs and trying to save as much as possible without compromising business and its position. To improve the bottom line of your business, you should focus on bottom line growth as well.
You can start with cutting your costs. Here are some good ways to go about it:
One of the first steps is to conserve energy and reduce your bills. You can do this by finding the best possible commercial energy rates on the market. Choose an electricity plan that will help cut costs without compromising output and sales. Look for the best plan that meets your requirements and needs.
A lot of staff gets somewhat addicted to the habit of ordering new supplies, sometimes even when they do not need it. This usually happens in the administrative department. The staff is not going to pay the bill which only means that it is easier for them to order more than what is needed.
While this is not always a problem and a little over supply is accepted, you are running a big organization with many different offices and staff ordering a multitude of supplies in different categories, this can quickly add up resulting in a problem for you. You need to find a vendor that can supply as and when you need it. You are essentially looking for on-demand supply even in limited quantities and not necessarily in bulk.
One of the biggest costs for any organization is manpower and staffing costs. Controlling this type of cost is very difficult, perhaps as difficult as managing your staff. There are few ways you can save big in this department. Stop paying overtime. Look for ways to increase and improve productivity. Hire people who are able to achieve more with less in a comparatively lesser amount of time. Get rid of employees who are not bringing much to the table.
But do not go overboard with this strategy otherwise you will end up reducing your overall productivity instead of increasing it. Trimming staff costs and going too lean can affect your production and sales negatively. Focus on hiring the most appropriate person for the job.
No matter the industry you belong to, you are running on your IT department. Automation in the information technology arena is a good area to review your costs. The IT department is one of the toughest departments to navigate when it comes to billing.
The number of technologies that are being used, software that has been installed and running, repair and servicing costs, SaaS services and more. This makes cost-cutting in this area difficult but at the same time important. Look for software and services that you no longer need. Look for alternatives which offer similar services and features at a relatively cheaper cost. You may consider hiring an IT contractor who has knowledge in this area and can provide his expertise to help you reduce costs.
Now reducing costs is not the only way of improving your company’s bottom line. You may also do it by increasing your overall sales. Here are some ways you can increase your company’s sales.
Picking the Right Price
Before you start promoting and selling your products, it is important that you do thorough market research and understand what kind of product your competition is selling and their respective prices. You are essentially looking to provide more value at a lower price which will help you increase your sales exponentially. You need to work on your conversion ratios as well so that you are reducing your cost per acquisition.
Working on Customer Feedback
The first thing to do is to collect customer feedback regarding your product and understand what your product is lacking or what features your customers are looking for. Understand this and then work on it. This is important. If you can do this the right way, then your sales are going to increase. Your customers will then become your brand ambassadors. This is one of the most favorable situations you can land into.
Define Goals and Focus
It is essential to clearly define your goals and it is equally important that you focus on achieving these goals. Your goals should be activity based like number of calls to make, number of proposals per month to be sent and so on. The idea is to make your goals actionable and achievable.
Define Your Customer
How can you make a sale if you do not know who your target audience is or who your customers are? You need to define your customers very clearly which will make it easy for you to make a sale and reach your target.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.