Starting a business for most people is not easy. The classic thing, there are many considerations here and there so it is not uncommon to make people fail to start a business. Starting a business should not be one source of fear for everyone. To get rid of fears in starting a business, a person can make a mature business preparation so that he can live it with optimism.
Your goal in building a business or business is to make a profit. When a business is growing and making a profit, you will think of how to increase those profits. In the previous article, I wrote 4 ways to increase your business profit. This article can be a supplement. The fact shows, many business people are complacent with a lot of turnover, and forget about profit. Though profit is the main purpose of the business. Turnover is getting bigger every month, it does not mean profit / profit also increases.
Raise the price
The easiest way to increase profit margins in business is to increase prices. By only increasing the price of 10%, your business profits will immediately rise.
Increase service and benefits, not discounts
A commodity will remain cheap when there is no added value from its benefits. When a commodity is given a value-added benefit, the price of the item will go up along with the added value of the benefit. For example, coffee on the market is a cheap commodity. But after the coffee is sold at Starbuck, the value of the benefits increases and the price soars. Whatever goods or services you currently have, please increase the value of the benefits and services. And after that, you can increase prices according to the benefits and services you provide.
Discount is one marketing strategy that can increase business turnover. But you also have to remember, the main goal of your business is to get profit.
Giving discounts will reduce your profit margins, right? It’s okay to give a discount, but of course with cooking strategies and thoughts. Now, instead of always giving discounts that do not necessarily give results, you can provide benefits and better services at the same price or even higher.
Design a monthly budget
Success must be planned. Included in the issue of your business monthly budget. Design your monthly budget so that your expenses can be more controlled and planned. Without planning there can be a lot of unnecessary expenses, but instead, you do. Everything related to the issue of spending money at the company should have been planned. Especially if the expenditure is routine.
Stop ineffective ads
In the midst of such fierce business competition, advertising is part of a business that costs a lot. As a businessman, of course, you look at which advertisements are profitable and have an impact on business progress. Not all advertising is effective. Ineffective ads you must leave now. Always remember, the world is always changing and developing. Likewise, consumer behavior also changes. Media that used to be effective for your advertising, may not necessarily be useful for your business. Therefore, measuring the effectiveness of your ad is very important.
First, sell goods with high margins
What you achieve now is usually the result of what you focus on. If you sell a variety of products with different margins, it’s good from now on you are more focused on prioritizing items with high-profit margins. High margins will greatly help your business cashflow. It’s very different if you sell goods with low margins, even though there are a lot of sales volumes. Focus your sales on products with high margins.
Business goals are the final results to be achieved by business people from the business they do and are a reflection of the various results that are expected to be done by the parts of the company’s organization (production, marketing, personnel, etc.) that will determine the company’s performance in the long run . In general, the business aims to provide products in the form of goods or services to meet the needs of consumers and benefit from the activities undertaken.