4 Strategies to Maximize Your Business’ Bottomline
You may also follow this easiest way:
At the end of each month, the one thing business owners look at is their company’s bottomline. Remove all the expenses and you’ll get the real picture of your profit. Sometimes, this picture can be a breath-taking landscape showing that your business is flourishing at every aspect. Other times, it can be a picture of a sprawling desert with almost nothing in sight signifying that your business is not making any money at all. Either way, your bottomline is always worth evaluating so that you can catch profit discrepancies early on before it blows out of proportion. There are many ways to maximize your bottomline to make sure that your cash flow is well managed. Let’s look at these four easy steps:
Cut down on overhead costs.
Lowering your overhead costs will help your bottomline. Assess your operating costs from your lease, utilities to employee salaries. You can cut down by considering downsizing your office space and allowing flexible work options like work-from-home arrangements to save on electricity. You can also scout for reliable outsourcing services that provide highly skilled virtual PAs for various business tasks. They offer business solutions at a very competitive price, too.
Be strict with your credit terms.
By this we mean shorten your credit terms with your clients especially those who consistently ignore credit reminders. If your business involves supplying products to retailers or rendering services to companies, you have to be paid promptly. Be more diligent in securing payment from delinquent customers and decrease their credit line if they continue to fail your payment requirement. Sometimes it’s those unpaid balances that mess up your bottomline.
Leverage internet tools.
Take a look at your marketing budget and see how much you’re spending. You can save a whole lot by using the web tools for multiple marketing and advertising efforts. Stay connected via social media, create compelling content in your website/blog, interact with your content in your Facebook and Twitter accounts, connect with influencers in Google+, and every free tool that the Web has to offer because that is where your customers are now. You can reach more without having to spend so much when you leverage social media for your marketing efforts.
Modify your sales efforts.
Sometimes you need to look at your sales strategies to see if it’s still working. Evaluate them and see if you need to modify or add something to it. Perhaps you need to cross sell. Add related products to your current offerings. You can also do special in-store promos during lead days to entice more people to buy. It’s all about continuously innovating your sales strategies to keep it effective and dynamic.
Businesses grow when you have enough profit to expand. Boosting your bottomline will help you increase your business and you can do this by making sure that your costs are way lower than your earnings. By assessing your day-to-day operations, sifting through the tasks that probably need to be automated, evaluating areas that need to be downscaled, and capitalizing on free extensive marketing through the web, you can fully maximize your bottomline.