During part 1 of Marginal Increase we touched on the three ways in which to increase profit margins.
Margin is everything when it comes to business.
After all, if you can’t maintain margin you won’t be in business for long.
So how can you increase profit margins?
Here are some questions to consider:
1. Who are your existing customers and what opportunities exist to increase margins or sell new products or services?
2. Who are your potential customers? What of your existing products and services might appeal to these customers?
3. What new products or services could be easily created from your existing business that would appeal to both existing customers and new customers? This might include entering a specific niche or a new market.
4. How might your existing business processes be streamlined to improve efficiency, reduce costs and increase value to customers?
5. What opportunities exist to reduce both indirect and direct costs? Of these opportunities, which are the fastest and most effective ways to reduce costs and improve margins?
Notice how these questions start with considering your customers?
After all, a happy customer typically means strong profit margins.
By following the sequence of these questions, you can develop a strategic approach to improving margins across your business.
So what are you waiting for?
Your loosing margin as you read this…
© Shawn Casemore 2013. All rights reserved.