Get a Rapid Boost to Business Profit with Optimization
Over time, the profitability of your business is likely to become a smaller and smaller proportion of your business revenue.
You can give your profit a boost by doing a quick overhaul to optimize the way it operates.
If you have been running the business of any length of time, its profit can be improved by such actions as;
- prune away old profit-reducing vestiges of earlier business experiments no longer in use
- consider if you have the right number and skill in your staff otherwise profits will be eroded
- focus on your best products and locations to increase profit. Consider dropping the least profitable and their associated overheads
- make sure your inventory has plenty of the profit creating, best selling, lines and few of the unprofitable, no longer in demand, lines
- reconsider your pricing as this is one of the major drivers of profit growth
We have a special article in the Profit Accelerator entitled "Double Your Profits in 100 Days" that will walk you through the process we have distilled from the writings of many business researchers.
Can I Really Grow Profit so Quickly
You may be wondering how you can double your profit in just 100 days.
Well, the first thing to make clear is that we can't guarantee you will double your profit or that the profit improvement will take just 100 days.
We don't know your business but we do know that others have used this method and got profit increases in this ball park.
Maybe, in your case it won't come together as our article suggests but, almost certainly, your profit will increase if your follow this program.
Keep your Profit Growth Going
The good news about our profit improvement plan discussed in the "Double Your Profits in 100 Days article is that it will continue to improve your profit well into the future.
Because it looks at optimizing your profit creation, the optimization impact should continue to improve your profits as you then turn your efforts to increasing your revenue.
All the extra revenue will have the same - and possibly better - profit margin so more profit in total will flow to your bottom line.
If you can double your revenue in (say) a year, and your keep all the profit optimizations we discuss in the article above, you will at least double your profit again - making a 4 times improvement in profit in 12 months.
In fact, your profit might grow at more than 400% because you might not have to double your fixed costs like office space, vehicles and HQ admin staff. Any savings in these areas go straight to the bottom line profit.
Read more on how to increase your revenue in our Double your Revenue in 12 Months article.
How can Profit Grow so Quickly?
Throughout the Profit Accelerator, we write extensively about two optimizing techniques that we apply to our 'increase your profit" articles.
The first is the 20/20 Rule for growing profit. This states that something like 80% of the profit you earn comes from just 20% of your product or effort.
Finding and growing this 20%, means your profits expand as quickly as possible.
On the other hand, spending time and effort on the 80% of your products that don't earn nearly as much is a waste of resources that could otherwise be directed to profitable growth. Worse, some of these products may actually be losing money when you factor in things like inventory costs, sales and marketing effort and obsolescence. Getting rid of these loss making products will boost your profit with no further effort!
The second great tool is the Theory Of Constraints which teaches that there is usually just one thing holding back your profit creation. Finding that constraint and reducing its impact will lead to increased profits with little extra cost or effort often.
Read further on Profit Creation
The primary function of the Profit Accelerator is to improve your profit so there is a host of other articles relating to profit growth in the main Knowledgebase.
Do a search for articles that cover your particular interest in profit creation for more information on this important topic of profits.