How to Increase Profits your profits

Increase Revenue
- Increase Selling Prices
  - Increase Selling Prices
  - Change Special Deals.
  - Lower Discounts Allowed.
  - Revamp entire Price Structure.
  - Prune Product/Service profile.
- Improve Product Mix
  - Weed out loss-making products/departments.
  - Concentrate efforts on high margin products/services.
- Invoicing
  - Ensure all deliveries are invoiced.
  - Check invoicing accuracy.
Reduce Variable Costs
- Improve Productivity
  - Better Controls.
  - Enhanced Incentives.
  - Improve Training & Moral.
- Improve Yield
  - Eliminate Waste.
  - Introduce Quality Control.
  - Improve Formulae & Mixes.
  - Use Computer Controlled Devices.
- Reduce Direct Costs
  - Substitute with Cheaper Materials.
  - Improve Price Negotiating Performance.
  - Use Volume Bargaining.
  - Pool Purchases with associates.
  - Challenge Price Increases.
  - Spend to Save.
  - Update & Change Methods.
  - Ensure Greater Care & Clearer Instructions.
  - Avoid Throwing Away Money.
  - Employ Better Quality Staff.
  - Subcontract if Cheaper.
Increasing Sales Volumes
- Increase Marketing Activity.
- Advertise
- Make Special Offers.
- Identify & Follow up Lost Sales.
- Offer Sales Commissions.
- Appoint Sales Agents.
- Clear Arrears Back Orders.
- Cold Canvass.
- Show at Exhibitions.
- Improve Feedback regarding services.
- Hold Stock on Consignment.
New Business
- Enter New Markets
  - Sell in New Areas.
  - Export.
  - Widen Export Activity.
  - Create New Markets.
- Introduce New Products
  - New Products in Current Markets.
  - New Products in New Markets.
Reducing Fixed Costs
- Occupation Costs
  - Find Smaller Premises.
  - Sublet.
  - Change Locations.
  - Clear obsolete stock, plant and equipment.
- Staff Costs
  - Improve efficiency.
  - Remuneration based on Performance.
  - Reduce Labour.
  - Use Specialists where Cheaper.
  - Employ Casual / Part time / Contract Labour.
- Advertising
  - Measure Performance of Advertising Effort.
  - Eliminate or Redirect under performing Advertising.
- Repairs & Maintenance
  - Practise Preventative Maintenance.
- Sundry Costs
  - Improve General Efficiency.
  - Systematic Review of all Overheads.
  - Eliminate Unnecessary Costs.
  - Improve Negotiating Performance.
  - Raise Buying Performance.
Improve Fixed Asset Performance
- Existing Fixed Assets
  - Rectify or modernise them.
  - Prune out inefficient Plant.
- Investment In Fixed Assets
  - Select Projects with high projected returns.
- Control Investment Costs
  - Enforce proper pre-investment appraisal disciplines.
  - Insist on submission of alternatives.
  - Deny pet projects that are not sound.
  - Insist on alternative quotes.
  - Control Actual Expenditure as the project progresses.
Improve Debtor Performance
- Offer Cash Discounts
- Trade for Cash Only
- Improve Credit Control Procedures
- Review Ageing of Current Debtors regularly
- Settle Disputes Quickly.
- Factor Debtors profitably
Improve Stock Performance
- Write off and sell obsolete and damaged stock
- Employ minimum/maximum stock targets to control and order replenishments
- Ensure stock levels remain balanced in relation to sales.
- Use sound production and scheduling methods
- Avoid stockholding responsibilities - buy on consignment
- Hold part manufactured stocks pending receipt of orders
Improve Creditor Efficiency
- Ensure that you are buying at the best price / quality available
- Negotiate higher discounts and extended payment terms.
- Favour reliable and short lead-time suppliers