Would you like to earn more profits in your business?

The following is a list of ideas to earn more profits:

  • Reduce the amount of discounts you give. Depending on profit margins, you may have to generate $15 of sales to recover $1 of discounts.
  • Implement better inventory control. Inventory isn’t an asset. It’s a liability. You can’t stop the cost from running.
  • Develop compensation programs that reward your people for the right things.
  • Offer specials on higher priced, high value items.
  • Avoid a last minute crisis with proper planning.
  • Accelerate sales by announcing price increases way in advance.
  • Ask your vendors for ideas on how to control expenses.
  • Establish safety programs and provide bonuses for people who don’t have accidents. How big a bonus?  The bonus should be somewhat less than the workers comp savings you get by avoiding them.
  • Improve your hiring by establishing employee referral bonuses.
  • Develop a profit playbook. Sports teams have playbooks, why not all businesses? What if you saved every profit-growth idea you ever had?
  • Start measuring. That’s the way to improve profitability. What should you measure? Revenues, costs, quality, quantity and time.

Try the ideas in this checklist. They represent just a few of the many ideas that can be initiated in your organization to improve your bottom line.  The professionals at Payroll Management are here to assist you in achieving your business goals.  Speak with your account manager today about how we may help you reach new heights of profitability.

© 2014 Thomson Reuters/Tax & Accounting