Posted: March 30, 2016 by Robert Craven
I recently shared Profit Improvement Hacks #1, with the first six hacks (A similar list is in the new Grow Your Digital Agency book.)
In case you missed that article read here.
Here are the final five.
Profit Improvement Hacks #2
Increase the number of purchases by each customer by 3%
– upsell, upgrade or whatever it takes to increase the average number of sales or sales value by 3% per customer
Decrease overheads by 3%
– is there any way you can increase effectiveness or reduce cost by 3%. Check every line in your P&L and ask if you are really getting the best value
Sort under-performing clients, products, suppliers, staff (sack 5%?)
– try and fix your under-performers. If you can’t fix them then sack them (ideally you do this legally)
Pull in cash 10 days faster
– another processes piece, just get more vigilant with collecting any money owed. After all it is your money and they did agree to pay you. You are not, after all, a bank!
Spend cash 10 days slower
– just slow down the cash leaving the business. Take advantage of any credit terms that supplier’s offer – pay when required not ASAP.
We have put these kinds of measures into many business. The compound effect is quite remarkable on the bottom line, the cash-flow and the general attitude within the business. It is a real mojo-primer and should be part of your strategy now!