Profit Improvement Hacks #1

Posted: February 24, 2016 by Robert Craven

We spend a lot of time at The Directors’ Centre talking about great customer service, how to facilitate business growth, the benefits of building strong business strategy etc. But at certain times of year, we hear “More profit!” being shouted from the rooftops.

So, I thought it would make sense to share my 11 Profit Improvement Hacks (A similar list is in my Grow Your Digital Agency book.)

 

Profit Improvement Hacks #1

Increase prices by 3%
– this goes straight to the bottom line. You might lose some clients and the ones who are buying on price alone (but you don’t really need them anyway!)

Decrease direct costs by 3%
– squeeze suppliers who haven’t been challenged for a while, “Is this the best price you can do?”

Increase number of leads by 3%
– more phoning, networking, talking, engaging…

Increase quality of sales conversations by 3%
– check the quality of how your business and your people communicate… is a sales course or a dealing with difficult people course required?

Increase quality of proposals by 3%
– when did you last update and modernise your proposal template and does it give the client what the client really wants?

Increase quality of ‘asking for the business’ by 3%
– get better at asking for the business and closing: that is about having the right skills and having the right processes in place.

Believe me, this works if you take the time to put the actions in place, the arithmetic is quite outstanding, a series of small changes one on top of the other can create a massive final impact. I know it is all a little tactical and short-term but it should give you the head of steam often required.

So, although I am a much bigger fan of evolution (putting in place long-term, sustainable changes), sometime a bit of revolutionary (high-energy) thinking can give you the quick cash-flow impact required!

Profit Improvement Hacks #2 to follow…