HOW TO INCREASE PROFITABILITY IN YOUR BUSINESS
Posted on 6th July 2018 by Chris Grieve
We recently conducted our first in a series of free information sessions discussing issues and opportunities facing business owners. This particular seminar was entitled “How to increase profits in your business”.
On a wet and wintery night the session was well attended and we thank those that braved the elements to come along.
The evening was a relaxed affair starting with a discussion on ways to target specific areas of your business in an effort to improve its profitability. These included:
- Improving the way your financial information is displayed so that it is simpler to interpret as well as highlighting areas to focus on,
- Identifying the key drivers within your business and understanding the interaction between balance sheet, profit and loss and business cashflows,
- Strategies to improving a business’s gross profit such as pricing strategies, benchmarking supplier discounts,
- Strategies to improve stock control such as regular stock takes, analysis of stock level requirements and controlling who can buy stock internally,
- Measuring and controlling our debtors by providing quotes and upfront agreements and having an agreed debt collection policy,
- Discussing the importance of people and culture within a business and how to incentivise your staff,
- Strategies for increasing the ultimate sale price of your business; and
- Showing how small changes in your business can have significant impacts on your profits and business valuation.
The evening concluded with drinks and food and an informal discussion between participants on the challenges and successes they have had in their respective businesses.
If you are facing challenges within your business or wish to improve your profitability, we at GeersSullivan have developed a program to identify and address the area’s that require improvement which we call “Financial Fitness Bootcamp”. Alternately, you may wish to develop a regular monitoring system of results within your business to ensure you are interpreting your key financial drivers correctly and in a timely fashion.
If you are interested in discussing the above further contact one of the Directors at GeersSullivan and arrange a meeting today.
We look forward to the next information evening which we will circulate on social media and via email.