When I first begin working with a business to improve profits, we start looking for the low-hanging fruit first. Just like when you are picking fruit from a tree, some fruit is low-hanging and easy to get to. At ground level there will be some fruit you can just reach up and take without a lot of effort. However as you move further up the tree the fruit will be in harder-to-reach parts which may require climbing, or the help of a ladder.
The same principle applies to business. We are all busy and the reality is that if we look around the business there are literally dozens of things that could be actioned to improve profits. But the fact is, it is unlikely you have the time to action a dozen changes, certainly not in the short term anyway.
Here are some examples of low-hanging fruit I have seen in businesses, which, when actioned, had a dramatic effect on profit:
Negotiating with suppliers - Look at the pricing from your largest suppliers and compare with their competitors. Then renegotiate better buying pricing to increase your margins. Often with suppliers they supply pricing to a business, the business grows but they are still on old pricing based on smaller volumes.
Approach old customers - Start approaching the old customers who have not brought from you for a while. A number will buy from you again if you just ask.
Tell your customers about other products - Start offering your existing customers products/services they are not currently buying. Most will not even know what else you can do for them.
Shop window - In retail, displaying specials, new stock, or add-ons that goes well with products you sell a lot of, will entice customers to buy more, and bring new customers through the door as well.
Collecting the money - Instructing your accounts person to make a few phone calls to chase up outstanding debts can make a big difference. Holding them accountable to do this job takes only minutes.
Invoicing on time - Many businesses do not invoice on time and it causes problems down the line. This may not give you more profits directly but you will certainly have more time and less stress without cashflow headaches.
Pricing - Simply increasing your prices by a small amount will make a big difference to your profits and in most cases your customers will not even notice.
Promoting your best sellers - Identify your best selling products, and products that have great margins. You can easily promote these (for example in an email to your customer database, or on your Facebook page) - and sell more of them.
Regular staff meetings - If all your staff a) feel appreciated and encouraged regularly b) know what is expected of them c) know about your latest specials and where you are heading as a business - this will result in more efficient staff, more sales, more profits.
These are just a few examples. Take a moment to ask yourself "what is the low-hanging fruit in my business?" and "what are the easy wins that will increase our profits dramatically without a lot of effort?"
Remember, business does not have to be complicated. Even if you do not have a lot of time or energy, you can still be making small positive changes to improve your business. There are always some things we can do to improve that are quick and easy. So reach out and grab what you can get! I promise you the rewards are delicious!
The same principle applies to business. We are all busy and the reality is that if we look around the business there are literally dozens of things that could be actioned to improve profits. But the fact is, it is unlikely you have the time to action a dozen changes, certainly not in the short term anyway.
Here are some examples of low-hanging fruit I have seen in businesses, which, when actioned, had a dramatic effect on profit:
Negotiating with suppliers - Look at the pricing from your largest suppliers and compare with their competitors. Then renegotiate better buying pricing to increase your margins. Often with suppliers they supply pricing to a business, the business grows but they are still on old pricing based on smaller volumes.
Approach old customers - Start approaching the old customers who have not brought from you for a while. A number will buy from you again if you just ask.
Tell your customers about other products - Start offering your existing customers products/services they are not currently buying. Most will not even know what else you can do for them.
Shop window - In retail, displaying specials, new stock, or add-ons that goes well with products you sell a lot of, will entice customers to buy more, and bring new customers through the door as well.
Collecting the money - Instructing your accounts person to make a few phone calls to chase up outstanding debts can make a big difference. Holding them accountable to do this job takes only minutes.
Invoicing on time - Many businesses do not invoice on time and it causes problems down the line. This may not give you more profits directly but you will certainly have more time and less stress without cashflow headaches.
Pricing - Simply increasing your prices by a small amount will make a big difference to your profits and in most cases your customers will not even notice.
Promoting your best sellers - Identify your best selling products, and products that have great margins. You can easily promote these (for example in an email to your customer database, or on your Facebook page) - and sell more of them.
Regular staff meetings - If all your staff a) feel appreciated and encouraged regularly b) know what is expected of them c) know about your latest specials and where you are heading as a business - this will result in more efficient staff, more sales, more profits.
These are just a few examples. Take a moment to ask yourself "what is the low-hanging fruit in my business?" and "what are the easy wins that will increase our profits dramatically without a lot of effort?"
Remember, business does not have to be complicated. Even if you do not have a lot of time or energy, you can still be making small positive changes to improve your business. There are always some things we can do to improve that are quick and easy. So reach out and grab what you can get! I promise you the rewards are delicious!
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