4 Powerful Strategies to Boost Your Bottom Line

In business, it’s not about the money you make but the money you take. Generating £100,000 in sales sounds great, but if it costs you £90,000 to get there then it’s not quite the impressive figure it initially seems. In order to hang onto more of your hard-earned money, you need to focus not only on increasing your revenue but also on spending less in order to do so. Controlling costs, being resourceful and working smarter, not harder, is the secret to increasing your profits. Let’s take a look at four strategies you can employ to boost profitability for your small business.

Increase Employee Productivity

Research by GoRemotely shows that productive employees equate to a 21% increase in profits. Therefore, as a business owner, it is in your best interests to ensure that you are getting the most out of your staff.

One way to increase staff productivity is simply to ensure that your employees are happy. A study by Oxford University found that happy employees are, on average, 13% more productive. On top of this, a study by Zistemo found that employees who are recognised for their work and receive regular encouragement tend to be more satisfied with their jobs.

Allowing and encouraging remote working can also increase employee productivity, too. When the world began working remotely in March and April 2020 due to the coronavirus pandemic, Prodoscore reported a 47% increase in productivity compared to the previous year.

It’s worth investing in comprehensive training programs to ensure that your employees are skilled at their jobs and working to the best of their ability. You may also want to consider productivity tracking software to identify your top-performing employees and highlight the ones who need extra support.

Smarter Marketing

It’s important to invest extra effort into marketing, but this doesn’t mean pouring money into fancy campaigns. Instead of throwing mud at a wall, you need to closely examine which marketing practices generate the biggest return on investment and then hone in on these strategies.

Don’t just look at growing your sales, either. It’s also important to find more cost-effective ways to achieve customer acquisition. This means that your costs will go down as your sales go up, resulting in bigger profits.

Cut Down Overhead Costs