By Suzy Kratochvil, Director of Training and Implementation for Tigerpaw Software
Profitability is always a primary concern of businesses — small and large alike. Other issues can often pale in comparison, because without profits coming in the door, the rest of your issues can quickly become a low priority. Ensuring consistent revenue and profitability can often feel like a juggling act. Nevertheless, there are some key factors that can help a business maintain and even increase its profitability. They are:
Set goals. Develop a solid, realistic business plan that includes specific business goals, key performance indicators (KPIs) and strategies for reaching each goal. Review it often and adapt the plan as your business needs, the industry or the markets change. Finally, don’t abandon your business plan at the first sign of trouble — stick to it and adapt the plan as necessary to make it work.
Know where you stand. Use reports to consistently collect and review your company's sales and expense data and frequently analyze those reports to spot trends, both positive and negative. After all, the sooner you identify opportunities and threats, the sooner you can act on them.
Stay customer focused. Customers are your greatest asset and best source of repeat revenue. Be sure to respect your customers by answering your phone, listening to your customers, knowing your products, resolving issues quickly and providing the level of service that makes customers feel important and appreciated.
Conduct regular checkups on your business performance by reviewing your key performance indicators and goals and adapt your strategies and tactics accordingly. Take advantage of the real-time insights offered by your professional services automation and remote monitoring and management tools to make better business decisions every day and you’ll soon be on your way to increasing your profitability.