Profit Margin Mastery: 5 Key Tactics for Business Success.

As a small business owner, you always look for ways to improve your bottom line and increase profits.

There are some fundamentals that sometimes get overlooked that will help increase your profits, without too much effort.

When was the last time you reviewed these basics?

The easiest way to track your business’s spending for a month is to get an idea of where your money is going.

Accountability is an essential part of the business - only businesses with good accountability can trace all the expenses.

The best way to double-check all the expenses is by creating an audit team that will look after the expenses and highlight if there is any loopholes in the operations.

It might surprise you how much you spend on things not essential to your business.

Any business needs to calculate the prices of its products carefully.

If the prices are too low, you may not be making enough profit on each sale to sustain your business.

On the other hand, if your prices are too high, you may be pricing yourself out of the market.

It is essential that finding the right balance is key to maximising profits.

As part of your marketing meetings you should be reviewing your pricing every quarter or at least annually.

If your costs have gone up, and / or competitor prices, now might be a time to increase yours.

Streamlining your production process can eliminate waste and reduce the time and resources required to produce your product or service.

This can lead to substantial cost savings that can be passed on to your customers through lower prices, or to you with increased profits.

Nowadays, it is necessary for businesses to invest in marketing because it doesn't matter how good the product is.

It will not sustain itself if it is not marketed properly, and you will miss out on potential sales.

Increasing your marketing efforts can help you reach a wider audience and generate more leads, resulting in more sales and higher profits.

Especially in challenging economic times, as many nations around-the-world are going through, many marketing experts advise you to increase your marketing budget in a recession, not decrease it.

If your competitors decrease theirs, now is a good time to grab marketshare and be in a better position when the economy recovers.

In every business, employees are considered to be the most valuable assets.

Your business spends significant time and funds to train a newbie into skilled worker.

It’s best to ensure they are skilled and happy employees, to prevent them from switching to other companies.

Having a high employee turnover suggests the company is not providing a pleasant environment to the employees, which will eventually affect the performance of the business.

Some studies suggest the cost of replacing someone can be 5 to 27 times their wage.

Invest in your culture, team wellbeing and happiness and become a Kick-Ass Manager, so your employee turnover beats your industry average.