Bottom line under pressure? You need a combination of more sales, better financial management with a dose of creativity.
You can have as many fancy, complex definition of a business’s bottom line as you want but it comes down to this – it’s how much money you make when all your bills and overheads are paid.
Keep your overheads low and a tight grip on spending and investment, and you should have a healthy bottom line.
But there are times when it feels that no matter how good you are at budgeting, that the bottom line is being squeezed from the black into the red. Making a loss weakens your business considerably, the effects of which can take a considerable amount of time to bounce back from.
Improving your bottom line is a combination of making more money with more buying customers, keeping overheads to a minimum but also being proactive in ensuring your business and its staff operate efficiently.
And this is why you need these business admin hacks for growing your bottom line…
#1 Paperless Business
This is a great idea not only for saving you money and hassle, but also for saving the environment.
We live in a digital age and this means producing less on paper. Some businesses have gone completely paperless but others have significantly reduced their consumption of paper.
You don’t just save on paper costs either; you use less ink and less electricity printing documents and so on. With cloud-based computing in which files and documents can be shared and edited freely, there is less of an excuse not to go completely paperless.
#2 Cloud Computing
The digital age has revolutionised every aspect of our lives and the same goes for our businesses too. We alluded to this in the first point but cloud-computing is here to stay.
With various platforms offering cloud computing services, there are an array of channels and services on offer. Most are offered on a ‘pay as you go’ basis, perfect for when you need to scale up or down.
Business Admin courses that cover business budgets and balance sheets, will reiterate the importance of flexibility within a budget. In the past, you will have signed up for a contract over a certain length of time, the likelihood being that within a few months you were either paying for too much or too little, with little possibility of changing it.
Cloud computing allows so much more flexibility and economy, worth serious for any business looking to save money.
#3 Leads into Paying Customers
When orders roll in, we pay little attention to the sales funnel. If you are looking to improve your bottom line, you can economise and cut back all you like but if you are not working on converting leads into customers then only part of the problem is being dealt with.
Task your sales team with converting more leads into customers and create a reward system for those that meet and exceed targets. Work on your sales funnel consistently.
#4 Bundles, Packages and Deals
When was the last time you look at your pricing? When was the last time you re-vamped your product and services and, more importantly, the way you offer them to customers?
A change is as good as a rest so why not play around with what you have, and create bundles, deals and packages that customers will buy?
#5 Stretch Sales
When someone buys something from you, do you offer anything else after the sale?
For example, if there an after-sales maintenance service, retainer package and so on that you could offer customers?
It needs to be value for money not only for your customer but for you too. Look at other business model, such as the retainer type services offered by legal businesses and practices. Is there a principle of a mode of operandi you could use?
#6 New Markets
Exploring the possibility of new markets is also an ongoing process that you should be doing consistently, monitoring marketing conditions ensures you can see the next big thing, and the part your business can play in it.
But you may also want to consider your market in another light. The internet gives us a global market, to the detriment of the local geographical market in some instances.
Explore new markets online but don’t forget your physical location – are their customers close by that you could create relationships with?
#7 Talk to Customers
We assume that we know what people want. But do we really know what our customers want from us?
Talking, listening and acting on what your customers are saying can make a huge difference to your bottom line because it sets you apart from your competitors. Isn’t that something we all want?