When it comes to making a profit, every business only has three variables. The cost of your product or service, the price you charge and the volume of sales.
In the latest business tip from E4A, this article looks at how you can make small incremental changes to your business that will grow your profits.
Most business owners and their teams are very busy working on their businesses and so have little time to make the changes needed to improve their profits.
This means that whether they want to or not they cannot put aside large amounts of time to develop their business but can only do it grabbing small amounts of time now and then.
This business tip shows you that small incremental change will make a difference and are worth doing.
The following graph shows the three variables of price, volume and cost and how after a 1 per cent improvement in price, volume and cost gives rise to a more than 10% growth in the profits of a business.
As a business tip the key thing to remember when following the strategy of making small incremental changes to your business is to do 3 things each day that will develop your business.
Depending on how you work either write down the 3 things the night before or do it over breakfast when you are energized and focusing on the day ahead.
The next important thing is to Do It Now. Procrastination is your worst enemy. Work with your teams in your business to train them so that they can find small incremental changes to developing the business and for the small detailed changes empower them to get on and do it. Get them in to the mind set of do it now.
Most of the changes you can make to your business that will grow your profits are no or low cost. If they are not, then you are focusing on the wrong things. For more background on these types of changes, look up “lean thinking” in the search engines.