Could You Unearth Hidden Profits in Your Company?
Unbeknownst to us, many a valuable thing may lie just beneath our feet. So it goes for businesses, which can discover unseen profits through savvy strategic planning.
Can your business become more profitable without venturing out of its comfort zone? Of course! However, adding new products or services may not be the best way for your business — or any company — to boost profits.Bottom-line potential may lie undiscovered in your existing operations. How can you find these “hidden” profits? Dig into every facet of your organization.
Develop a profit plan
You’ve probably written and perhaps even recently revised a business plan. And you’ve no doubt developed sales and marketing plans to present to investors and bankers. But have you taken the extra step of developing a profit plan?
A profit plan outlines your company’s profit potential and sets objectives for realizing those bottom-line improvements. Following traditional profit projections based on a previous quarter’s or previous year’s performance can limit you. Why? Because when your company reaches its budgeted sales goals or exceeds them, you may feel inclined to ease up for the rest of the year. Don’t just coast past your sales goals — roar past them and keep going.
Uncover hidden profit potential by developing a profit planthat includes a continuous incentive to improve. Set your sales goals high.Even if you don’t reach them, you’ll have the incentive to continue pushing formore sales right through year end.
Ask the right questions
Among the most effective techniques for creating such a planis to consider three critical questions. Answer them with, if necessary, brutalhonesty to increase your chances of success. And pose the questions to youremployees for their input, too. Their answers may reveal options you neverconsidered. Here are the questions:
1. What doesour company do best? Involve top management and brainstorm to answer thisquestion. Identifying your core competencies should result in strategies thatboost operations and uncover hidden profits.
2. Whatproducts or services should we eliminate? Nearly everyone in management has ananswer to this question, but usually no one asks for it. When you lay out thetough answers on the table, you can often eliminate unprofitable activities andimprove profits by adding or improving profitable ones.
3. Exactlywho are our customers? You may be wasting time and money on marketing thatdoesn’t reach your most profitable customers. Analyzing your customers andprospects to better focus your marketing activities is a powerful way to cutwaste and increase profits.
Get that shovel ready
Every business owner wishes his or her company could be moreprofitable, but how many undertake a concerted effort to uncover hiddenprofits? By pulling out that figurative shovel and digging into every aspect ofyour company, you may very well unearth profit opportunities your competitorsare missing. We can help you conduct this self-examination, gather the data andcrunch the resulting numbers.