A business owner’s financial wealth is determined by his Net Profit. In simple terms, to avoid bankruptcy, you must become fully aware of your Spending and Debt habits. The Grand Law of Wealth as explained in one of the Simpleology Courses is “Increase Your Incomings and Decrease Your Outgoings”. As simple as it may sound, most of us are challenged in following this Law. Even though we may set a goal and implement several methods for increasing Incomings, we have no CONTROL and assurance that we will create that much income. However with proper education and mindset, we CAN and MUST CONTROL outgoings-such as Expenses and debts. This in turn will contribute to increase in Net Profit. In other words to avoid Bankruptcy, a business owner must focus on improving the efficiency of his business. Here are the five ways to improve the efficiency of your business and avoid Bankruptcy.
Tracking your marketing and MAKING improvements
Basically, every time you contact your prospect or customer, you are involved in the marketing process. The marketing process may be considered as a three step process, namely advertisement, Sales and Closing process. As a business owner, you must always find ways to move the prospect acquired as a Lead from your advertisement to the sales process and then from sales to Closing process quickly.
Automation has helped both Small and large businesses in improving the efficiency of their business. Data entry, Book keeping, Customer Service, Email marketing and Fulfillment are some operations that can be easily automated.
This may seem very obvious, but most often the business owners fail to track the cost while focusing on increasing their sales/revenue. You could have a system to monitor both expenses and income every week. You can reduce cost by eliminating a service that is no longer required or locating vendors that can give you better deal. The key is to be aware and create a system to reduce cost.
Offer Back end products to your current customers
It is far easier to sell a product to a current customer than to acquire a new customer. You could sell your own product or strike a deal with a business that sells to the same market as you do. This can be a win-win lucrative situation for both the businesses.
Increase profit earned per customer
There are several ways to increase profit earned per customer. You could use the following two methods.
You could increase the price of your product and thereby increase profit. This may seem difficult in the beginning, but you must take the bold step and do it anyway.
Offering package deals
You could combine two or more products/services, create packages and sell with higher profit margin.