Know that one of the main challenges of every business is to also understand what actions can be taken to increase the company’s turnover, as well as analyze how it can influence other issues such as profitability.
We then prepare some tips for you to make it possible. Follow us!
1. Do not just look at billing
The first tip is about something we’ve already talked about here: do not look alone at the billing. As it was presented, the company may be doing very well, but its profitability may be well below what is necessary. So it will not do any good if the billing is gigantic if it is having a much greater expense than it. We already know that this could lead to bankruptcy, because if the costs are higher than the billing, the losses that will be generated month by month may lead to this sad end. So, look at billing together with other financial metrics. This is the first step for you to understand how your company’s financial health is, so you can focus on increasing your bottom line.
2. Learn to deal with the “balance point”
One of the ways to broaden the view on the financial health of the company and not only looking at billing, is to understand the concept of break-even business. The break-even point is quite simple, it represents the amount of products that the business needs to sell or services it needs to provide to match revenues with expenses. Thus, a minimum number is determined so that it does not suffer loss.
Here’s an example to make it easier to understand: if the company has spent $ 5,000 every month and sells a product for $ 500, it will need to sell 10 units to reach break even. Therefore, the company will start to make a profit when it can market more products than is determined by the break even calculation. With this data in hand it will be possible to analyze your company’s turnover is at an acceptable level and focus on strategies to increase it.
3. Review your profit margin
Well, one of the ways to increase your revenue is to analyze your profit margin to see if you can increase it. Therefore, increasing your profitability, consequently the billing will also increase, since one of the ways to do this is to increase the margin, which will reflect in the price. That is, if before my company sold a product at $ 100 and is now selling at $ 200, it more than doubled its billing. Obviously before you decide to do this you need to look at many factors, such as competition, consumer acceptance, among many others. To help you, you can use Billdu invoice app. If you use iPad, you can use Billdu invoice app for iPad.
4. Increase your productive capacity
Know that increasing the productive capacity of the company will also reflect in your billing. That is, if it can win in quantity of products produced or services rendered, the billing will increase in the same proportion. So check the feasibility of developing actions for this. In many cases, the company can even increase its production, stabilizing the costs, that is, in addition to the billing grow, the profit will also grow! Know that this can also be done by expanding your product portfolio or services. So, try to identify the opportunities that exist in this direction to contribute not only to the expansion of your productive capacity, but also to your sales!
5. Reduce costs
Finally, our last tip is to seek to reduce the costs of the company. After all, there are several scenarios in which this is possible, managing to reduce your expenses, or by passing this reduction on to the final product and thus, you can sell more.
Then, make a survey of expenses, see which ones are in excess and seek to talk with those responsible about what it is possible to do to reduce them.