10 Actions to Immediately Improve Profitability (Part 2)
Continuing from Part 1 of our profit improvement posts, here are the next 5 action items to immediately improve your profitability.
6. Better Deals From Suppliers
- Review your current supply contracts and take advantage of any discounts for prompt payment or extended payment terms.
- Seek competitive suppliers and get comparative quotes on prices and terms.
These may highlight the need for current contracts to be updated, re-negotiated or cancelled. Building relationships with your suppliers may also assist in negotiation of better deals/terms.
7. Building a Relationship With Your Banker
Arrange to meet with your banker to discuss your current facilities and business position. There may be better rates of interest available, reduced fees, more convenient ways to pay and/or the availability of credit to assist with cash flow.
8. Engaging your Employees
Engaged employees are more productive and committed to the business, which therefore has a positive flow through effect on business performance. The following will assist in increasing employee engagement;
- Effective communication
- Mentoring programs
- Delegating responsibilities
- Providing advance opportunities
- Empowering employees
9. Go Green
Adopting some environmentally friendly processes is not only good for the environment but will also lower operating costs. For example, go paperless, print double sided and making sure to switch off lights and computers at the end of each day.
10. Improving Productivity
There are only so many hours in a day and therefore productive days are important for efficiency and success. Develop a habit of starting your day with the most important task or the one you are most likely to procrastinate. Clean and sort your email inbox and make a task list that is prioritized based on urgency.
This article is being reproduced courtesy of The CFO Centre Australia and their business partners HLB Mann Judd.
Business Advisory Services
HLB Mann Judd