By Rabison Shumba
Profitability is the fundamental reason why organizations exist. Without making a profit, shareholders will soon take their investment elsewhere. Every organization's desire is to survive for generations. It does not happen that way sometimes owing to lack of proper management and excessive expenditure. As a leader in an organization, I give you tips on how you can achieve maximum profits.
1. Hire and motivate employees - Your employee's welfare determines how much effort they put into the work you have given them to do. Employees will steal and lie if not looked after well. Motivation goes beyond the pay cheque. It also looks at other welfare issues, working conditions and benefits. It also looks at soft issues such as counseling services, assistance in hard times and so on. Motivated employees are more loyal hence you cut on re-training and inductions on new employees where because of low turnover. Always hire the correct people and place them into their areas of effectiveness.
2. Reduce unnecessary expenditure and keep accurate records - It is easy to lie to yourself about the health of the business. Correct records will point to the right decisions on how to keep the company afloat. You can not assume that all will be well just because invoices are being made. Keep an eye on leakages of money lest you lose the business totally. If you don't have an accountant, pay a specialist consultant to keep reviewing your accounts. It will not cost you that much in most countries.
3. Maintain your machinery - service records and plan for disaster recovery. You should regularly keep an eye on the machine that brings the money. Every machine should generate revenue enough for its own maintenance and surplus for running the business. Do not wait for a breakdown unless it is beyond human control. Be proactive with maintenance of equipment. Downtime must be managed through a backup or stand-by plan.
4. Sharpen your marketing - get witty ideas on how to get product out quicker. No matter how nice the product you make is, it needs the right marketing machinery to ensure that the customers' awareness level is raised. Hire the right people to deliver this service. You will be surprised and thankful you did so. You can market the product on your own. You can only reach so far. Get the specialist to do so.
5. Pay attention to quality - if you sell poor quality goods, people will not come back. Poor quality goods will increase rejects hence reduce profitability. Have people who check the quality of good in the production line and not wait for customers to complain.
6. Innovate all the time - Research and development as well as business development should be strong such that existence of competition still leaves you with you market share. Always find better ways to improve on service delivery, product quality and so on. Customers will stick by an organization that shows a concern for what they are pushing to the market. You can not relax on yesterday's sales. Check today why consumer expenditure is lower. It maybe the time to re-brand the packaging, find alternative packaging means and so on.
7. Minimize injuries and accidents - You need your employees to be fit and safe from harm. If you leave this issue unattended, injuries will happen. The poorer your safety record the more your reputation in the market is damaged. You will soon enough not have the labor necessary to give you the profits.
1. Hire and motivate employees - Your employee's welfare determines how much effort they put into the work you have given them to do. Employees will steal and lie if not looked after well. Motivation goes beyond the pay cheque. It also looks at other welfare issues, working conditions and benefits. It also looks at soft issues such as counseling services, assistance in hard times and so on. Motivated employees are more loyal hence you cut on re-training and inductions on new employees where because of low turnover. Always hire the correct people and place them into their areas of effectiveness.
2. Reduce unnecessary expenditure and keep accurate records - It is easy to lie to yourself about the health of the business. Correct records will point to the right decisions on how to keep the company afloat. You can not assume that all will be well just because invoices are being made. Keep an eye on leakages of money lest you lose the business totally. If you don't have an accountant, pay a specialist consultant to keep reviewing your accounts. It will not cost you that much in most countries.
3. Maintain your machinery - service records and plan for disaster recovery. You should regularly keep an eye on the machine that brings the money. Every machine should generate revenue enough for its own maintenance and surplus for running the business. Do not wait for a breakdown unless it is beyond human control. Be proactive with maintenance of equipment. Downtime must be managed through a backup or stand-by plan.
4. Sharpen your marketing - get witty ideas on how to get product out quicker. No matter how nice the product you make is, it needs the right marketing machinery to ensure that the customers' awareness level is raised. Hire the right people to deliver this service. You will be surprised and thankful you did so. You can market the product on your own. You can only reach so far. Get the specialist to do so.
5. Pay attention to quality - if you sell poor quality goods, people will not come back. Poor quality goods will increase rejects hence reduce profitability. Have people who check the quality of good in the production line and not wait for customers to complain.
6. Innovate all the time - Research and development as well as business development should be strong such that existence of competition still leaves you with you market share. Always find better ways to improve on service delivery, product quality and so on. Customers will stick by an organization that shows a concern for what they are pushing to the market. You can not relax on yesterday's sales. Check today why consumer expenditure is lower. It maybe the time to re-brand the packaging, find alternative packaging means and so on.
7. Minimize injuries and accidents - You need your employees to be fit and safe from harm. If you leave this issue unattended, injuries will happen. The poorer your safety record the more your reputation in the market is damaged. You will soon enough not have the labor necessary to give you the profits.
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