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Increasing sales is not enough, you must be increasing profit!

It is important for businesses to avoid growth for growth’s sake, and make sure that their increased turnover leads to increased profits.

If your sale per unit doesn’t cover all costs within your business, and you lose money on a sale transaction, the more you sell, the more you will go backwards.

You must know what it costs to produce one unit of your product.

In our business, I need to know what it costs to provide one hour of time for each of my staff members.

Once you know the costs of producing one unit, you are ready to grow.

With this information at hand, and your profitable pricing been established, how do we achieve sustainable healthy growth? Here are some points to consider:

  1. Put Competitive Advantage First:

Why do your customers choose you over your otherwise identical competitors? Identify what sets your business apart from competitors. Is it exceptional customer service, innovative products, or streamlined processes?

Once you know this, let’s market it and gain even more happy customers.

  1. Make the Trend Your Friend:

Stay attuned to market trends and consumer behavior. What is hot right now, and where are consumer wants moving?

Adapt your offerings to align with emerging preferences. Whether it’s digital transformation, sustainability, or personalised experiences, embrace trends that resonate with your audience.

  1. Prioritise Profitable, Fast-Growing Markets:

Which of your products give you the highest profit margin? Let’s focus on selling more of those.

Not all markets are equal. Focus on segments that promise rapid growth and healthy profit margins. Research industry trends, customer demographics, and demand patterns to identify lucrative opportunities.

  1. Don’t Be a follower:

Merely keeping up won’t make you more profit. Aim to outpace your peers. Innovate, invent, and stay ahead of the curve. Be proactive in exploring new markets, technologies, and business models.

Enjoy a trip away with your partner to a trade fair in your industry and be the first in your market to sell a new product or service.

  1. Turbocharge Your Core:

Your core industry remains your foundation. Nurture growth within it. Enhance existing products or services, optimise operations, and deepen customer relationships. Sustainable growth often starts from within.

  1. Look Beyond the Core:

Diversification can be a growth catalyst. Explore adjacent business areas. Consider strategic partnerships, acquisitions, or new product lines. Diversifying intelligently can mitigate risks and open up fresh revenue streams.

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