Any business big or small, a mom-and-pop store or a global giant is all about maximising profit and performance. Because of the sheer volume of challenges they face, the larger sized business enterprises usually have in-house experts but the medium to smaller business enterprises don’t have that luxury. They can however maximise profit and performance of business with business advisory services.
A Business advisory service will usually begin by identifying and measuring the key profit drivers of the business. Once this task is completed, they will develop strategies to grow these key profit drivers while at the same time, keeping the costs at a bare minimal. After all, making any business more profitable involves increasing revenues without the proportionate increase in costs.
The next stage to maximising profits and performance of businesses with businesses advisory services is to formulate strategies to increase the sales revenues. There are several ways this is achieved for example:
Enhance staff productivity (and thereby decrease staff costs). Staff productivity can be enhanced by through performance reviews, teaching them productivity enhancement skills, having small functions in recognition of high-performing staff and rewarding them suitably.
Other revenue boosting measures that business advisory services will probably recommend include:
1.Development of new products or services probably through detailed surveys.
2.Expand area of operations to include new territories and therefore new customers.
3.Enhance customer service as it helps build brand loyalty and guarantee regular sales.
4.Making sure your prices adequately cover all costs including near future increase in wage bills, expected increases in fixed costs, expansion etc.
5.Incorporate seasonal discounts – consider seasonal sales to bring in increased seasonal revenue.
6.Create a new retailer scheme to get enhanced space for your products.
Costing cutting measures that Business Advice Services Parramatta will probably recommend include:
1.Decrease volume of inventory at shop floor especially if raw material prices do not fluctuate.
2.Decrease input costs by renegotiating rates with suppliers.
3.Consider upgrading equipment especially if the new equipment will enhance quality, reduce wastage, and reduce electricity consumption.
4.Consider alternate new raw material that might be better and cheaper.
5.Decrease overheads e.g. using lesser guards and opting for a mix of guards and surveillance cameras.
6.Decrease transportation costs where possible or hire bigger trucks to reduce per unit cost of transportation.
7.Identify non-profitable or not-so-profitable products and services and mark them for discontinuation.
In order to maximise profits and performance of businesses with Business Advisory Firm, they might also recommend that you start with strategies that yield quicker results and then slowly move down the line