9 Principles to Make Your Business Profitable
Learn how to map out your business correctly in order to increase your profit. Roger Knecht, President of Universal Accounting Center, shares the nine principles that will help you identify your business challenges and opportunities.
Roger Knecht, the President of Universal Accounting Center (UAC), has extensive experience in marketing and management, and has played a key role in launching and growing thousands of businesses.
How to determine the profitability of your company?
There are three areas that exist in every business that determine its profitability: marketing, accounting, and production. As a business leader, you need to understand that the more you can work on each of these three to collaborate and work together, the more you ensure profitability.
“Sometimes we get distracted away from the most important part of the business: making money.”
Learn about the principles that will help you address the short, mid, and long-term goals of your business.
1. Marketing
Nothing happens until you make a sale.
There are a lot of things going on in the organization and sometimes we get distracted away from the most important part of the business: making money.
A deal is only good if it’s good for both parties.
Reflect regularly and ensure that the pricing is correct, the offer is accurate, and that the customer is being taken care of.
Growing your business geometrically.
Find those missed opportunities, and what more you can provide that may become an additional revenue stream for your business.
“Focus on those things that make it so that you have the funds necessary to run the business.“
2. Accounting
Cash flow, cash flow, cash flow.
Focus on those things that make it so that you have the funds necessary to run the business. You should be able to pay your bills from the revenue generated from the sales coming in.
Know your business.
Too often in business, we don’t spend enough time on the financial reports and all the other numbers that exist in the organization, the key performance indicators that determine how the company is performing. Be sure you’re not neglecting this essential part of running a business.
Planning for tomorrow.
There are a variety of things that you can do as an organization to get the funding, the cash flow, and the lines of credit that are necessary to run your organization. Make sure you make this a priority. Learn more about the subject and consult the right people.
“Work on improving the organization’s efficiency to enable more profitability.”
3. Production
Pouring on the communication.
Work on internal communication with your employees, but also communicate with the customer. This will help you set and manage expectations and over-deliver products and services.
Improving internal processes.
With technology, there are so many things that we can be doing differently today. Work on improving the efficiency of the organization to enable more profitability.
Taking what you have and making it better.
Look at what you can do to over-deliver on your product and make the lives of your customers and employees better. That’s the process that you need to consider and evaluate regularly.
*The purpose of this page is solely to provide information and should not be considered as financial advice
**Melio does not provide legal, tax or accounting advice; you should consult a professional advisor before making any financial decisions.
