6 PRINCIPLES OF MAKING MORE PROFIT IN BUSINESS

HOW TO INCREASE PROFIT IN BUSINESS.

Apart from satisfying the need of the customer, it is the desire of every entrepreneur to make profit and continue to increase its profitability for the sustenance of the business. A business is likely to fold-up if not liquidate if there is decrease in its profitability but worse still when there is huge loss at the accounting year. After intensive research and consultation, we were able to gather the below guides that can help a business to increase its profit so as to be able to stay put in business as well as meet the expectation of its share-holders.

1. Find the need: ‘In scarcity there is opportunity’ -anonymous. There is need to find out what the customers need. For example in a higher institution, students need to make research, type their assignment and embark on other academic activity. A business opportunist should be able to establish cyber-café business centre where student should be able to do their online stuffs. Also you can discovered that accommodation is also a major issue in such environment, then as a business man there is need which should be provided and by this you make your money. So at every place and time an entrepreneur should be able to dictate a need that should be satisfied. Another example is a neighborhood where people are working class which may not grant them the chance of taking of their children. Such is also an opportunity for baby-sitting. What of an environment where pipe-borne is uneasy to come by, one can establish a water factory at such area and make profit. So for a business to increase profitability there is need to find out what need is to be satisfied.

2. Render quality service: service should not just be rendered but must be seen to be of high quality. Taste, choice and lifestyle are tripod that changes in the business world. No customer will settle for less. There are varieties of choice as competition continues to increase. As a business entity, there is need to research on the latest brand so as to enjoy your customers continues patronage. Excellency should be the watch-word, of any entrepreneur. For example if you are building a house for rent, these parameter should be considered: electricity, borehole, security, materials used for building etc for a qualitative accommodation. So to every service provider, there is need to render a quality type for higher profit.

3.  Sell at affordable price: In as much an entrepreneur is in business to make profit, there is need to sell at affordable price. There is competition in the market, customers only patronize the product that they can afford. For example, at things being equal, if two water factories sell at N200 and N250 dollar respectively, customers will buy the affordable one. An entrepreneur must ensure that the business product must be affordable.

4. Sell at discount: ‘The more you buy the less you pay’ an entrepreneur must offer discount to customers that buy more of the business product. This will attract more patronage from the customers; hence increase profitability.

5. Minimize bad debt: even though selling at credit is one business strategy that increase sells; but an entrepreneur must ‘pursue his creditors’ using every available strategy to make creditors to honor, their promise, even if is to offer them discount for paying earlier.

6. Account management: an entrepreneur must minimize expenditure and increase revenue. Money should only be spend on necessity not on frivolity. Business activities must be towards increasing revenue; thereby there will be increase in profitability.