Would you like to make more profit in your business?
Often, when you are thinking about improving profit, you think of generating more sales and income.
Have you considered the other side of the equation – your expenses?
The best part about this is if you can save some expenses in your business it goes straight to your bottom line.
You cannot cut all your expenses or stop spending money because you need a base level of expenses to run your business. However, if you selectively target a few key expenses in your business and renegotiate with your suppliers, that can be a real win in improving your profit.
By doing so, you are still getting what you need but you are also doing it at a greater profit.
Here are four things to help you get started:
1) Start asking
If you don’t ask, you will never get what you want. You will be surprised at some of the savings that you can get just by asking.
2) Even small reductions can improve profit
Even if you can get a 2%, 5%, or even a 10% discount on some of your current suppliers, that can add straight to your bottom line. Think about the difference to your profitability over a year. Go for the small wins as they can make a big difference when they add up over time.
3) Do some market research
You do not necessarily have to go and change suppliers but make sure that you are getting a competitive, market-relevant price deal.
4) Change your buying habits
For example, if you have been ordering supplies on an ad-hoc basis, consider how much you can save by ordering supplies for the whole month or year. Most suppliers would be able to issue a better deal if you are buying in bulk.
The key here is to think about the areas in your business where you could be negotiating a better deal with your suppliers or changing your buying habits.