Step up your game !

Every business owner wants to boost profitability. This requires disciplined approach towards achieving defined objectives. Improving profits is an all-round process which involves majority of following steps (if not all) depending upon the size of business:

• Assessing existing business’s financial health.
• Working out real profit margin of individual products and services.
• Identifying most profitable customers and most reliable and cost effective suppliers.
• Introducing financial discipline through budgets.
• Improving working capital management involving cashflows, receivables, payables and inventory.
• Improving operational control through the introduction of standard operating procedures i.e. SOPs.
• Introducing performance measurement techniques i.e. Key Performance Indicators (KPIs).
• Identifying risks and implementing risk management / mitigation strategies.
• Evaluating debt to equity ratio. Is business using too much of expensive financial resource ? What is the ideal mix of debt and equity?
• Improved and productive banking relationships.