On the whole, there is only one reason why people go into business and that is to make money. Regardless of the industry they work in or the products or services they offer, everything they do is to make money and watch their profits grow.
Of course, business is not as clear cut as that as it can prove challenging to make a profit from the start and even then, business can prove volatile which means earnings can change from one week or one month to the next. Despite this, every business owner is going to want to make sure that they are making a profit but how can they do this?
Manage Your Costs
This is one of the most obvious ways to ensure you are making a profit but it might be the one that people lose track of. Whether they are a sole trader taking on job after job, or a large business that takes a lot of money, yet has wages and other costs to consider. With all of this requiring proactive management, it can be very easy to lose sight and lose your way. Once you lose track of what money is coming and what money is going out, you can soon lose sight of your profits and begin making incorrect decisions.
Therefore, if you are a restaurant or a takeaway, using an EPOS till system provider such as XEPOS will enable you to actively manage your takings by running reports from the system. This accurate system will allow you to see in real-time how much has gone through the till, giving you a more accurate insight into how much money your business is taking. The same can be said for a range of other businesses such as retailers.
Sell the Right Items
From restaurants to shops and everything else in between, it can prove to be too easy to sell as much as possible. So you could have a menu that is full of dishes or a shop that sells almost every item of clothing imaginable, however, this doesn’t guarantee profits. By having stock readily available or ingredients ready to go costs money and if you don’t sell them then your profits are going to be affected.
It makes sense to strip things back and identify what sells well and what you sell the most of. Whether you sell more trousers than underwear or more fish dishes than curries, it makes sense to have access to the information that matters. Therefore, having access to a touchscreen till from XEPOS will give you access to information that can tell you what you are selling, what’s underperforming and what could do better. All of this useful information can help you to choose what performs best and what can help to boost your profits.
Consider your Suppliers
Your suppliers are going to charge you a premium for providing their services and that almost goes without saying but are they adding value to your business? Do they have the items available when you need them? Are they letting you down and preventing your business from thriving because they are not delivering on every level?
It’s always worth asking your suppliers if they can offer better prices on things you purchase more of which ties in with understanding what you sell more of. If you sell more hats that scarves then ask if they can provide you with a better price if you purchase more. Sure, you are going to need to spend out more to purchase more but then you have the scope to cut back on those items that aren’t selling so well.
Get Your Prices Right
There is a very fine line between increasing prices and keeping customers happy. However, this can take some work to get right but if you do then you will reap the rewards. There are two ways to achieve this and the first is to drive down your supplier prices where possible as this will give you more room in which to play around with your figures and will also increase your profit margins. However, you should also make sure that you do your research on this too. Consider the prices that your competitors are charging. Are they charging more or less? If less, then that gives you even more of a reason to find a new supplier or renegotiate with your current one. If they are charging more then you might have room to increase your prices slightly while still charging less than them.
Even a slight change in the margins will see your business grow its profits.
Offer Deals and Incentives
Many believe that deals and incentives are offered at a cost to the business but this doesn’t have to be the case. Maybe some products are not selling at the same rate as other products or perhaps some items are simply not selling at all? Whatever the case, you can begin to move stock and items by offering deals and incentives. Whether it’s 3 for 2, Buy One Get One Free or simply offering a discount, once you impress your customers, you are likely to see them spending more time at your shop counter!
Stay Connected with Customers
Even after a customer has spent money with you, you shouldn’t see that as the end of the relationship. In fact, if they have shared their personal information with you then it’s time to make sure that you continue to keep in contact with them. Emails and deals can make them feel valued and that is going to have them returning time and time again.
Profits in business are vital but there are many things that you can do to ensure you encourage customers to spend with you. Take the time to familiarise yourself and you’ll soon realise how simple it can be. Sure, you can’t force people to spend money but give them a good enough reason and make the right decisions and your business will thrive.