Profitability in business is calculated by comparing what you’ve brought in as revenue to what you paid out in costs. Therefore, you have two approaches to increasing profitability: 

1. Bring in more revenue

2. Cut costs

The most successful businesses combine both these approaches for optimum profitability, increasing revenue and controlling costs in all the areas where it’s feasible and won’t impact negatively on the company. If you haven’t looked at how much you’re potentially wasting by not being streamlined enough, take some time to analyze where your money is going and look for sensible ways to reduce your costs.

Examine your processes

You may have been limited by finance or lack of knowledge when you first set up your business and adopted processes that weren’t as efficient as they could have been.

Or technology and working methods may have advanced so much in only a few years that you’re in danger of being left behind if you don’t adapt.

Even if you feel confident that all is running smoothly, don’t take it for granted. Get stuck into a review of all your operations to see which could do with an overhaul.

Streamlining office processes

First of all, how well is your IT system coping with the pace of life? Does it still perform the functions you require at a decent speed and provide you with the right information?

You may be due for new software, or even a whole new system in some cases. Don’t automatically upgrade to the newest version of your existing software though. Take time to look at all the options and calculate which offers the best solution to your specific needs.

Are you using automation as much as you could be? There are numerous tools available online that you can use to automate many functions, including your social media sites and web pages.

For example, the ad tech software from Revive Ad Server enables you to manage the advertisements on your website, ensuring they’re changed regularly and are having the desired effect of drawing people in to purchase from the site.

Streamlining working processes

If you have staff, what are their responsibilities? Have your team’s duties, and knowledge levels changed, and are they still able to contribute fully to the job they’re doing?

You might need to initiate some training or redeployment to make the most of your staff’s talents and abilities or consider alternative ways of working. Do you need to have all your team on site for instance, or could you cut costs by allowing some of your staff to work from home?

If you need new staff, would it be more economical to employ freelance workers rather than take on another employee? Are your staff working productively, and do any of their processes need updating?

The more you streamline your business, the less trouble you’ll encounter and the lower your costs will be. You may not be looking at major changes, but every small alteration makes a significant impact on your overall profitability.