It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong.Markets are designed to allow individuals to look after their private needs and to pursue profit. It's really a great invention and I wouldn't under-estimate the value of that, but they're not designed to take care of social needs.
Profitability is the basic reason why organizations exist. Without making a profit, shareholders will soon take their investment elsewhere. Every organization’s wish is to survive for generations. It does not happen that way sometimes owing to lack of proper management and extreme expenditure. As a leader in an organization, I give you tips on how you can achieve optimum profits.
1. Hire and inspire employees - Your employee’s welfare determines how much effort they put into the work you have given them to do. Employees will grab and lie if not looked after well. Motivation goes beyond the pay cheque. It also looks at other welfare issues, working conditions and benefits. It also looks at soft matters such as counseling services, assistance in hard times and so on. Motivated employees are more loyal therefore you cut on re-training and inductions on new employees where because of low turnover. Always hire the correct people and place them into their areas of usefulness.
2. Reduce unnecessary expenditure and keep appropriate records - It is easy to lie to yourself about the health of the business. Correct records will point to the right decisions on how to keep the company afloat. You can not assume that all will be properly just because invoices are being made. Keep an eye on leakages of money lest you lose the business completely. If you don’t have an accountant, pay a specialist consultant to keep reviewing your accounts. It will not cost you that very much in most countries.
3. Maintain your own machinery - service records and plan for disaster recovery. You should regularly maintain an eye on the machine that brings the money. Every machine should generate revenue enough for its own routine maintenance and surplus for running the business. Do not wait for a breakdown unless it is beyond human control. Be proactive with maintenance of equipment. Down time must be handled through a backup or stand-by plan.
4. Sharpen your marketing and advertising - get witty ideas on how to get product out quicker. No matter how nice the product you make is, it needs the right marketing and advertising machinery to ensure that the customers’ consciousness level is raised. Hire the right people to deliver this service. You will be amazed and thankful you did so. You can market the product on your own. You can only achieve so far. Get the specialist to do so.
5. Pay interest to quality - if you sell poor quality goods, people will not come back. Poor quality goods will improve rejects hence reduce profitability. Have people who check the quality of good in the production line and not wait for customers to grumble.
6. Innovate all the time - Research and development as well as business development should be strong such that existence of competition still simply leaves you with you market share. Always find better ways to improve on service delivery, product quality and so on. Customers will stick by an organization that exhibits a concern for what they are pushing to the market. You can not relax on yesterday’s sales. Check today why consumer costs is lower. It maybe the time to re-brand the packaging, find substitute packaging means and so on.
7. Reduce injuries and accidents - You need your employees to be fit and safe from harm. If you leave this issue unwatched, injuries will happen. The poorer your protection record the more your status in the market is damaged. You will soon enough not have the labor essential to give you the profits. .