By: Zina Abdulrahman, Arts and Entertainment Editor, The Pawprint
There are 4 key areas where you can improve your profitability ratio, that can help your business expand into new market sectors or develop new products and services.
- Managing your costs: Doing research to find better suppliers that will be more beneficial to your business than your previous supplier. Making sure you are using your overdrafts and loans correctly. Cutting production costs. Using the most of your space, maybe leasing instead of buying.
- Review your offer: Pricing considerations since the market is constantly changing, testing your prices is good. Finding your best/loyal customers, having a target market.
- Expanding your market: Doing research to see the best location to gain more profits, leading to the development of new products and services. Or teaming up with partnerships or joint ventures to expand to a new location will help reduce the costs.
- Finally, boosting productivity: All businesses can minimize wattage costs and still remain competitive, measuring the operational efficiency on an ongoing basis and acting upon that will put your business in the system of enabling your resources to stay on top of everything. Something like monitoring employee hours, making it more efficient, may significantly affect your profitability ratio as it will reduce costs.