Focus on Business Growth
Having achieved and maintained the cost cutting measures introduced to your business here are some key pointers towards ensuring future growth & profitability:
1. Product / Service Profitability
• Proper consideration of the true costs & profits associated with each product/service will show the optimal sales mix from a profitability perspective.
• Review your purchasing policy for potential savings and consider outsourcing as a means to reduce certain overheads.
2. Customer Profitability
• As above consider the true costs including the cost of delivery & credit terms in assessing this measure.
3. Sales Revenues
• Identify lost revenue opportunities such as free delivery/storage/advice or after sales opportunities (service contracts) and determine whether these should be ceased or charged at a fair price to improve revenue.
• Understand your market, its customers, your cost base and product dynamics (margin ‘v’ volume) in order to correctly price your offering.
5. Sales & Marketing Focus
• This is the ideal time to take stock of where you are, the customers you have and most important where you want to go with the business and the customers you want to target.
• Assess your marketing investment in the past and the value you received from it.
• Step back from your business and look at your business with “fresh eyes” – do you like what you see and would a new customer buy as a result of what they see.
• Focus on targeting new customers and set out a plan to detail how you will target the customers. This can be difficult especially when you are so involved in the business so consider a review from someone independent.
• At Amatino Partners, we offer a free marketing consultation which will help focus your efforts and develop solutions to target new customers. (Call Grainne Brady on 047 84955 if you are interested in arranging a consultation.)
6. Business Insight
• Ensure that the information on which you base the pricing is accurate, relevant & timely. Business owners must assess not only the quality of information available but also the appropriateness of their KPIs and the ability of the management team to understand the cross functioning of the business (strategic, operational & financial considerations)
Having made the cuts to survive the downturn businesses must now look to the future and ensure that they are best positioned & focused to take full advantage of all future opportunities.