Many can wonder what the secret is for companies like Apple or Google or Reliance to always be profitable and secret to grow big from a small company. This article explains 4 ways to run business with profitability.
- Optimum Resources – Keeping resources to optimum level ensures smooth business operations and also unwanted losses can be avoided. Some manufacturing companies lose productions or face delays due to short of resources, whereas few companies from service industry face sales loss. Similarly having excess resources adds up the cost.
- Balancing Resources, Operations and Sales – It is easy to say but hard to maintain the equation of resources, operations and sales. Success of any business depends on its profitability. If company makes any profit it survives and has chances to grow, if company makes nil profit then there would be question mark of its future, if company makes loss then it is as bad as not doing a business. Below three situations can justify the profitability or loss in any business:
RESOURCES = OPERATIONS = SALES -> PROFIT
RESOURCES > OPERATIONS = SALES -> LOSS
RESOURCES > OPERATIONS > SALES -> BIG LOSS
- Upgrading Technology – For sustaining any business you need to be competitive in the market or industry. Without upgrading technologies big companies like Nokia failed. With new inventions product or its features keep changing , without acquiring new technology new product can not be made available to your existing customers and this gives chance for your competitors to get ahead of you. It is always better to emphasize on R&D for technology upgradation rather than having sales loss or low profitability in business.
- Growth plan – Best way to survive in a business is growing the business with adequate profitability. Growth plan can cover your small losses, reduce costs, increase revenue and profitability. For making a successful growth plans one must consider above three points.
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