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 keep business always profitable.
1. 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.
2. Balancing Resources, Operations, and Sales
It is easy to say but hard to maintain the equation of resources, operations, and sales. The success of any business depends on its profitability. If a company makes any profit it survives and has chances to grow if the company makes nil profit then there would be a question mark of its future, if a company makes a loss then it is as bad as not doing a business. Below three situations can justify the profitability or loss in any business:
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RESOURCES = OPERATIONS = SALES -> PROFIT
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RESOURCES > OPERATIONS = SALES -> LOSS
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RESOURCES > OPERATIONS > SALES -> BIG LOSS
3. 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 R&D for technology upgradation rather than having sales loss or low profitability in business.
4. Growth plan
The best way to survive in a business is to grow the business with adequate profitability. A growth plan can cover your small losses, reduce costs, increase revenue and profitability. For making successful growth plans one must consider the above three points.
Hope you liked this article would help you to run your business efficiently. please do write your feedback and suggestions in the below comment section.
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