Doesn’t every business owner hope to increase profit margins in the new year of 2016? To be successful this year, make a plan and follow it. Below, we have some suggestions to help you start a plan.
Improving your finances requires one of two basic things, more revenue or fewer expenses. Here are some strategies that could help you increase revenue:
- Talk to your current clients and ask if there are additional products or services your business could supply.
- Examine your competition to determine if they offer products or services that you do not, but could.
- Evaluate price increases for your products and services. Investigate your competitor’s pricing to see if the market will allow it. Even a modest price increase can boost revenue.
- Consider expanding your territory, but remember to add new sales representatives who can cover the extra work.
- Examine your sales processes and people to be sure training is up to date and performance is in peak condition.
- Review your recent workers’ compensation claims to see if they are affecting your bottom line. Maybe you’re spending more time on employee issues instead of running your business.
- Study employee performance in the last year and be sure you are right-sized with the right people.
In addition to generating more revenue, perhaps you can reduce expenses. An essential and unavoidable expense at any business is Human Resources. If you are not already using a Professional Employer Organization (PEO), that might be an option to consider for your business. Outsourcing your human resource functions to a PEO could save you a lot of money.
Another unavoidable expense you need to cover is the Affordable Care Act, but by planning appropriately for it, you can save yourself from penalty fees. For 2016, companies that have 50 or more employees must provide affordable healthcare plans to at least 95% of their employees. As of the latest information from the IRS, you must report the cost of healthcare plans on W-2s by January 31, 2016, while other individual taxpayer forms 2015 Form 1095-B and 2015 Form 1095-C must be issued by March 31, 2016.
In addition to the financial considerations of human resources, your business success depends on a strong base of employees. Empower them by encouraging their input on operations, services, and promotions that could increase your profit. The more emotionally invested they feel in your business, the more productive they will be. We have many training courses to help improve employee productivity.
The rapidly increasing world of technology is great, but when it comes to introducing a new technology to the workplace, sometimes the initial installation of new technology can really slow down operations. Remember to factor in employee training when you change or add new technology. We can provide training to help morale, productivity, and revenue. Happy and well trained employees deliver better results than poorly trained, unhappy employees.
The marketplace is getting noisier all the time. There are so many ways to reach customers via the internet that it’s hard to keep up. Are you leveraging online marketing and social media? Is your website user-friendly? Do you have someone dedicated to increasing your online presence? These are all good marketing strategies, just remember to not be swayed by fancy-talking digital marketers. Every business is different, and some might see better results using traditional media, like print or broadcast, to reach their audience. Find the best ways to reach your target audience.
Find the Balance
Hopefully, your plans for 2016 will also include good time management and prioritization so you can enjoy having a personal life as well. Be intentional about what you spend your time on and be aware of whether you’re running your business or your business is running you. We can help
by shouldering the HR burdens for you.