You have been running a business for a while, but profits seem to be elusive. Instead you are incurring huge debts and making losses year in year out. How can you turn around your business? Here are a few tips to help you steer your company away from losses and towards profits.
Do the Math
First step is to calculate your income and expenses to analyse what your margins are. To do this you can seek the help of a professional accountant or auditor.
Draft a Plan
What would you like your financial picture to look like in say a year? If you have a debt, work out a plan on how you are going to repay the debt and in what period of time. Also plan on where you intend to take the business in terms of customer number, sales and employees.
Reduce Overheads
One of the reasons you are making losses is probably because your expenses are too high. It is important to work within your budget. You can for instance move to a cheaper office, trade the expensive furniture for something within your price range or even lay off some employees and hire on part time basis. This should leave you with some extra cash.
Outsource Services
Another means of reducing your expenses is outsourcing. For instance, if you are a manufacturing company you can outsource transportation services. By hiring another firm to transport your goods you reduce the risks and expenses that occur like say when a vehicle breaks down or drivers cause an accident.
Market Your Products
Want to sell? Then tell the world about it. The secret is to get more clients and make more sales. This will boost your income. You will have to spend more time, energy and resources marketing your products and services. This does not necessarily mean spending millions on Newspaper and TV adverts. You can use social networking sites, as well as email to market your products. More on online marketing: market-your-business-online
Be Patient
Business experts will tell you it does not take a day to turn around a business. Be patient as it might take a while before you start seeing ‘real money’.
Image: Globe And Dollar Rotating Arrows by Renjith Krishnan on www.freedigitalphotos.net
simon
March 28, 2011
In Uganda, there are many youths who have completed an understandable level of education good enough to handle business, but do not have start up capital. Yet the majority of advisors would tell these youths to borrow from financial institutions, but these institutions need collateral. The other way wouled be relatives, but to get one who can lend you 100,000 shs is very difficult. Please tell us the secret of these Ugandan tycoons who claim to have scratched funds from nowhere.
Samuel Owusu
March 31, 2011
I will like to start a frog farming in westing Africa, I need more information as to how to go about it.
EMILY
April 1, 2011
I run a marketing agency in Kenya.
I would want to form a partnership to help raise capital for growth and expansion into the East African Region.
Any advice?
Edna
April 9, 2011
Go to Daraja Mbili and get them, walk them around, for sure you will get customers and always smile.
Florian
April 21, 2011
I’m planning to start a business of a guest house, help me to know how to keep this business growing.
Jefferey Spece
February 28, 2012
I have a few questions. How can I use this in every day life? Will it help me to use what you’ve outlined here?
Robbie Petronio
April 4, 2012
I am no longer certain where you are getting your info, but good topic. I must spend a while studying much more or figuring out more. Thank you for great information I was on the lookout for this info for my mission.