Making a PROFIT

Profit is not a dirty word. It is essential for the survival of an organisation, the workers and your job.

          Whatever you make or do in business, if you don’t make a profit, you won’t last long.

          Profit must be the main goal for all commercial organisations. 

Five of the best tips on profit-making 

*  You need a strategy

          You need to know where you are heading and the things that might hold you back. Where do you want the business to be in 5 and 10 years time?

* The worst crime

          The worst crime against the workers and the shareholders is a company which fails to make a good profit.

* Keep overheads low

          To make a profit keep your overheads low. Practise thrift or things will drift.

          Don’t waste money on ineffective advertising.

          Try to increase customer satisfaction and referrals. Word of mouth is the cheapest and the best advertising available.

          Can you get cheaper raw materials? There are many ways to reduce costs. Make a list of possibilities and select the best choices.

* Watch your growth

          You need to make enough profit to finance growth without diluting the value of your shares if you have shares.

          You need to be able to innovate to survive and grow.

* Make a plan

          What steps do you need to take?

          Remember you are only as good as the staff you employ, mentor and train.

          Focus on strategic innovation. It’s about the ability to use surplus funds to invest and grow your business.

– Geoffrey Moss (mossassociates.co.nz)

“Learn from yesterdays mistakes, plan for tomorrow and aim for a solid future.”

Source: “Secrets for New Managers” first published by Moss Associates Ltd., New Zealand (www//mossassociates.co.nz), Cengage Learning Asia, Singapore. Also available as a hard copy and as an e-book from Amazon.com and VitalSource.