Ten Tips To Boost The Financial Profitability Of Your Business

By Author: Gena Sanford
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In a context where making profits is more difficult than ever, here are the secrets of "making" strong profitability. Ten principles that Thierry Denjean, chartered accountant and entrepreneur, apply and recommends.
1 - Stick to Your Strategy
Many businesses start or move forward without any strategy. In this way, it is impossible to be successful. To build a profitable business, the first rule is to define a carefully considered strategy ... then stick to it! too many entrepreneurs backtrack and change course when the chosen policy does not pay off immediately.
After working for a few years in large audit and accountancy groups, Thierry Denjean has chosen to stand on his own feet. In 1992, he created his structure, Denjean & Associés. Twenty years later, it has 70 employees and is distinguished by excellent performance.
The latter, on the pretext that they have difficulty selling to the large companies which were their privileged target, decide, for example, to turn to SMEs. Or, they abandon their international development strategy when they face unexpected complications. It's a mistake: if you ...
... have defined a sound policy at the start, there is no reason to change it. Experience shows that a good strategy always pays off. So persevere!
2 - Offer quality
It is impossible to build a profitable business in the long term by adopting a policy centered on a low-cost strategy. A company which, in order to distinguish itself, mainly relies on prices below those of the market can be competed by any structure installed in a low-cost country; and as the products or services it offers are standard products or services, its customers will instantly drop it in favor of the first new entrant aligning more competitive prices.
Moral, whatever your activity, quality is your only real asset against the competition. If you are obsessed with delivering quality products or services, you will see the benefits on the bottom line of your income statement!
3 - Obsess Over the Margin

Today, almost all business leaders are obsessed with growing their turnover. There are several reasons for this. First, for a leader, it can seem more rewarding to be at the head of a company whose turnover increases from one year to the next. Then, with a growing activity, the company has the means to occupy its teams and to avoid the specters of partial unemployment and In addition to these factors, there is pressure from the banks: bankers do not appreciate that a company presents annual accounts with a turnover identical to that of the previous year, or even in decline ...But let's say it loud and clear: these are fallacious arguments that entrepreneurs should not be tricked into. Because what must obsess you is not your turnover, but your margin! In other words, you must imperatively focus on generating only high margin sales. To this end, you must regularly review your customer portfolio, in order to check that each one brings you sufficient profitability. If you are not making enough money with this or that client, make it clear to them, and let them know that you cannot continue working under these conditions. Does he refuse to pay more? Don't procrastinate and end your commercial links ...
I recommend repeating the analysis of your client portfolio every six months, and even every quarter if you can.
4 - Outsource your IT and Accounting
IT is a job you can lose a lot of money without realizing it. Why? Because a manager has the impression that he knows a little about his company's information system, 'he will be able to obtain hardware and software at low cost and that he will easily control his expenses if the IT is managed in-house. This is what I myself have long thought ... wrongly!
Indeed, by carefully studying the IT outsourcing market, we realize that using a service provider is less expensive than having an IT department in the company. On the condition of agreeing to spend time to define its objectives and needs, to call for tenders, to receive service providers, to compare their proposals, and to negotiate the prices ... But the game is worth it. the candle. In short, we have won everything in this outsourcing.
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5 - Develop Teleworking
Today, in companies, people work badly. Everyone is constantly the subject of solicitations that prevent him from concentrating: phone calls, meetings, colleagues who come to discuss or offer to go for a coffee, superiors hierarchical staff wishing to urgently take stock of a file, etc. If you add these different elements together and add the fatigue caused by journeys between home and work, you get employees with reduced efficiency One of the solutions to this problem is to set up an organization that makes room for teleworking. This must be organized between the parties with the full agreement of the employees: under no circumstances may an employee be required to work remotely.
In addition, the employer must bear the cost of the computer station and the means of communication set up between the employee and the company. The aim of teleworking is not to transfer certain costs from the company to the employee, but to allow the latter to work in better conditions and more efficiently! In our office, we are testing this system with some of our employees who work at home partially, one or two days a week. This organization allows them to benefit from the advantages of teleworking while preserving their link with the company. Now, we are in a phase of reflection with the staff representatives in order to offer the same possibility to all our employees.
6 - Optimize your Training Budgets
Each year, all companies must contribute to the national training effort by paying a certain percentage of their payroll to an approved joint collection body. All SME managers know this. What they do not know is that by doing it well they can get a great benefit from their training contributions.
Indeed, the law stipulates that, in return for its payments, the company has the right to finance, in proportion, training actions for its employees. However, every year, a large number of SMEs contribute without using their financing rights find themselves with surplus funds just waiting to be granted ... Thus, an SME manager who makes himself known to his financing rights and establishes a relationship of trust and partnership with its training advisor, which can finance the training actions of its employees even beyond the funds it has paid!
We recommend that companies present their training plan to their OPCA advisor every year. If the amount of this plan exceeds their annual membership fee, this is the opportunity to request an additional budget! In general, OPCAs present the file to their management and the applicant can obtain budgetary extensions of up to 50% if the file is justified and accepted. This is a huge asset if we consider, as we believe, that employee training is a major profitability issue for the company because it is a source of both employee motivation and the quality of products and services.
7 - Retain Your Team
A constantly changing team is very expensive. Separating an employee is expensive, recruiting someone to replace him too. In addition, these movements disorganize the company and discredit it vis-a-vis its customers. '' hence the importance of retaining employee loyalty. Beyond salary increases, which it is sometimes impossible to grant in an SME, the business manager can use different motivation tools. Starting with participation and profit-sharing which employees are very fond of. They also greatly appreciate being offered professional training that will increase their employability: language courses, learning business software, training in career management. Finally, all the initiatives that the manager can take to create a good atmosphere in the company are welcome!
8 - Invest Your Cash Well
The managers of SMEs think that the cash flow of their company is necessarily doomed to remain in a bank account or to be placed in a cash fund. This is false! Any company - possibly with the agreement of its shareholders - has the right to invest its cash surpluses in financial vehicles that leave the beaten track. large companies. I advise any SME which has a mattress of liquidity to place a part of it on these bonds, which present almost no risk and easily return 5% per year!
9 - Surround yourself with advice
As a chartered accountant, I might consider myself sufficiently informed to make decisions on my own. But five years ago, I wanted to do without the services of a lawyer to solve a complex tax problem and I do. I'm bitten by my fingers! Since then, I realized that when you have specific operations to carry out, resorting to sound advice can save a lot of money. Certainly, the services of a good tax or legal expert Business has a cost. But this cost is more than offset by the savings that a specialist allows you to achieve thanks to his mastery of sophisticated mechanisms that you did not even know existed.
10 - hang out with your competitors
For fifteen years, I completely neglected to forge and maintain interprofessional relationships in my industry. I thought that meeting competitors in the context of lunches or cocktails could not bring me anything. , I was wrong.

Gena Sanford is a Digital Marketing professional with experience of more than 10+ years in this field and is well versed with SEO , SMM Google Ads, Bing Ads. She is currently working with eBetterBooks, an online Accounting and Bookkeeping Service company helping many other small businesses and entrepreneurs. Know more about it here: https://ebetterbooks.com