Often times when business owners plan ways to increase profits, they focus on attracting more customers and making more sales. This can boost the business’s top line i.e. revenues. However, it usually equates to working harder and spending money on marketing. And while there’s nothing wrong with either, it won’t ensure an increase in your bottom line i.e. the net profit in your business. On the other hand, when that hard work and attention to sales is executed alongside smart work – decisions and actions related to controlling costs, increasing productivity, and marketing resourcefully, results in a boost in net profits. For example:

Training Team Members for Better Productivity

Training employees well requires an investment of time and money, but it’s one of the smartest investments an entrepreneur can make. Well-trained employees save their employers thousands of dollars, producing higher-quality products, increasing output, and nurturing happy, loyal customers.

Paying Attention to Marketing ROI

Smart entrepreneurs don’t throw good money after bad when it comes to marketing. They do more of what works, and let ineffective tactics go. No entrepreneur can do that if they don’t know what works and what doesn’t. Keep an eye on ROI (return of investment) in every marketing measure you take.

Reign in Overhead Expenses

Be smart with your money. Look for ways to reduce overhead. Be creative and resourceful. It might mean sharing office space with a vendor or allowing employees to work remotely. Take advantage of technology that automates routine tasks like accounts payable and email marketing.  Get updated quotes on things like insurance, printing and supplies every couple of years to ensure you’re always getting the best price.