How to increase profits in the enterprise

On an enterprise-wide scale, the question of how to increase profits can be resolved not only by increasing turnover and corresponding revenue growth - as is most often the case when it comes to small companies. Henry Ford said that money earned is money saved. Therefore, in order to increase profits at the enterprise, it is possible to build work as efficiently as possible with minimal time and material resources, which ultimately result in unnecessary expenses.

Instruction manual

1

Traditionally, the task of increasing profits in an enterprise can be solved by influencing one of the three elements in the business coordinate system in which any company operates:

• market volume, • size of the occupied share of the enterprise, • profitability.

However, a lot of educational literature and training courses are devoted to solving the first two problems, which, in essence, come down to managing the marketing mix at the enterprise. At the same time, the growth of profitability due to resource optimization is not widely publicized.

2

The task of increasing profits at the enterprise is solved by implementing the following measures:

• Cost optimization when purchasing resources;

• Cost optimization in resource management;

• Improving business processes / optimizing ongoing expenses.

3

Optimizing the cost of purchasing resources in practical terms means constant monitoring of the supplier market, agreements on discounts, on the supply of large volumes of products at a pre-approved fixed price (excluding inflation), the search for new suppliers (including from other regions). Resource management should be effective: first of all, include a system of accounting, movement and use of basic resources. Exclude theft and any shortages.

4

Improving business processes and reducing ongoing costs means reviewing established relationships between business units in order to increase their efficiency. Efficiency in this case is understood as the maximum reduction in working time necessary for making managerial and administrative decisions, the elimination of unnecessary duplicate functions of units that impede a single business process, as well as the optimization of costs associated with constant payments (utilities, taxes, etc.).)

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