improve
How to increase profits in your business (part 2)
How much will profit increase?
Above, we have listed five methods for increasing profits. How much profit will increase depends on how effectively we implement all the changes in the business and how much we are able to “work” them together. Let’s look at a specific example of how much we can increase profits if we improve each of the 5 indicators by 10%. At the same time, of course, it will be difficult to do this, but it can be done gradually and in turn.
So, we are analyzing not a real, but a fictional, but still a concrete example, with numbers. Let’s see what we get, how much profit will increase.
Our initial figures are as follows: 500,000 rubles revenue, 1,000 potential customers, 10% conversion (100 real buyers), 25% repeat sales (i.e. 25 additional sales to old customers), we sell goods with a margin of 100%. It is easy to calculate that we have only 125 sales for 4000 each. Continue reading
How to establish a business (part 1)
On the topic of how to establish a business, I already wrote in an article on how to organize your business. But since setting up a business is not the easiest thing, let us return to this topic again. In the future, we will probably come back again. In today’s article I will share my opinion on how to establish a business from the point of view of its systematization, i.e. division of business processes into several subsystems and their integration, and organization.
I would like to note (although for you this, the reader, from the point of view of running your own business it may turn out to be insignificant), that this article was placed under the heading “Starting a business” and not “Doing business”, although, probably, the second would be more correct. Continue reading