Does everyone in your Maine-based small business understand how to make money for your company? It’s easy for employees to view their jobs narrowly and forget that they may be able to contribute help out the bottom line.
Ask everyone in your company to come up with a list of ways to meet the company’s profit projections. If they know what to look for, your employees will come up with dozens of suggestions. Remember that employees are in the best position to recognize waste and suggest how to economize or make better use of resources.
Here are some other things to try:
- Come up with a way to estimate the turnaround time for each project or assignment and set reasonable deadlines.
- Consider adopting a broader credit policy that enables you to tighten, or relax, your credit terms according to the company’s cash flow needs.
- · Faster invoicing usually means faster payment. Generate and send invoices while orders are being prepared for shipment, not afterward.
- Make sure invoices are accurate and easy to read. Mistakes could delay payment and may send customers to your competitors.
- Develop tools to measure, analyze and project the productivity of both labor and equipment.
- Don’t give projects to employees who are overqualified for the tasks. Get the job done for the lowest possible payroll cost.
- Make sure every customer is aware of all the products and services your company provides.
Once your employees understand how they can contribute to the bottom line, higher profits will be close behind. Call Filler & Associates for more information.