Without so much introduction, we all know that business has
to make profits. Hence, if you're a business owner, entrepreneur or a manager
in charge to boost the profitability of your company or organization, the
following 10 tips will guide you on how to increase your business
profit
1. Increase owner's capital or investment
More investments mean more ROI (Return on Investment). Don't
play too safe. Investing in business has its own risks. However,these risks can
be calculated. Thus, if you have money that are sleeping or buried in your
personal account, put a portion of it into your business operations according
to your tolerable risks. Also, if you are squandering your money in personal
expenses that don't have meaningful returns, try investing the money you are
wasting into your business to increase your financial assets, as well as your
financial performance. You can use it to increase your production, thereby
increasing your revenue and profit.
2. Increase your debt
If you don't have your own cash or assets that you can put
into your business, then try to obtain loans. You can get loans from banks,
credit cooperatives, government financing programs, or even from your close
friends, parents and relatives. Just like investing more capital, obtaining
additional debts also increases your assets, which can be used to generate more
income and profit. Loans are inherent to businesses. Even the largest companies
in the world have liabilities. Just make sure you can pay on time, whether it's
short-term or long-term.
3. Decrease your interest-bearing debt
Interest from loans is an expense. However, if the interest
expense you incur is compensated by more profits generated from your loan
proceeds, it's just fine. Interest expense is even deductible to your taxable
income subject to limits.
