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My Experience 5 Ways To Grow Your Profits

Discussion in 'General Business Topics' started by selvaa, Feb 21, 2016.

  1. selvaa

    Yellow Belt

    Dec 20, 2015
    +56 / -0
    5 Ways to Grow Your Profits

    5 Ways.

    The profit of a company mainly depends on the company’s revenues and expenses. There are many formulas and theories to explain the ways of increasing the profit. But most of the fresher's and beginners do not feel good in formulas and in fact they have no interest on seeing this.

    The first thing is to be comfortable with the arithmetic. Thus, we present the following tips to grow your profits.

    There are 5 simple factors
    • Leads
    This is nothing but the contacts. It represents the total number of contacts you have or the number of people contacted you for business.
    • Conversion rate
    It represents the percentage of people who actually have deals with you. For example you have many visitors but only some of them make purchases or deals.

    • Average dollar sale
    It represents the average dollar amount per sale accounted for an year. It range from $5 to $10 up to thousands of dollars.
    • Average number of transactions
    This means the average number of transactions or deals that are made by your customers per year.
    • Profit margin
    This is the profit percentage of each and every sale. For example, if you sell something $100 and make a profit of $15, then your profit margin is 15%.

    Let us apply the above discussed concepts on your business. This formula multiplies factors but not adds them.

    1.) Leads x Conversion Rate = Customers

    2.) Customers x Avg. Value Sale x No. of Transactions = Revenue

    3.) Revenue x Profit Margins = Profit

    Consider that you have a 1000 leads and 25% conversion rate. Automatically, you have 250 customers. If each customers purchases for about $100, and you have a 25% profit in each purchase, then you have a profit of $6250.

    This shows that we are just multiplying the factors rather than summing up. These five ways are not difficult to understand. In fact these are followed most of the leading companies and business firms.

    To succeed in your competitive environment, try to increase the revenue and cut down the expenses. This paves way for an increased profit. But this cannot be achieved so fast. It is a slow process. So, solve as much as problems that occur in business to get a better experience in this.

    The above five ways are the basic and most important ways for increasing your business profit. So, for now, start working on numbers and make new ideas for evaluating these formulas without much difficulty. Ultimately, your future will be much better than present for sure.
  2. Pooja Sharma

    Yellow Belt

    Feb 5, 2016
    +20 / -0
    Lead generation and conversion rate are the two base factors that are really important for any business growth. When you have have list of your generated leads that are further converted to increase the revenue. If there are no leads, you would not be able to define your goal to earn. Any business should focus on lead generation at the initial stage to hit the target further tat results in more revenue to investmet.
  3. Doominic anderson

    Yellow Belt

    Jan 30, 2016
    +21 / -0
    All the informations provided by this tutorial is good for increasing our business growth.
    Generating contacts is most important part because without it you are not able to sell your product and if you are able to satisfy your customer then they can become your permanent customer.
    Updating the selling strategy and changes in it as per the market demand also help to increase the sell.
  4. justiinn

    Yellow Belt

    Feb 3, 2016
    +28 / -0
    For any type of business growth, you require the people so that they purchase your product and thus help you in your profits.
    But having such a huge contacts is not everybody's cup of coffee.
    so to have more people know about your business you should start generating the lead by taking help of social media.
    and start conversation with them.
    and yes it is rightly defined by you selvaa that to succeed in your competitive environment, try to increase the revenue and cut down the expenses.
  5. steve taylor

    Yellow Belt

    Feb 12, 2016
    +25 / -0
    If you have any types of business or store available then you want to how increase and how maintain your business profit because your business profit is very crucial part for your business.Your description is good and your ways is great.
    But i thing more ways are available to increase your profits if you have a business.

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