After 18 months of closures, reduced spending, recessions, and so on, many business leaders are thinking about new ways to increase profits.
There are many methods for increasing profits, but a lot of them harm company culture. For example, laying people off or cutting benefits packages can add to your bottom line by reducing expenses. However, these moves can also reduce job satisfaction. Employees may feel unsupported or overworked. Suddenly, your business is a “bad” place to be.
The good news is that there are several ways to increase profit without hurting company culture. If you need to raise the profit margin but don’t want to risk losing your team members, one of these four methods could be the right fit.
1. Teach Your Team to Upsell
If you already offer a wide range of services or products, you might have plenty of potential for increasing profits by teaching the team to upsell or cross-sell. Upselling focuses on getting people to buy a better version of what they’re looking at. Cross-selling means offering additional, complementary products or services.
Consider a cellphone plan. A customer may want the most basic plan available. If you can upsell them, though, they might buy a more expensive phone or a more robust plan. If you cross-sell, then you might be able to interest them in home phone or Internet services too.
Better yet, upselling and cross-selling don’t have to hurt your company culture. If you’re all about customer service, then informing your customers of their options and the deals you have is just part of the package.
2. Offer New Services or Products
During the pandemic, many businesses had to suddenly switch their service offerings. Many restaurants started offering take-out for the first time. Grocery stores added delivery services. Small shops went online.
Other businesses found new services to offer. An IT company, for example, may have found a profitable byline in coaching people for setting up remote work.
It’s never too late to add a new service or product to the line-up and head towards higher profits.
3. Think Holistically
It’s often tempting to focus solely on the bottom line, sales figures, or new customer sign-up rates. While these statistics can indicate how much your business is bringing in, they aren’t revealing the big picture.
For example, maybe your sales team isn’t hitting their numbers. You start to worry about “dead weight” or apathy on the team.
If you ask the sales team, though, they’ll likely communicate any challenges they’re facing. What resistance are customers putting up? Maybe you need to “sweeten the pot” with a great deal. Maybe a competitor’s product does something yours doesn’t.
Thinking holistically allows you to see these kinds of challenges. Clearing these roadblocks lead the way to higher sales—and higher profits.
4. Work with Your Company’s DNA
If you’re currently offering everyone flex hours and WFH, you might wonder if higher profits will be achieved by getting everyone working overtime at the office. After all, if everyone increases their output, then you’ll make more money, right?
This isn’t necessarily true, especially since it’s likely many of your team members will quit. You may have people working double-time, but you only have half the staff you did.
Instead, spend some time reviewing your company’s culture. You can evolve from your foundation, but you have to know what that foundation is before you can “evolve.” If your DNA involves giving everyone a more flexible schedule, you need to find a way to work with that, not against it.
Finding the Right Solutions to Take You Forward
When most businesses think about increasing profit, they look to make cuts. That can hurt company culture. Instead, take a look at ways you can work within your business’s DNA to improve profits. The right team members, the right incentives, and the right technology can all help you get there.