Increasing Profits As A Small Business

By Franklin Skribbit


There is a common fallacy that perpetuates itself among small business owners who believe that they only way to substantially boost their profits is by increasing sales.

Sam Walton, the founder of Walmart created a business model that combined hard work with a little bit of wackiness and a lot of innovation to insure that his company was one of the most successful of its time, and in fact, remains successful twenty years after his death. And beyond his monetary success (and maybe the biggest contributor to this success) was his "ahead of his time" efficiency that he introduced to retail and that still drives his sores, and many others, to this very day.

Fred wasn't afraid of getting training from the best. He went off to the Marine Corps in order to understand some of the best delivery procedures in the world. Everything he did was with that vision of an eventual overnight commercial delivery service to the world. He knew it was possible and he wasn't going to let anyone tell him he wasn't. When you are getting trained though, it takes patience and persistence in order to get to you end-all goal.

The profit margins, or the total profit gained off of every sale of a product or service, for a business can be increased in a number of ways without having to tamper with the existing structure of the business model. This means that small companies can begin to make more profits without having to change existing models for gaining new customers, without increasing sales, without changing current implemented systems, without hiring or firing more staff, and without altering overhead costs.

This sort of continuous progression can help you get ahead and stay ahead of the competition as an entrepreneur.

Entrepreneurs play a hugely significant role in the American economy, and by taking advantage of the educational opportunities available, such as degrees in Business Administration Accounting, Business Management and Accounting; and Property Management, you can increase your potential for success and your knowledge base.

What happened was that there were a number of strikes at UPS that opened the door for FedEx to take on the surplus of packages needing to be shipped. This meant that employees had to work almost twice as much as they were before. With the investment and loyalty that was in place due to great management strategies, FedEx grew almost overnight.

As you begin to attend college in pursuit of a Human Resources, New Media Marketing, or Business Administration Degree, remember the amazing opportunities with which your education can provide you.

The important thing to remember is that every business is trying to undercut their competitors, and at some point one's own business will simply not be able to compete with the low prices of others, so distinguishing the business through another avenue, such as customer service or quality of product, will allow the business to successfully increase their prices without losing the bulk of their customers while gaining new customers.




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