By Seamus Parfrey
A question that entrepreneurs often ask themselves is: How can I make more money? And often their instinctive answer is to say increase revenues.
However, increasing revenues makes sense only if it leads to higher profits.
So how can entrepreneurs improve the bottom line? By following these five key steps:
1. Assess the profitability of your business - Periodically analyse your business's gross profit margin and operating margin and compare them to those of the best companies in your industry (or related industries). Benchmarking in this way can help you identify opportunities for improvement.
2. Analyse individual components - Review the profitability of various areas of your business such as individual products or services, business lines, individual jobs, geographic locations, clients, etc. This will allow you to zero in on winners and losers. Use the 80/20 rule.
3. Examine your options - Consider what actions you could...