How to maximise business profitability

Other than cutting expenditures, carrying our procurement or going hard on marketing and sales, there are other unique ways to increase business profitability. Here are some ideas:

1. Sell your waste:

This approach is usually overlooked, but as they say, ‘a man’s trash is another man’s treasure’. If your business creates waste, these waste can be useful for other businesses. For instance, juicing business creates a lot of unwanted fruit pulp waste and these can be sold to compose business; or wooden chips that is created from furniture production can be used as biomass fuel or organic mulch in gardening. Not only do these waste are profitable, it is also a more eco-friendly.

2. Rent your business space:

There are times when your business space is unoccupied which is a waste of money. Why not rent the space outside your business hours and make profits from this?! For instance, a cafe can rent it’s space to a non-alcoholic bar business at night. It is a win win situation for both business, as the other business will have less overhead and you can have a consistent stream of revenue.

3. Create another side business:

Although the conventional approach of having one specialised business activity has its advantage, such as being able to specialise and dominate a particular niche; there are also disadvantages i.e. losing profit where there is a change of consumer behaviour or trend. Having a side business can help bring new stream of revenue.

Here are some side business ideas to incorporate:

• Cafe: What better ways to draw in customers than with an almond milk latte!
• Workshop: having a workshop for customers to experience what it  is like to create your products. This is not only good PR but a great way to let your customers appreciate your products and perhaps be loyal customers.
• Consulting and training: If you are an expert in your business field and have a good track record, you can consult or train others. Another lucrative stream of revenue is to create an online education course that provide passive and scale-able revenue.
• Hotel: Having guest using your hotel is a good opportunity to up-sell them your products or services. This is also a great rejuvenation strategy.
• Merchandise: Up-sell merchandise are good mementos. Perhaps create a mascot!
• Play area: Mothers are more likely to visit if the business is kid-friendly.
• Youtube: If what you have something worthy to display, why not film it and upload it on youtube? For example, artist can perform art. Not only does this make revenue stream through monetization but it is also good PR strategy.

4.Conduct business in more than one economic sectors:

By having business in more than one economic sectors will cut out the middle man and reduces your expenses. For example, grow fruits (primary sector), make your orange juice (secondary sector) and directly find a retail store to purchase your goods will give you considerable larger margins.

5. Include an exchange trade programme:

Sometimes you can trade certain goods with your customers so both can benefit. For example, if you have a second hand clothing store, you can exchange points, voucher or even food for second hand clothes from your clients. There are a lot of people who wants to get rid of their items and would prefer to receive money or essential goods. If you decide to trade essential goods with your clients, make sure you have a good deal with your long term vendors. This will be mutually beneficial to both businesses.

I hope these business strategies will help your business prosper.