You’d be hard pressed to find a business that runs exactly the same decade after decade—and it’s easy to see why! Each new decade comes with new trends, hardships, and technological advancements. So with all of these changes, companies must now figure out ways to maintain profitability.
Here are the top three strategies for making sure your company always maintains its profitability.
Adaptability has a Direct Correlation with Profitability
If a company cannot adapt it will not maintain profitability.
One of the main ways companies adapt is through technology. In the last decade for instance, some really large corporations have adapted their Ethernet to allow employees the option to work from home. This is a huge advancement, as some businesses have an employee count greater than the population of some US cities!
One of the ways businesses have adapted to distance is by utilizing video conferencing, telephone meetings, and email in place of face-to-face meetings. This type of communication may require a few adjustments, but can lead to the same level of profitability. Some things to consider are Internet speed, addressing potential/new privacy liabilities, security, and modified selling techniques for client meetings.
Stay Motivated During Uncertainty
It is completely possible to increase profitability during uncertain times as long as companies maintain motivation. In the previous decade, the Great Recession arguably had the biggest impact on how companies conducted business.
As the recession turned the economy on its head, one question was on everyone’s mind: can we still maintain profitability during uncertain times? The answer was, and still is, a resounding—yes!
When jobs lack certainty it’s easy to lose motivation. Understandably so, many workers fall into a slump when their work lives are altered.
To correct this potential nosedive and profitability hazard, the experts recommend a daily plan designed to keep you motivated. This plan should outline targets, define success, set priorities, and establish goals. The goals should be tailored to your industry. As for our agents, many set goals regarding number of calls, people visited, and policies signed.
Lastly and most important for profitability: keep to your plan. A plan—no matter how carefully considered—if not put in motion is utterly useless.
Exceptional Customer Service
Every wildly successful company has at least one thing in common—they understand their environment. This means not only did they find a product/service that people are craving, they also knew how to deliver it.
Take note and evaluate your delivery. For instance, have you addressed all your customers’ concerns in a fully explained and friendly manner? While this can seem like an extra effort, the difference in profitability will be worth it.
Bonus Tip: Evaluate Your Business’ Recession-Proof Ability
A recession is coming. This is not an if, but a when statement. Last year was the time to prepare for a recession—if you haven’t, now is the next best time.
Here are a few profitability tips:
- Increase available cash
- Develop a product/service that is sought after during times of hardship
- Cut unnecessary expenses
- Market to customers that can still pay
If this isn’t possible with your business, you may want to consider joining a business that is already recession proof. These are industries that flourished during the Great Recession.