The best way for a business to maximisise profit is to maximally invest in its product.
Business writer Steve Gaddon explains how the investment of time, energy and resources into a business can pay dividends.
You might be able to get a higher return by doing more work, but if you’re not spending that time or energy, you’ll still end up with less income than you would if you were working on your own.
Here are the five things you should pay attention to if you want to maximises your profits.
Invest in the right areas of the business.
The key is to invest in the areas where your business is most successful, which can be found in the boardroom, marketing and advertising departments.
“When you look at the boards of the biggest companies, the top two most influential people are often the CEO and the chairman,” Gaddon said.
Invest into the right team.
If you’re going to invest, make sure you’ve chosen the right people.
Gaddon said it’s important to choose people who can take the company to the next level.
“They’re not just good at their jobs, they can also do things other people can’t do,” he said.
“You need people who have an ability to get things done and do a good job with people who are not afraid to go out and do things.”
Use social media to keep track of where your money goes.
Social media allows people to track their income, expenses and savings.
Gaddon uses Twitter, Facebook and Instagram.
“People who are really into their hobby and hobby project can use these social networks to keep up to date on their progress and how their money is going,” he explained.
“And they can get feedback from the people they’ve shared their hobby with on those social networks.”
Keep a diary.
When Gaddon started his business, he kept a daily log of his finances and expenses.
“I wanted to have a record of all the money I spent, so that I could track it down,” he told News.au. 5.
“The key to maximising profits is to set a realistic, achievable goal,” he added.
This is important for any business, but especially so if you are a small business.
“It’s very difficult to find people who know how to do it, but once you start you can learn from it,” Gadd said.
“When we started we started with one goal and it’s evolved into several, including one goal of $5 million.”
Topics:business-economics-and-finance,business-news,business,finance-and.consumer-protection,financial-market,industry,consumer-fraud-and/or-consumer-misrepresentation,internet-technology,advertising,community-and.-society,australiaMore stories from Victoria