If you are an owner of a business, then you have to be very watchful on many areas because sometimes you will advice to your employees, your managers or company superiors or subordinates. As business or money is yours, liability is yours. Only increasing sales at all times do not indicate profits or income. Also we know maximizing business income or profit is very hard to think but if you follow some real business policies, principles, strategies, major business basics etc then it is very simple. Here I am going to focus on some areas of business where you can put your concentrations.
1. Product pricing: It is very much essential for a manufacturer or a seller or a merchandiser. You have to review your product pricing on a regular basis in comparison with existing business competitors from market competitions. Your product pricing may be affected upon your product's market demand, cost, quality etc.
2. Only cash flow in bulk size doesn’t mean high profit: Proprietors sometimes mistakenly withdrawn hard cash from the business center in sense that s/he’s getting more profit from operations. Merely having cash and making profit has huge distinction. Hence, in your business if you do so, may I request you to maintain books of accounts properly such as Ledger, Petty cash register, PL account (Profit and loss account) or income statement periodically? And income statement will show your business performance like gross profit, net profits and expenditures during a accounting period.
3. Check out creditworthiness of your customer: At the time of allowing credit sales or transactions you have to judges your new customers creditworthiness. If you allow credits then maintain a form where they will add some references (3 more). Referee will put their signature, photos, address, contact number and recommendations etc. And make a physical verification before issuing the materials on credit.
4. Credit risk management analysis: Another important point is to establish a credit risk analysis system such unless your new or potential customers not paying their utilities bills for several months, their characters, s/he bears more loans from banks or financial institutions which are now out of controlled for them.
5. Allow special facility on even credits sales: Say, one of big customer wants credit for a big project at that time you must call an official meeting with them for negotiations on sales prices, discounts as well as credit terms or payment terms and conditions, maintain a written agreement with seal and signature. And if possible collect PDC (post dated check or cheque) from themselves as warrantee.
6. Deliver dunning or demand letters: Besides phone calls or reminders or physical visits you have to issue or deliver demand or dunning letters like reminder letter, 1st, 2nd or 3rd letter for collection or recovery of previous dues.
7. Collection or recovery on credit sales: Say, you are maintaining a credit sales policy like 30 days, 60 days or 90 days when you made an invoice during sales. You have to be very careful about your past dues or outstanding whether it is being cleared with term days such as 30 days, 60 days or 90 days. If you see, you are crossing your credit limit just collect hard cash or on dated cheque or check from your customers. This can be done through negotiations or via an agreement (where credit & payment terms and conditions shall describe). So, check out now if you have more credits outstanding in to the market. If so, then involves some employee or commission basis broker/agent to recover your prior dues unless they're bankrupt or insolvent (be careful, this is one kind of risks).
8. Run a POS machine for spot sales like debit cards or VISA/Master Card: Maintain electronic payment systems. In modern world business owners are very familiar about debit card, Visa card or Master card. Hard cash bearing is always risks or hassle, so if you don't have this, you can buy a POS machine for your business center and hang out some sticker that you are accepting VISA or Master or Debit card here! Never think plastic cards is not good, you know banks or financial institutions are giving guarantee for this type of transactions. Do so, for maximizing your sales as well as revenues.
9. Deal with clients very carefully: If you made a sale that doesn't always mean your job is actually finished. You have collect hard cash or plastic money from themselves. Some client's shows always busy themselves for doing any fraudulent activity. So, be careful at the time of dealing customers.
To conclude, I presume you had finished your reading, if you got new impression from my writings, now it’s the high time to implement these in to your business in order to maximize company’s business income.
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