photo credit: luc legay
Many business owners are looking for ways to grow their profits every year. They keep hoping there will be easier ways to see their profits go up on their charts, but sadly many of them don’t know of any easy ways to help their profits grow. Below are some tips on growing your profits easily, located recently on Entrepreneur.com.
Your number of leads on customers you contact and those who contact you regarding your business are an important key factor in your profits. The amount of those people who actually make a purchase in your store are another important key factor. Figuring out your conversion rate is rather simple. Say 4 people out of 10 purchase something in your store that day, your conversion rate would be 4 out of 10 people or 40% for the day.
Average number of transactions: The number of purchases the average customer will make over the course of a year. Again, it can be an estimate. This number will probably be larger in a retail setting than in companies that operate in a professional services industry.
Increasing the profit margin for your store is another great way to grow your profits for the year. Your profit margin is simply the percentage of each transaction that is just profit. So if you sold a sweater for $100 and your profit from that sale was $25 dollars, then your profit margin would be 25%. Many get intimidated by handling all of these numbers but with a quick course in finances, profits, and sale margin’s you will better understand what you are looking at on a daily basis.