Top 4 Business Tips to Improve your Return On Investment
by Priya Jain Business ConsultantSummary: Finding ways to
increase your business’ profits can be challenging. But with a little
innovation and creativity, you may be able to move the needle substantially.
Every business
analyzes its future by identifying past and potential financial returns. ROI or
return on investment is a ratio of your company`s net profit compared to your
financial investment in the business.
Many people often
confuse this term with the profit margin. However, ROI is the financial return
that you receive from spending money and not the profit received from the sale
of goods and services. It helps the leaders to make informed decisions by
kicking the guesswork out of the window. To know how you can increase the ROI
of your business, you can attend Leadership Funnel Program 2.0 by Dr. Vivek
Bindra.
Why is it
Important?
The ability to
calculate return on investment is crucial for every business, regardless of the
company`s size or industry. A businessman is considered smart if he manages his
expenses and monitors ROI regularly. Only businesses that can analyze ROI,
survive in the long run.
So how can you
improve your business`s ROI? How can you ensure that your business`s ROI is
always increasing, no matter what?
Want to know which
type of business model will give you high ROI? Watch it here. https://www.youtube.com/watch?v=ynB6sN_dWwc
Here are three
ways that will help any business to receive higher ROI in every season:
1.
Invest in High-performing Marketing Platforms
As part of their
marketing strategies many companies often buy ads from Google and Facebook. But
these platforms take a lot of initial investment before they could give you a
significant return. If you want to increase your ROI without investing such a
large amount, you should look for other platforms like YouTube and Instagram.
2.
More Discounts Means Less Profit
Most often than
not, many business owners purchase inventory from distributors and lend it to
the market on credit. This technique only results in loss- loss of inventory
and loss of return. Why? The reason is that you purchase the stock after making
the payment in advance to the distributor. However, when you gave the stock on
a credit basis with receiving the down payment, you will be deprived of the
funds.
Hence, you will
have to offer your stock or products at a discount that will eventually hit
your profit margin. Always choose a business model where once you sell a
product, you get your money back. You can become a franchisee of Bada Business to earn profits
every week.
3. Choose a Business Plan with Zero Inventory
Management
If you have a
small business that stores goods in a warehouse, then managing inventory is an
essential part of how you can control your stock. Inventory management is like
storing ice. Once you have kept ice inside the warehouse, it will melt down
into the water and will drown your profits under it, if you do not manage your
stock smartly.
As the time of the
stock increases, its shelf-life, as well as the price, begins to decrease. For
instance, electronic devices and gadgets experience a price drop as soon as a
new model with upgraded technology is launched. From perishable to
non-perishable items, the value of stock starts decreasing if the goods stay in
the warehouse for a longer duration.
Hence, it is best
to order those goods that are popular and have numerous takers in the market.
You can also pick a business plan that does not require you to stock up goods
in a warehouse. To gain in-depth information from the experts, join India`s
most powerful business training event ‘Leadership Funnel Program’ by Dr. Vivek
Bindra.
4.
Margin
Whether you have a
retail store, commodity business, mobile repair shop, or restaurant business,
the profit margin is limited to 10%. However, the margin is not fixed and may
be hit by external circumstances like an increase in cost, wastage of
inventory, or expensive credit that can convert profit into a loss.
As an
entrepreneur, you should always select a business model that returns high ROI.
For instance, a Bada Business Franchise Partner enjoys a 20% to 50% of profit
margin, without experience undercutting systems, with fixed prices.
If you are looking
for simple and effective ways to improve ROI on your business, you should join LFP Bada Business. This event is
designed to cater the modern-day entrepreneurs with practical solutions to
business challenges.
To know more about
our business training program, visit https://www.badabusiness.com/lfp?ref_code=SM&pp_code=BHBB000078
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Created on Jul 18th 2022 02:35. Viewed 184 times.