The Secrets Of Making Profit In Your Business Enterprise

The future prospects of any enterprise depends on the ability to capitalise on the available opportunities through a deliberate strategic planning.And considering the fact that the main aim of many enterprise or an organisation is to make profit either in economic prosperity or adversity,a comprehensive and systematic approach towards harnessing and controlling the factors of production efficiently and effectively so as to achieve the goal of making profit as an entrepreneur is earmarked in this article.I will discuss here the sequential steps which if well adhered to will catapult your business towards the league of high profit making companies.

Identify and select the right personnel
As we know that management and leadership are about vission,mission,strategic planning,decision making process and the overall responsibilities of an enterprise,without any doubt the quality of leadership at the disposal of your enterprise may make or break your company but a capable leadership will positively impact on the ability of your company to be proactive and overcome inevitable business dynamics.
In fact,the strength and value of your organisation is largely determined by the quality of its leadership and employees.It is the duty of a leader to provide guidance,directions and inspirations to knowledgeable employees who are willing and able to learn.It is therefore necessary for your organisation to select the right personnel from the beginning and perpetually train them in line with the emerging work techniques.
Engaging a wrong personnel will hinder your business determination to expand your productive/service capacity and earning more profit will be challenged by inherent inefficiency and undue resistance to change.Apart from the valuable time that will be wasted on wranglings some will definitely be wasted  in the learning process.Therefore,getting it right from the outset by engaging professionals is,thus,crucial.

Arrange you projects in order of priorities
The ability of an enterprise achieving its corporate objectives depends largely on the quality of resources at its disposal.And as we all know that resources are not only scarce relative to their demand but can also be regarded to as wasting assets.Therefore,there should be a careful planning of your investment activities in such a way that optimum benefits would be  recorded with minimal lost.In order to achieve this,you must deliberately organise your objectives in order of priorities,suitably select projects that is certain to produce highest returns from the smallest combinations of inputs,in a way that your consumer's satisfaction is guaranteed.The decision of selection should be based on objective financial analysis and also based on comparing the benefits from projects against their costs such that a project with highest possible benefits and value are selected.Meaning that,more resources should be extended to the best investment opportunities that is open to the business so that your enterprise can maximise its opportunities without detriment to your customer's satisfaction.

Determine the activity that generates the highest percentage of your total profit
Most entrepreneur today believes that sales will bring higher profits,hence they focus on ways of expanding revenue through increased sales volume.The assumption is that an enterprise with a large market share will benefit from scale efficiencies,brand awareness or other advantages that may further translate to greater profits.Many entrepreneur often believe that if you can grow faster than your competitors then profit will simply follow.
But,I put it to you in strong terms that the current management thinking does not agree that profit necessarily follows increased revenue.It is believe that for you to improve the status of your profit earnings,you will have to analyse the aggregate profits earned in your enterprise at all points along the value chain and also determine the activity that add the highest percentage to your total profit and devote more effort and resources to it.

Purposeful abandonment of the old and unrewarding
Abandonment is the magic towards innovation-simply because it frees the necessary resources and also stimulates the search for the new that will replace the old.We are in a dynamic businesss world where the taste of consumers rapidly changes the production processes and not only that but this changes have also become increasingly sophisticated.The major outcome of this is that some yesterday products that claimed to be a cash cow has grown,matured and eventually lost its prime position in the consumers scale of preference and indeed the marketplace.
No matter how this product is repackaged and aggressively marketed,it will definitely not be able to generate income to sustain its retention in the long run,therefore it should be harvested,no matter what sentiments attached to this product by the company since it does not make sense investing scarce resources to keep this product afloat.A typical example here in Nigeria is what Ovaltine Nigeria Ltd. did to Ovaltine beverage and also what UAC did to old Kingsway store.This is known as purposeful abandonment of  old and unrewarding.

Time management and control of service/production
An entrepreneur must be able to keep him/herself abreast of the cost of operations by developing productivity control measures.Measures should be adopted in a way that the daily contribution/output of employees can be determined in addition to job evaluation and manpower audit that will subsequently lead to redeployment of staff to areas where they are better suited.And all this involves a manager or an entrepreneur checking physically the workdone by an employee e.g how many letters or memos were written?,how many minutes of meetings were developed and typed by the secretary?,etc all this rules will spur employees to put in more efforts and good performance should be rewarded.

Delegate and empower
If your subordinate can do a job effectively,then please stop doing it yourself and engage your capable employee(s),otherwise you will be spending more expensive time to address the problem.Delegate functions to your subordinates and empower them to act and gear their efforts towards the interest of the company,also close the pace of response to customer's needs,entrepreneur must be able to think about the future of the company and also any development arising within the chosen-market.And for you to do this,you will need to imbibe in yourself the culture of delegating and empowering.Many managers/entrepreneurs dislike this because of their hidden incompetence.
It is a well known fact that tomorrow is uncertain because a manager/entrepreneur cannot get ahead of today.In fact,few managers are greatly impressed with their own performance in the immediate tasks because such tasks recur again and again,no matter how many times they are solved.And the costs of repeated trials are great and I am sure many organisations can hardly afford this
As a  management expert,an executive  can think of tackling the future but he must be able to dispose of the challenges of today in less time and with greater impact and permanence.



I shall rest here today, will  keep you inform in my future updates on this topic,don't forget to subscribe to my feed for such updates and do endeavour to drop comment on this article.But before I go,I'll like you to remember that irrespective of your chosen area of endeavour,the task of management is essentially the same,that is,to create and maintain an internal environment in which individuals working together as groups attain efficient performance harmonious with the broad objectives of the enterprise.The environment must be condusive enough for individuals to make their maximum contributions to the efforts of the group.All these when properlly observed will definitely sring up the profit margin of your enterprise.