Talk on How to Increase Your Profits

This morning, I conducted a talk on How to Increase Your Profits to a group of CEOs from Small Medium Industries or SMI in short. In Singapore, we call SME or Small Medium Enterprise. I talk on the basic of increasing your profits. Everyone knows to increase profit is the simple relationship of increasing sales and decreasing cost. Buy low sell high. The difference is profit. If everyone is buying low, how can anyone sell high? The secret lies in value-added. The simple example is you buy in volume and sell in small volume. Your cost will be much lower when you buy in volume as well as the cost of transportation. Selling in smaller volumes allow you to sell at higher price. This process adds value to the product. In the higher price, after netting out all the costs, there should be a profit.
Increasing profits requires your to educated your team on the financial statements so that they can understand how their work impact on the profitability of the company. Sales team need to learn how to sell and have good product knowledge. Operations team must be trained on problem solving skills, process skills, telephone skills, product knowledge, and other specific job related skills. Sales are like hunters, they bring in the big game(orders) and Operations are like farmers, they tend the ground and nurture the crops(Customers). With two well trained team, the company's profits grow and grow and grow.
Good luck!