In the last article we understood that business scenario is changing fast and to keep the pace with the same we need to KNOW, HOW to update our SYSTEM of doing business?
Well, to develop such KNOW-HOW, these 7 steps to increase profitability of your jewelry business are created.
Thus, 7 steps are organized in 3 parts.
In the first part that is first 3 steps will help us to KNOW, your present status. The next part comprising of next 3 steps will help in defining HOW we can change for betterment. The last step and the most important one will summarize the learning and finally help us in defining a SYSTEM which can be our ultimate weapon to the ever changing market scenarios.
The exact steps are –
7 steps to Increase profitability of your jewelry business
Step 1: Know your customers
Step 2: Know your numbers – financial literacy
Step 3: Know your inventories
Step 4: How to define your business strategy?
Step 5: How to ensure growth in sales?
Step 6: How to maintain better profitability along with growth?
Step 7: Put systems in place
But there is a million dollar question yet to be answered.
How does one measure his performance after adopting these seven steps?
Let us say someone has worked on this approach and has done whatever was suggested by me, how does he come to know whether it has really benefited him or not?
If by applying these norms you could find out that your sale has increased by 25% over last year can you say that you have really been benefited?
If you notice that you could earn Rs.1lack more this year because you applied all tricks and techniques shown in this seminar will that be a correct judgment of the benefit?
No. Neither sales nor profit is a real bench mark.
The real bench mark of any improvements in business is PROFITABILITY.
What is Profitability?
Profitability = Profit + Ability
Profitability means ability to make or create more profit out of sales.
Profit may increase by increasing sales,
But profitability can increase only with better business management.
Thus profitability is the exact measure of any businessman’s true abilities as well.
If two businessmen are doing almost similar sales in rupees but if one earns 15% out of sales and other earn 13% out of sales, the first one can definitely be said to be working with better vision as well as systems.
Profitability will tell you whether one is working harder or smarter!
Profitability will tell you whether a company can sustain the dangers and competition of future or not…
So, are you ready to work on Profitability of your business and not merely Profit? Let us begin our journey of 7 steps to increase profitability of your jewelry business with the first step in the next article.