The “bottom line” is one of those business jargons that’s frequently circulated in the corporate world. Most likely you’ve heard it used before, but unless you work in business, you may not know exactly what it means. Simply put, the bottom line refers to the profitability of a business after all expenses are deducted from revenue. It’s essentially a company’s net profitability. In an ideal situation, the bottom line is always positive as more money is brought in vs. paid out.
During the worldwide economic downturn ignited by the Financial Crisis of 2008, many companies tanked and some only broke even on their bottom lines. Now, as the global economy improves and jobs become more readily available, companies are experiencing much healthier bottom lines. However, there is always room for improvement- more money to be made, more leads to be gained, more partnerships to be formed. Here are some strategies that companies can employ to improve their bottom lines.
Going global
In an increasingly global and interconnected world, expanding into international markets is a smart and profitable business move for most companies. Surprisingly, less than 1% of 30 million American companies export their business overseas, according to the International Trade Administration. Those companies that choose to do business strictly within their own borders are missing out on a massive growth opportunity to tap into the seven billion potential customers worldwide. Additionally,with social media, more shipping options and more streams of payment, it’s simple for companies to sell their products and services to an international market.
Thinking outside the box
“Thinking outside the box” is another one of those overused sayings, but if you want your business to stay fresh and marketable, it pays to always be one step ahead of the competition. Always be creative in finding new ways to attract and retain customers and talented employees while growing sales without increasing costs. Try adding new services to your current offerings and automate and outsource where possible to save time and money.
Tapping into social media
As I’ve discussed before, social media sales are an absolute must for any sales executive. These days, if your business is not online, it is in the dark and there are few opportunities for growth. Nearly half the world’s total population, 47 percent, is now online. Make sure you and the people on your team have at least a basic understanding of social media and utilize as many platforms and reach out to as many audiences as possible.
Teaching everyone sales skills
As Vice President of Sales and Marketing, it is essential that every team member utilize their unique skills to be an expert sales manager in order to generate business. Every business unit connects back to sales, so anyone in the company interfacing with customers should be an expert in the company’s products and services and possess excellent communication skills.