Monday, June 17, 2013

7 Ways to Boost {encashble} Bottom-line

Increase Profit without More Sales.
- Check your rate of interest on borrowing. See what is impacting your ratings and work to improve the same , better rating will bring down your financial cost
- Calculate interest and bank charges debited in your account. Chances are there there may be excess charge or calculation error.
- Be watchful about dead & slow moving stock. Yes it helps in higher borrowing of working capital loan but it compels for more blockage of resources like finance, space, raw material and mfg cost & lengthen the cash conversion cycle.
- Validate in-source and outsource strategy. Many a times in-sourcing requires asset, labour, finance, raw material storage and depreciation etc as cost.
- Validate business processes. Many a times business processes re engineering is critical as process adds to cost. Wrong or lengthy processes are the cause of leakage. Lean Business Processes are not only cost saving but it speeds up the organisation also.
- Manage your forex risk. If your motive not to earn out of forex gain, hedge the risk as open risk will invariably will end up in forex loss in most cases.
& Ofcourse if you can increase sales price without increase in sales quantity, that will be a great booster. It is proven that an increase in sales price by Rs.1/- can have far better impact on bottom-line than decrease in cost by Rs.1/-
Enjoy your profit and remember its profit on hand matters more than profit only in books. Its not about book profit or camouflaging books. Its a tangible cash profit.

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