Post
Topic
Board Economics
Re: How to increase profit in business
by
Kelward
on 02/06/2023, 21:11:51 UTC
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More customers equals more profit.

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You have to be careful with that premise, more clients* more income, in any case I think that your vision is very limited to small businesses, and basically face-to-face, today you can make money offline and online at the same time. That in fact is already a consideration no matter what area you are in, if you have only one you should be or have a presence in one of the two, the incorporation will bring new clients and perhaps income.

(*) Businesses are complicated depending on which area is related, a friend who increased his clients in your transport company,  saw how costs increased and not profits.

The routes grew and he had to increase costs for new trucks and associated personnel, the growth of customers meant an increase in expenses that he could control but fortunately it took a couple of years to have associated profits.

The phrase 'more customers equals more profit', is working for me in my business. But as you have  explained, it's maybe because i run a small business, however it works for me. I take note about what you said about your friend in transportation business, it sometimes happen that in the cause of increasing your business, instead of profit to increase costs will increase. Sometimes businesses like his needs long term planing before the profits starts to pour in, just like it happened in his case. But all things being equal, either in the short or long term, with proper planing, the more customers that patronise your business the more profits you make