How to increase a company's profit? Tips for getting new recipes
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How to increase a company's profit? Tips for getting new recipes


How many times have you asked yourself how to increase company revenue or improve profit ✅ (there is a difference between profit and revenue, but don’t worry because we will talk about it)? Companies are always chasing new revenue, after all, what business doesn’t want to be more profitable, is it not? 💵

There are several ways to increase revenue and selling more does not necessarily mean healthy cash. This is because making the business more profitable also involves reducing costs.

🖊 In this article, we will show you how to increase revenue and maximize profits from small stocks. Let’s check

💡 Profit and revenue: what’s the difference?

Earning is making money. How does a company make money? If it is the act of selling that brings new revenue, then we can say that billing has to do with sales. In other words, sales are linked to your company’s total sales in a period (day, week, fortnight, month, etc.). This means that everything that was sold in a certain period comes into billing.

Note that billing is not concerned with the costs and expenses of the business. For example, if a company sold 60 shirts in 15 days, valued at $ 340.00 each, that means it made $ 20,400.00 in a fortnight. Profitability, in turn, takes into account everything the company sold in a period with fewer costs and expenses.

The company in our example sells each shirt for $ 340.00. There are some expenses to manufacture the product (for example, marketing expenses and costs with raw materials, electricity, and depreciation of equipment), which together add up to $ 220 per shirt. This means that the shirt company made $ 7,200.00 in the fortnight ($ 20,400.00 in revenue – $ 13,200.00 from expenses).

📟 With that, it is possible to understand that Billing is all that was sold, while Profit is the billing minus expenses (that is, what is leftover in the cash after all expenses are accounted for).

To increase profit, therefore, it is necessary to know how to increase a company’s turnover or decrease expenses. But in this article, we’ll focus on how you can increase revenue. Ok?

💡 What is the definition of revenue?

Before going to the tips, we also need to explain the concept of revenue. In the accounting classification, we call revenue all amounts received by the company. These amounts may come from direct operations, such as the sale of products, goods, or services, or they may also be non-operating income, such as interest received or even from the sale of an asset that is no longer used.

In the shirt company, the revenue may come either from the sale of the shirts themselves, or the money earned from the sale of a machine that has been replaced by a better one.

✔ Tips on how to increase company revenue

New revenues are a way to maximize profits, as, as we have seen, they have to do with the amounts received by the organization. However, understanding how to increase a company’s profit goes far beyond just selling more. Below we list some tips to help your business on how to make a profit and leverage finances.

🔝 1 – Know how to price correctly 

New revenue without the right price won’t solve the problem of how to increase a company’s profitability, would you agree? Pricing is a challenging task because there are some important things behind tagging a commodity or pricing a service.

🔴 The formation of the sales price influences – and greatly – a customer’s purchase decision. However, lowering prices to sell more does not necessarily imply an increase in profit. You need to be sure that your company is offering the best offer to be profitable. Balance is essential there.

The first step towards correct pricing in order to maximize profits is to know the cost of producing or purchasing products and services. Only then will you be able to work with a positive profit margin. There are basically three cost classifications:

  • CPV (Cost of Products Sold): common in industries, which produce their own products.
  • CMV (Costs of Goods Sold): usually trading companies that resell third-party products or companies that outsource part or all of their production.
  • CSP (Cost of Services Provided): applied to companies that work with the sale of services, such as consultancy or audits.

Another essential understanding of price correctly is to know the Contribution Margin (MC). The MC represents how much of the sale of each service or product will contribute to cover all fixed costs and expenses and still generate profit. This means that if the MC is not good enough, the company may be selling very well and still be in trouble on how to make a profit. The formula for calculating the Contribution Margin is:

  • Contribution Margin: Billing – (Cost of Services Provided + Variable Expenses)

Since the concern here is how to increase a company’s profits, you also need to know the minimum monthly revenue that the organization must have in order to be able to pay its bills and start to profit. This is called the Breakeven Point.

As we said, working with product and service pricing can be a very challenging task.

🔝 2 – Develop a new sales channel and evaluate existing ones

How about starting to sell online? Work with resellers? Or, is that physical store contributing to new revenues? All of this should be evaluated by those who understand the cashier numbers of your business, that is you!

When talking about sales channels, we include locations such as:

  • Physical stores (POS or points of sale).
  • Virtual stores (website, e-commerce, Free Market, Facebook, etc.).
  • Resellers (can be both legal entities and individuals).
  • Sales representatives.
  • Wholesale or retail distributors.
  • Among other channels that will vary according to each business model.

There is no formula here to know what will work for your organization. However, as a rule, when evaluating existing channels or considering new ones, account should be taken not only of revenue but also of deductions, costs, and expenses related to each channel.

🔝 3 – Have recurring revenue

How to increase the profit of a company? With new recipes? In many cases, you can maximize profits with customers who regularly pay for a product or service. Subscription models (like Netflix) or monthly fees work very well here.

Recurring revenue is an excellent way to shield a company in times of low demand, in addition to working with a very important point: customer loyalty. You may ask yourself: but can every business have recurring revenue?

Of course, yes! The shirt company, for example, may have a contract for a specified period that will ensure that the wholesaler buys its products for 6 months. A store can think of loyalty programs or even partnerships. Anyway, just use your creativity. The goal you should keep in mind is that in order to improve profit you must think about how to have customers who pay X value over a period of time.

🔝 4 – Organize the financial

This is perhaps the main tip. Organizing the company’s finances means working on items such as categorizing expenses, costs, revenues, and investments, and understanding the average payment and receipt deadlines for your business, to name two examples.

When you have a financial organization, you put your house in order. Do you know when you clean the closet and discover clothes that you didn’t even remember you had? By organizing finance, you may notice, for example, that you are spending too much in some area of ​​the organization. This will make you much better able to develop action plans that address this.

🔝 5 –  Sell more to the same customers

New revenue can come from old customers, right? Think about this: gaining a new customer requires hard marketing and prospecting, and you will agree that all of this comes at a cost.

Have you ever heard of the 80/20 rule, also known as the Pareto Rule? She says that 80% of the consequences are the result of 20% of the causes. When we talk about sales, we say that 80% of your company’s income comes from 20% of your customers.

The tip here is to find out who are those customers who bring in the most money and make them buy more of your business. To do this, it is possible to offer loyalty discounts, make a sale in cash, etc.

To find the customers who bring the most money, you must use an indicator that measures the Cost of Customer Acquisition (CAC). In this article we explain better about CAC).

🔝 6 – Track performance indicators

Indicators play a leading role in management, as they provide organized and structured data, in addition to being fundamental in the foundation of the necessary decision making in a company. There are many people who believe that indicator management is only for large organizations, which is a mistake. The Key Performance Indicators, also called KPI (from English Key Performance Indicators) must be considered from the beginning of your business, as they are essential to give the company the Financial Organization that it deserves.

The sales area can use a Strategic Billing Indicator to better control whether the sales target is being reached each month, as well as its evolution over time. If it is noticed that the target is not being reached and as a consequence, the company is not being able to obtain profits, the indicators will serve as a basis for taking action in order to reverse the scenario.

In this case, it is possible, for example, to analyze the Tactical Billing Indicator by Sales Channel to find out which channel is generating the smallest variations in relation to what was planned. If more details are needed, the Operational Indicator Number of Salespeople per Channel can demonstrate whether there is any Cause x Effect relationship between the number of salespeople and the sales performance of the channel.

As you can see, indicators offer invaluable information to help your company understand what needs to be done to increase revenue. Knowing well about KPIs is essential.

❔How to increase your personal profit through forex?

1. Control your emotions

Find out what your biggest emotional barriers and difficulties are. That done, start to polish those feelings in you so that in a moment of pressure or unexpected results you do not act out of impulsivity. Be professional, give time and become a trader par excellence.

2. Master the basics

Do not proceed with trading if you do not know absolutely everything about leverage, margin account, lots, pips, types of operations, among others. Understanding all these characteristics is essential to be able to know other more complex resources.

3. Don’t invest what you can’t lose

Nobody invests in Forex thinking they can lose money, but it is necessary to allocate a value that will not be lacking in basic needs. Venture capital is one that can end, period. So, keep that amount well separated from the others and do not risk more than that.

4. Plan B

Forex is not a market that depends on the economy and crises do not affect it. What matters, of course, is the investor’s strategy. But that does not leave you free from any eventuality that may occur. Thus, diversify and invest in other assets such as stocks, real estate funds, etc.

5. Use a good method

Being a trader requires a way of operating in the market that will determine your future success. There are aspects of fundamental and technical analysis that guide this. Check this article and get to know more!

Did you know that it is possible to profit automatically through AI even with a full-time job? Check out this article to learn more

🔚 Conclusion

There are many actions that your company can take to increase profits. New revenue will bring more money, but, as we have seen, profitability is directly linked to the company’s expenses. This means that it is very important to have a financial organization in order to better understand and control each expense.

In addition, it is worth highlighting the balance point (we talked about this in tip # 01), which is the point of financial equality between total revenues and expenses in the same period. It is from this knowledge that you will be able to better think about how to increase profits because the break-even point will show the minimum that your company will need to profit.

😉 The best way to trade forex

There are two ways to invest with our AI in forex:

1. Automated with AI-Trading. Check out the 3 steps to trade automated with our AI.

automated trading with ai bot

By trading forex automated with AI, you will save time and improve your performance without monitoring the market and managing trading platforms.

With Automated AI trading you do not need MT4 / MT5 and other trading platforms to invest in forex. All forex trades are automatically placed into your broker account every time that our AI system identifies a new worthy trading opportunity. You can monitor the AI trading performance in real-time directly on our dashboard.

Automated AI trading benefits ✅

  • Setup in 3 minutes.
  • Totally hands-off, from anywhere.
  • Invest from just $100.
  • APY of 40% over the past 13 years*.
  • Lightning-fast execution & no slippage.
  • No commissions, no management fees.
  • Portfolio with 40 different automatic strategies.
  • No MT4/MT5 or other platforms required.
  • Test with a risk-free practice account.
  • Trading results directly on our dashboard.

Don’t you have a broker account yet? Our AI is integrated to trade automated with the broker FXCMClick here to open an account with FXCM.

Advanced forex trading strategies and algorithms 

The foundation of successful trading in the forex market is having a trading strategy. It’s based on a specific methodology that best suits your trading needs. Strategies could be manual, automated, or a combination of both.

Over the past decade, there has been a proliferation of automated trading strategies made available for retail traders.

And while there are many serious traders with established track records for their trading systems, there are many more low-quality trading systems falsely marketed as high-quality by overly eager affiliates, making it harder for investors to navigate the market for trading signals.

There has also been an increase in the social copy trade. Where an operator can mimic other operators’ businesses in real time.

Whether using a copy-trading platform or an automated trading system, in almost all cases, this type of investing is considered self-directed and doesn’t require a power-of-attorney or another third-party money manager to handle your account.

Unlike other copy and social trading platforms, Wiseinvet’s AI has the ability to execute a huge set of market data. It does this by combining technical and fundamental analysis. This strategy can increase the accuracy of our automated AI-Trading and AI-signals.

Self-directed forex investors

Compared to investing in a managed fund, there is greater responsibility. Traders put it on self-directed traders who use trading systems. A self-directed trader should conduct more detailed due diligence. It can avoid falling for the countless low-quality trading systems that exist on the internet.

  • Good quality trading systems will have established track records (historical results), and there will be other quantitative performance rankings, along with qualitative data about the strategy developers and any proprietary math used to operate the strategy.
  • Bad quality trading systems will usually promise high returns that will not equally emphasize potential risk.

There are no guarantees that a strategy will perform well. But conducting proper due diligence can help traders assess various trading systems. They consider using them to aid their trading or investment strategy.

What is the AI performance in forex trading?

The Win Rate of our AI varies according to the period and can reach up to 95%. The performance is based on the efficient frontier measurement metric, which means that our model is profitable whenever the Win Rate is greater than 60%. All strategies of our AI trading system seek stable returns and sufficient results to achieve an average return of 40% per year (APY), without the use of high leverages.

We understand that what matters in forex trading is the final result. Thus, the investor needs to consider that Win Rate is not always the best metric to measure performance in forex, as other signal providers disclose. For instance, out of 100 trades, only 1 trade may be enough loss to make the 99 trades not profitable. In this case, the Win Rate would be 99%, but the final result would be unfeasible (negative).

We focus on the return of 40% of APY and not just on Win Rate.

It is essential to observe that forex brokers may charge spreads, commissions, and overnight fees in your trading account, and these factors can affect the AI performance. You can check our forex trading track record to understand more about AI trading performance by clicking here.

How much do I need to trade forex with AI?

You can start in forex trading with free AI signals or an AI trading account and deposit just $100 in the broker. It is also possible to test using a risk-free practice account with our AI trading system. However, to do efficient risk management in real accounts, we suggest you start at least $100. Notice that some forex brokers require different initial deposits to trade forex.

What is the trading strategy of our AI?

Our AI strategy is the combination of different AI trading systems, with more than 100 features, that define 40 different strategies which simultaneously consider: Quotes of the 28 forex pairs, Supports & Resistances in different time frames, Trends and Counter-trends, Cross-indicators, Index of each pair, Economic Calendar, Investors Sentiment.

Our AI analyzes those fundamental, technical, and sentiment factors that affect forex trading, and all criteria are evaluated in real-time using different weights. After completing the analysis, the choice of the signal emission strategy is made considering the increased likelihood of short-term profit and the amount available for investment.

Using technical analysis, our algorithm considers not only the patterns of various trends, including support and resistance levels and cross-indicators, but our AI is also able to create its own real-time index for each currency pair, which is used to identify what is the best direction and target.

In relation to fundamental analysis in forex, the AI makes a correlation within the economic calendar to find news data that can affect specific currency pairs.

What is the best forex broker for my country?

We have listed here some of the top forex brokers to trade, such as FXCM and Oanda. However, as long as not all forex brokers accept accounts from all countries, you need to check availability to open a Forex trading account directly with the broker. We have been working to identify the best foreign exchange brokers for each country, as you can see below:

Did not find a licensed forex broker in your country to trade forex? Remember that forex trading is not regulated in all jurisdictions, but most countries allow their citizens to open an fx trading account with foreign brokers. For example, this is the case for forex in Nigeria and Brazil.

How long should I hold my investments?

The great famous investor Warren Buffett says if you don’t feel comfortable owning a stock for 10 years, you shouldn’t own it for 10 minutes. Even during the period, he called the “Financial Pearl Harbor,” Buffett loyally held on to the bulk of his portfolio. This reinforces the importance of being patient when using our AI trading solution. 😉

🎯 Wiseinvest is committed to democratizing the retail forex trading market through AI solutions. We work hard to provide financial education, allow anyone in the world to invest easily with Automated AI trading and free AI forex signals. To assure the quality of the AI trading system, our multi-layer platform is integrated with AWSIBM Watson, and Google AI.

Enjoy other free articles about forex trading on the trading Academy and on our free forex Telegram channel.

Disclaimer: Forex and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money due to leverage. Forex trading is not suitable for everyone. You should consider whether you understand how forex and CFDs work and whether you can afford to take the high risk of losing your money.

The forex brokerages displayed shall disclaim the overall performance of traders in their platforms. Oanda warns that 76.8% of retail forex traders lose money trading CFDs. XTB warns that 80% of retail forex traders lose money trading CFDs.

FXCM warns that 74.74% of retail forex traders lose money trading CFDs. The performances aforementioned are not related to Wiseinvest AI forex trading and AI forex signals system. You can check the performance of our AI forex system on our dashboard.