Consistently Increasing Profit – why is it so Difficult?

Profit is as important to a business as sunshine is to a beautiful flower. Without profit a business cannot grow, flourish or reach its full potential. So why is it that many businesses find it exceedingly difficult to consistently grow their profit?

Not enough attention is being given to the mega forces of competition and inflation. They are as inescapable as gravity. Competition erodes revenues and inflation increases expenses. They are constantly putting downward pressure on profit. To increase profit businesses need effective strategies to overcome both.

The best strategy to consistently prosper from competition and inflation is ‘applied innovation’. Businesses need to relentlessly pursue delivering more value for their customers. It’s not enough to innovate. Businesses need to create effective systems that consistently deliver this additional value.

Does your business have a person or a team whose specific responsibility is to deliver more value for your customers? Do they do it 8 hours a day, 40 hours a week, all year long? Are they good at it? Top performing businesses do this, and there’s a good chance your competition is doing this as well

Similarly, owners need to relentlessly pursue more productive ways of leading and managing their business. Examples include;

• A culture of innovation inside your business.
• Best practices in leadership and management.
• A dedication to employee engagement, productivity and satisfaction.

There are many differing views, opinions, and approaches to dealing with these two forces. Some businesses despise them, while others ignore them – at their own peril. Top performing businesses embrace competition and inflation and develop the very best strategies to prosper from them both.

“Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It’s not about money. It’s about the people you have, how you’re led, and how much you get it.”

- Steve Jobs