Five Tips to Boost the Financial Profitability of Your Business

Tips to Boost the Financial Profitability of Your Business

In a context where generating profits is more difficult than ever, here are the secrets of “manufacturing” a strong profitability. Ten principles that Thierry Denjean, accountant and entrepreneur, applies and recommends.

“Many companies start or move without any strategy, so it’s impossible to succeed, and to build a profitable business, the first rule is to define a well-thought-out strategy … then stick to it! Too many entrepreneurs go back and change course when the chosen policy does not bear fruit immediately.

After working for a few years in large auditing and accounting groups, Thierry Denjean chose to stand on his own. In 1992, he created his structure, Denjean & Associates. Twenty years later, it has 70 employees and stands out for its excellent performance. The Denjean & Associés law firm is thus ranked the third most profitable French accounting and auditing firm by the journal La Profession comptable.

The latter, on the pretext that they have trouble selling to large companies that were their preferred target, decide, for example, to turn to SMEs. Or, they abandon their international development strategy as soon as they face unexpected complications … This is a mistake: if you have defined a sensible policy at the beginning, there is no reason to change. Experience shows that a good strategy always ends up paying off. So persevere! “

“It is impossible to build a profitable business in the long term by adopting a policy centered on a low-cost strategy, a company which, in order to distinguish itself, relies on prices lower than those of the market, can compete with any The company is based in a low-cost country, and as its products or services are standard products or services, its customers will instantly release it for the benefit of the first new entrant with more competitive rates.

Morality, whatever your business, quality is your only real asset to the competition. If you’re obsessed with providing quality products or services, you’ll see the benefits on the bottom line of your income statement!

Today, business leaders are almost all obsessed with the growth of their turnover, which can be explained by a number of reasons: first, for a manager, it may seem more rewarding to be at the helm. head of a company whose turnover increases from one year to the next, then, with a growing activity, the company has the means to occupy its teams and to avoid the specter of partial unemployment and In addition to these factors, there is pressure from the banks: the bankers do not appreciate that a company presents annual accounts with a turnover identical to that of the previous year, even down …But let’s say it loud and clear: these are false arguments by which entrepreneurs should not be trapped. Because what must obsess you, it is not your turnover, but your margin! In other words, you must focus on generating only high margin revenue. For this purpose, you must regularly review your customer portfolio, to ensure that everyone brings you sufficient profitability . If you do not make enough money with a particular client, tell him clearly, and tell him that you can not continue working in these conditions. He refuses to pay more? Do not procrastinate and put an end to your commercial links …

I recommend reiterating the analysis of your client portfolio every semester, and even quarterly if you can.

“IT is a job that can lose a lot of money without realizing it, because a leader feels that he knows a little bit about his company’s information system. he will be able to get cheap hardware and software and will be able to control his expenses easily if the computer is managed internally, which I myself have long thought … wrongly!

Indeed, by carefully studying the computer outsourcing market, we realize that using a provider is less expensive than having a computer service in the company. On the condition of agreeing to spend time to clearly define its objectives and needs, to make a call for tenders, to receive service providers, to compare their proposals, and negotiate rates … But the game is worth the candle. At Denjean & Associates, we took this step three years ago, and since then our IT spend has been divided by four! In addition, our information system has gained in security and reliability: unlike what happened before, it never goes down again. In short, we have gained everything in this outsourcing. Money,

“In today’s business world, people work badly, and everyone is constantly subject to solicitations that prevent them from concentrating: phone calls, meetings, colleagues who come to discuss or propose to go for coffee, hierarchical people wanting to make an emergency report on a file, etc. If you add up these different elements, and add to it the fatigue caused by journeys between home and the workplace, you get … One of the solutions to solve this problem is to set up an organization giving way to teleworking.This must be organized between the parties with the full agreement of the employees: under no circumstances can an employee be forced to work remotely.

In addition, the employer must cover the cost of the computer station and the means of communication set up between the employee and the company. The goal of teleworking is not to transfer certain costs from the company to the employee, but to allow the latter to work in better conditions and more efficiently! In our office, we test this system with some of our employees who work at home partially, one or two days a week. This organization allows them to enjoy the benefits of telework while preserving their link with the company. Now we are in the process of thinking with the staff representatives to offer the same opportunity to all our employees.

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