Achieving Your Profit Goals

By: Jeremiah (Jerry) Murphy

Profit-Planning requires some planning. For instance,you need a profit goal to work towards. That implies that your financial records, your company's balance sheet and income statement, are up to date and substantially correct and balanced. With those preliminary considerations in place, meeting your profit goals will entail the following steps.

1. Comparing estimates with the goal:

Involves comparing the estimated profit with the expected profit. If there is a large gap between the estimated profits and the expected profits, the measures should be taken.

2. Using alternatives to achieve the desired profit:

If you need to increase sales, here are some suggestions to consider that may help increase your sales volume:

  • Increasing sales promotion

  • Improving product quality

  • Providing better customer service

  • Provide after sales support to customers.

Perhaps you see that you need to reduce expenses to achieve your profit goal; if to, here are some suggestions on how to do that:

  • Minimizing business losses

  • Implement better control systems

  • Improving product quality

  • Increasing the productivity of human resource and machines

This short paper is to get you thinking about your business and the business profit.  All of the above suggestions have more to be said about them.  Books have been written, as they say. 

If you have any questions about this process, please contact me to discuss your questions.

Jeremiah (Jerry) Murphy