In the 18th century, the modern school of economics gave the concept of profits and the law of profitability states when total revenue is decreased by total expenditure. The organization will seek its profits. However, redeeming profits is not that easy in the era of global economic instability and inflation. But with rising inflation, economists came up with different strategies to win-up profits. As the business market started to grow, these strategies were part of the Business Management programs. Most businesses use strategies to maximize their profits, and some of the strategies are viz.
Align Your Business With Profitable Strategies:
Strategies are the building block of a business, and once it comes to profitable strategies, they are considered the foundation of any successful business. Another will rule you out because strategies evolve with time, and you don’t evolve with time. So, some of the profit strategies which have been showing relevant results are as follows:
Keeping Track Of Financial Statement
To improve your profits, you have to understand your assets and liability. For that, you have to keep track of your financial statement. There are three types of statements that you have to observe.
While observing the balance of the sheet, you have to observe that all your investments are giving proper returns, and if not, you have to find a way to maintain the balance of the payments.
The strategies suggest that all the employees should be given their paychecks based on their work. The strategy believes that increments and monthly paychecks should also be given to the employees based on their productivity.
Business value strategy includes value addition as a business’s long-term goal. To achieve your long term goal, you have to follow the law of proportionate value and the law of proportionate returns:
Strategies of Proportionate Value:
Strategies of proportionate value state the investment an organization needs for a long-term profitable business. It states Net Present Value, which gives you an estimated investment to well-performing assets, giving you guaranteed returns.
Strategies of Proportionate Returns:
Strategies of proportionate returns state all the strategies that might help your business seek returns from your non-performing assets. The strategy involves concepts like discounts and the Internal Rates of Returns which allows you to decide if you want to disinvest your NPA or you can fix it.
Employee Engagement Rate
One of the most important and widely used profitable strategies is Employee Engagement Rate. One of the most significant investments of any business is their human capital, and if your human capital is giving you 100% returns, your profit will increase automatically. Employees’ productivity and profits are directly proportional to each other. Increase your employee engagement rate and see your profit rise drastically.
Optimised Human Capital
Human capital is one of the most significant investments of any business, and optimizing human capital can give you some actual results in increasing your profits. For example, Japan’s demographic location is suitable for heavy economic activity. The country only had human capital. So, they made their human capital so effective that they stand 3rd on the highest human capital index worldwide. Like Japan, you can optimize your human capital and add to your profits.
How can you improve employee productivity to redeem your profits?
As mentioned above, human capital is one of the biggest investments of an organization. And if your human capital is giving 100% returns, your profits will rise automatically. But the question is how to keep your employees productive to redeem profits.
Run A Productivity Check On Your Employees
You can run a productivity check on your employees with employee monitoring software which provides you with a productivity measurement, which allows you to evaluate the employee’s productivity. It also gives you the productivity percentage by which the employer can judge who has been working and who is not.
Track Employee Activity
You can track your employee’s productivity and activity with productivity tracking software. The application allows the employer to see what applications his employees have been working on during working hours, making the workspace completely transparent. Also, the domain blocking feature helps the employees to stay focused as the employer can block all the unproductive domains that might distract the employees during their working hours.
It is a proven fact that productivity and profits are always directly related to each other. And it is very important to observe, analyse and improve.
So, to redeem your profits, you have to follow the modern school of economics, which suggests optimizing and upgrading your human capital. When economic strategies and productivity blend together then not even the sky’s the limit.