Increasing Profits: Three Guiding Rules

For a company that is looking to build a sustainable, profitable business model, we believe that there are three primary rules for increasing profits and remaining profitable.

1. Work to align the interests of all of the companys stakeholders, including shareholders, employees , business partners , customers, vendors , and even the community in which the company is located. This represents a commitment to the principle that long- term business success is built by contributing to the success of all constituencies.

2. Approach each endeavor with a strong work ethic . This demonstrates respect for the fact that nothing replaces hard work. It exemplifies a belief in the old saying: The harder I work, the luckier I get. And, as a corollary, that good enough is never good enough.

3. Strictly adhere to a consistently applied business process. In this case, it is as simple as: make a plan, clearly communicate the plan, monitor results, and react to them with changes as necessary.

When seeking to increase profits by a certain percentage and within a specific time range, there are two options: raise prices or reduce expenses.