How to increase company income. How to increase profits and make your business successful

Ministry of General and vocational education RF

Department of Economics and Management

How to increase the profit of the enterprise
(analysis of enterprise profit)"

Completed by: student of the RTS-97 group

Aslamov D.A.

Checked by: Shurko O.V.

Introduction...…………………………………………………….……………3

The concept of profit and its functions………………………………………..4

The concept of profitability of a trading enterprise…………………………………………………….5

The role of profit in the formation of the financial resources of the enterprise………………………………………….5

Factors affecting profit………………………………………….8

Factors affecting profit (table)….………………….……10

Ways to increase profits at the enterprise…………………………………………………………...11

Afterword…………………………………………………………....12

Introduction.

Nowadays, in a market economy, there are more and more commercial enterprises. Every business strives to make as much profit as possible. minimal cost. To ensure the profitability of his business, an entrepreneur should deeply analyze the current situation in the market, as well as within his enterprise.
Achieving the main goal - maximizing profits is possible only with proper and thoughtful planning of the activities of a trading enterprise. In my abstract, two main indicators of the effectiveness of the trading activity of an enterprise are highlighted: profit and profitability. The first of them, in fact, is the purpose of the enterprise, the second indicator - the profitability indicator allows you to accurately assess the level of development of a trading enterprise, both as a whole and from various angles.

Russia's gradual transition from a centrally planned economic system to a market one raises in a new way the question of how the enterprise's economy should be managed. Traditional structures and ways are changing. Under these conditions, the management of enterprises, studying and shaping what is called civilized forms of market relations, become a kind of
"architects" of the development of new methods of conducting the economy of the enterprise.

In a market economy, a special place is given to an entrepreneur who is able to perform an extremely important function in an enterprise -
“making profit”

The functioning of an enterprise in a market environment involves the search and development of each of them their own way of development. In other words, in order not only to stay, but also to develop in the market, an enterprise must improve the state of its economy: always have an optimal ratio between costs and production results; seek new forms of capital investment, find new, more effective ways bring products to the buyer, conduct an appropriate product policy, etc.

Each enterprise independently decides what, how much and how to produce goods (provide services), where and how to sell them, and, finally, how to distribute the income received (compensation funds, wages, savings). On all these issues, it makes decisions in accordance with its interests, answering with its property for mistakes or incorrectly chosen actions.

The concept of profit and its functions.

Profit is the most important category of the market economy.

There are several interpretations of the concept of profit. For example, K. Marx in
"Capital" defined profit as a modified surplus value that obscures its essence. The source of surplus value
"Capital" believed exploitation, the unpaid surplus labor of hired workers. According to Marx, this is an external form of manifestation of the essence of the bourgeois economic system, bourgeois production relations. Thus
- exploitation is the main thing that lies at the very basis of the Marxist interpretation of profit.

Modern economic thought considers profit as income from the use of factors of production, i.e. labor, land and capital. Denying profit as a result of exploitation, appropriation of unpaid wage labor, we can single out the following definitions of profit. First, profit is a fee for services entrepreneurial activity. Secondly, profit is a payment for innovation, for talent in managing a company. Third, profit
is a payment for risk, for the uncertainty of the results of entrepreneurial activity. The risk may be associated with the choice of one or another managerial, scientific, technical or social decision, with one or another variant of natural and climatic conditions. Risk can also be associated with unpredictable circumstances - natural disasters, interethnic and interstate conflicts, etc. Risk outcomes can be drastically different - big profit and, conversely, its reduction or even the ruin of the company. Fourth, it is the so-called monopoly profit. It arises when the manufacturer has a monopoly position in the market or when a natural monopoly. Monopoly profits are, for the most part, unsustainable.

Profit in a market economy is understood as remuneration for the use of a specific factor of production - entrepreneurship.
Entrepreneurship is a specific factor, because, unlike capital and land, it is intangible and does not appear in material form. Therefore, from these positions it is rather difficult to quantify the profit received by the enterprise.

In microeconomics, the concept of profit is defined as a value defined as the difference between total revenue and total costs, the difference between income and expenses.

Being the most important economic category and the main goal of any commercial organization, profit reflects the net income created in the field of material production and performs a number of functions.

First, profit characterizes the economic effect obtained as a result of the enterprise's activities. Making a profit in an enterprise means that the income received exceeds all the costs associated with its activities.

Secondly, profit has a stimulating function. This is due to the fact that profit is at the same time not only a financial result, but also the main element of the financial resources of the enterprise. Therefore, the company is interested in obtaining maximum profit, as it is the basis for the expansion of production activities, scientific and technical and social development enterprises.

Thirdly, profit is one of the most important sources of formation of budgets of different levels.

The concept of profitability of a commercial enterprise.

In a market economy, the performance of a trading enterprise is evaluated by a system of indicators, the main of which is profitability. Profitability is defined as the ratio of profit to one of the performance indicators of a trading enterprise. When calculating profitability, various profit indicators are used. Profitability indicators make it possible to identify not only the overall performance of a trading enterprise, but also to evaluate various aspects of its activities.

The role of profit in the formation of financial resources of the enterprise.

At the enterprise, profit is formed as a result of the sale of products.
Its value is determined by the difference between the income received from the sale of products and the costs of its production and sale. The total amount of profit received depends, on the one hand, on the volume of sales and the level of prices set for products, and on the other hand, on how much the level of production costs corresponds to socially necessary costs.

At the same time, the profit at the enterprise depends not only on the sale of products, but also on other activities that either increase or decrease it. Therefore, in theory and practice, the so-called
"balance sheet profit". Its name speaks for itself. It consists of profit from the sale of products (revenue from the sale of products without indirect taxes minus the costs of production and sale of products) plus non-operating income (income from securities, from equity participation in the activities of other enterprises, from leasing property, etc.) minus non-operating expenses (costs for production that did not produce products, for the maintenance of mothballed production facilities, losses from debt cancellation, etc.)

In addition, gross profit is allocated, which is the balance sheet profit minus or plus the financial result from operations with fixed assets, intangible assets and other property.

Thus, book profit (Pb) can be determined by the formula:

Pb \u003d + Pr + Pi + Pv.o. , where
Pr - profit (loss) from the sale of products, performance of work and provision of services,
Pi - profit (loss) from the sale of the company's property,
Pv.o. – income (losses) from non-sales operations.

As a rule, the main element of balance sheet profit is profit from the sale of products, performance of work or provision of services.

Profit from the sale of products depends on internal and external factors. Internal factors include: the acceleration of scientific and technical progress, the level of management, the competence of management and managers, the competitiveness of products, the level of organization of production and labor, etc. External factors that do not depend on the activities of the enterprise include: market conditions, the level of prices for consumed material and technical resources, depreciation rates, taxation system, etc.

Internal factors act on profit through an increase in output, improvement in product quality, an increase in selling prices and a reduction in production and sales costs. The amount of profit from the sale of products is determined by the formula:

Pr \u003d (Ci - Ci) * Vi, where
Qi - selling price of a unit of the i-th product,
Сi - unit cost of the i-th product,
Vi is the volume of sales of the i-th product.

Income is taxed, so in practice it is customary to allocate taxable income. The latter represents gross profit minus deductions to reserve funds, income from types of activities exempted from taxation, deductions for capital investments.

As a result, the so-called net profit remains at the enterprise, as it is commonly called in theory and in practice. In terms of its value, it represents taxable income minus income tax.

The company pays dividends and various social payments from its net profit, forms funds. As a result, profit remains unused, or a loss not covered by money.

In the conditions of market relations, as world practice shows, there are two main sources of profit.

The first is the monopoly position of the enterprise in the production of a particular product or the uniqueness of the product. Keeping this source on relatively high level involves constant product innovation. Here, one should take into account such opposing forces as the antitrust policy of the state and growing competition from other enterprises.

The second source is related to production and entrepreneurial activities, therefore, it concerns almost all enterprises. The effectiveness of its use depends on the knowledge of market conditions and the ability to constantly adapt the development of production to it. Basically, it all comes down to marketing. The amount of profit in this case depends: firstly, on the correct choice of the production direction of the enterprise for the production of products (the choice of products that are in stable and high demand); Secondly, from creating competitive conditions for the sale of their goods and services (price, delivery time, customer service, after-sales service, etc.); thirdly, on the volume of production
(the greater the volume of sales, the greater the mass of profit); Fourth, from the product range and reduce production costs.

The normal activity of any enterprise depends on profit, because:
. profit ensures expanded reproduction (capital investments in fixed assets and an increase in working capital),
. profit is necessary for the development of R & D (research and development work), providing scientific and technical progress,
. profits finance social spending,
. profit is necessary to pay dividends, and therefore investments depend on it.

In addition, the profit of the enterprise has a wider meaning, because. income tax is paid out of it, which is part of the income from which the state budget is formed.

Factors affecting profit.

The identification of factors affecting profit implies the study of the economic conditions for its formation. Economic conditions can be both internal and external. Under their influence, the absolute value and the relative level of profit change. To external conditions include such as: inflation, changes in legislation and normative documents in the field of pricing, lending, taxation of enterprises, remuneration of employees, etc. Internal conditions that affect the amount of profit, for example, include the number of employees in the enterprise, reducing the number of which, you can thereby increase or decrease wage costs, which in turn can affect the amount of gross profit and, accordingly, the amount of net profit.

Factors affecting the amount of profit can be divided into two groups, as it were. The first group includes the so-called main factors that directly affect the volume of profit of a trading enterprise. These include:

1. Profit (loss) from the sale of goods.

2. Profit (loss) from non-trading activities of the enterprise.

3. Balance of income and expenses on non-sales operations.

4. Profit (loss) from the sale of fixed assets.
The second group includes the so-called interdependent factors:

1. The volume of sales of goods.

2. Retail prices for goods sold.

3. Distribution costs.

4. Capital-labor ratio of workers.

5. Tax intensity of the enterprise.

6. The number of employees of the enterprise.

7. Turnover and composition of capital.

8. Costs attributable to profit.

If we talk about the main factors affecting profit, then we can say that in practice, gross (balance sheet) profit is mainly created at the expense of profit from the sale of goods, but it can be increased
(reduced) by the amount of profit from the non-trading activities of the enterprise, by the amount of the identified positive (negative) balance on non-operating transactions, by the amount of profit received from the sale of fixed assets (moreover, the profit (loss) from the sale of fixed assets is the difference between the selling (market) and their original price or residual value, taking into account revaluations caused by inflation.
If an excess of the initial cost and incurred costs associated with the disposal of fixed assets and other property over the amount of proceeds from the sale is revealed, then the gross profit of the enterprise is reduced by the amount of this excess. If, on the contrary, the amount of proceeds exceeds the initial cost and expenses for the disposal of fixed assets and other property, gross profit is increased by this difference).

Interdependent factors as well as the main ones strongly influence the amount of profit. These factors are not accidentally given this name. Their peculiarity lies in the fact that each of them to some extent influences or is influenced by other factors from this group. Therefore, dividing the subsystem of interdependent factors into individual elements- indicators, it is possible to identify the degree of influence of each of them on profit based on the application of methods and techniques of economic and mathematical analysis. First, the impact of each of them on the amount of profit is evaluated, and then their combined impact. Using complex method analysis reveals the following the necessary conditions for the normal functioning and development of the enterprise:

T’ > T""> T""" > T""""> T""""",

where T' is the rate of profit growth, T"" is the growth rate of trade, T""" is the growth rate of distribution costs, T"""" is the growth rate of the capital-labor ratio of workers,
T"""""- the growth rate of the number of employees.

Growth factors of this or that indicator are calculated by their successive ratio. The intensive development of a trading enterprise can be characterized not only by an increase in turnover and profits, but also by an increase in the productivity of trade workers, an increase in capital, etc.

For example, the costs of dealing with retail highly dependent on size wages employees, various deductions to off-budget funds. A decrease in distribution costs entails, respectively, a decrease in wages and different kind deductions. This, in its own way, can increase profit margins, but at the same time, it can undermine the incentive for workers to work and greatly reduce labor productivity, which can lead to very high costs to restore the health of the staff. In foreign practice, in this regard, a system of employee incentives is used, where, along with salary increases, the so-called participation of employees in economic activity enterprise, in which it is understood that employees have the right to purchase shares of enterprises at preferential prices, and then can receive dividends on the purchased shares.

It is assumed that the return on the increase in labor costs should grow faster than the size of its payment. The enterprise distributes this or that part of the profit not in the form of cash payments, but in the form of shares or transfers it to the bank accounts of employees, forming a credit fund, which the enterprise puts into circulation, which to some extent reduces the need for borrowed funds, while reducing the cost of paying interest on bank loans.

The amount of profit in trade also depends on the volume of demand for goods and their supply. A decrease in demand for goods can lead to both a decrease in gross income from sales and a reduction in gross profit.
The regulator of the ratio of supply and demand in the market are the retail prices of goods. At low prices for goods, the volume of demand for them is greater, and at high prices - less, since there are cheaper substitutes for these goods. As sales increase, the rate of profit increases, then its growth slows down, and finally it stabilizes or decreases, depending on the properties of certain groups of goods.

Thus, profit is influenced by two interdependent factors: distribution costs and sales volumes of goods. Other factors also directly affect profit and each other.

Ways to increase profits in the enterprise.

Each enterprise should provide for planned activities to increase profits. In general terms, these activities can be of the following nature:
. increase in output;
. improvement of product quality;
. sale or lease of surplus equipment and other property;
. reduction of production costs due to more rational use of material resources, production capacities and areas, work force and working hours;
. diversification of production;
. expansion of the sales market, etc.

From this list of activities it follows that they are closely related to other activities in the enterprise aimed at reducing costs.

In the conditions of market relations, an enterprise should strive not only to obtain maximum profit, but also to rational, optimal use profit already made. This will allow not only to maintain its position in the market, but also to ensure the dynamic development of its production in a competitive environment.

Afterword.

So, from all of the above, we can conclude that the analysis of the economic activity of a trading enterprise cannot do without the analysis of such indicators as profit and profitability. These two indicators fully reflect the efficiency of the trading enterprise, show the prospects for its development in the near future. Timely calculation and analysis of these indicators will lead in the future to stable growth and development of a trading enterprise, profit maximization, reduction of distribution costs and an increase in the pace of development.

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Each enterprise should provide for planned activities to increase profits.

In general terms, these activities can be of the following nature:

increase in output;
improvement ;
sale or lease of surplus equipment and other property;
reduction of production costs due to more rational use of material resources, production capacities and areas, labor force and working time;
diversification of production;
expansion of the sales market, etc.;
rational use of economic resources;
reduction of production costs;
boost ;
liquidation of non-production expenses and losses;
raising the technical level of production.

In a market economy, the importance of profit is enormous. The desire to obtain it directs commodity producers to increase the volume of production needed by the consumer, reduce production costs. With developed competition, this achieves not only the goal of entrepreneurship, but also the satisfaction of social needs. However, economic instability, the monopoly position of commodity producers distort the formation of profit as a net income, lead to the desire to receive income, mainly as a result of price increases.

Despite the fact that profit is the most important economic indicator of the enterprise, it does not characterize the efficiency of its work. To determine the effectiveness of the enterprise, it is necessary to compare the results (in this case, profit) with the costs or resources that provided these results.

The main factors for increasing the profit of the enterprise

As you know, sales profit is the difference between sales revenue and the total cost of products, works, services. Thus, there are two ways to influence (increase, decrease) the profit of the enterprise:

the first way is cost reduction;
the second way is to increase revenue, i.e. sales volume.

Consider an example of the interaction of these paths (Fig. 13.1). To increase profit by 100 thousand rubles, it is necessary either to reduce costs by 100 thousand rubles, or to increase sales by 594 thousand rubles. (2994 - 2400).

Obviously, the most profitable option is to reduce costs, since:

Rice. 13.1. Ways to increase profits:

1 - initial version; 2 - the first way, cost reduction; 3 - the second way, increase sales

reducing costs by 4.1% is much easier than increasing sales by almost 25%;

an increase in production volume requires additional costs, including working capital;

increasing sales requires conquering certain market segments.

It should be noted that cost reduction for the enterprise is an objective process. At the same time, not only because of the increase in profits, but also in connection with the competition and the need to reduce prices for manufactured products in certain situations. In these cases, in order to reduce or increase profits, it is necessary to switch to the release of new products in a timely manner.

The main factors influencing the cost reduction of the enterprise:

Achieving an appropriate level of labor productivity.
Ensuring the appropriate turnover of the company's funds and, above all, working capital and their sources.
Optimization of enterprise variable costs.
Optimization of fixed costs, i.e. overhead, general business and commercial expenses.
Optimization of the capital structure of the enterprise, own and borrowed funds.
Implementation of management accounting, improvement of budgeting.
Supply cost optimization.
Cost management.
Other factors.

Decreased stock levels.
Elimination of all kinds of losses and unproductive expenses.

The main factors for increasing sales and revenue:

I. Factors - management requirements.

Flexible production, allowing a constant increase in its volume, timely updating of products, expanding the range.
Compliance with concluded agreements.
Optimization of prices and pricing.
Security highest quality products, works, services.
Periodic review of commercial lending policy.
Other factors.

II. Factors related to possible reserves.

Conquest and development of new markets.
Dealer network expansion.
Effective activity of the enterprise for the sale of products.
Other factors.

The purpose of enterprise profit management: optimization of profit planning; obtaining at least the planned profit; optimization of profit distribution in terms of business efficiency.

It should be noted that all activities of the enterprise are aimed at realizing the goal of profit management. Part of this activity is focused on the implementation of another, no less important goal - ensuring the liquidity and solvency of the enterprise.

A profitable policy is as follows.

Analysis of actual financial results:

the relationship between the income and expenses of the enterprise and its profit,
financial analysis of revenue, profit and profitability of types
profit - from sales, balance sheet, taxable, net;
analysis and optimization of enterprise costs in the process of developing the cost, including the cost of goods sold, commercial and administrative expenses;
marginal analysis and evaluation of marginal indicators;
analysis of the capital structure and associated financial leverage, its impact on the return on equity according to the DuPont formula;
analysis of indicators of the turnover of the company's funds and its impact on the profitability of the company's own funds according to the Dupont formula;
assessment of profit per share in joint-stock companies.

Analysis and assessment of the role and place of profit in internal financial relations, in the centers of financial responsibility.

Development and justification of a business plan (financial plan), financial budgets of the enterprise, including a forecast profit and loss statement based on the results of the analysis and other economic calculations. Types of documents and their content are determined by the enterprise.

Development of a profitable enterprise policy related to the distribution of net profit, including:

dividend policy;
investment policy;
relation to the consumption fund;
relation to the reserve fund at the expense of net profit;
assessment of other payments from net income.

Development of an organizational plan of the enterprise, a kind of profit management regulation, including the principles of operational activities for the implementation of the planned profit.

In addition to the main provisions of the profitable policy outlined above, other provisions may be reflected in the relevant documents.

In this article, we would like to talk about how to increase the profits of an enterprise, store or company - after all, this is not an idle question. If you do not pay due attention to net profit, you can find that the enterprise is working in vain, and then the business is at risk. After all, in business - whether it is a store, an outlet, a service company or an enterprise for the production of goods - everything depends on net profit- business collapses when it disappears.

How to increase the profit of the enterprise

One of the great ways to increase the net profit of an enterprise is to organize planned activities aimed specifically at increasing profits, namely:

improving product quality,
increase in output,
reduction in the cost of production (can be carried out through a more reasonable use of the material resources of the enterprise, optimization of the use of production capacities, as well as optimization of the use of labor, working time and working space),
expansion of the sales market,
reducing production costs,
elimination of non-production costs and losses,
increase in labor productivity,
raising the general technical level of production.

The goal of managing the profit of an enterprise should be planning the amount of profit (For efficiency, optimization is necessary this process! We are ready to help you with this!) and receive at least the planned profit. The resulting profit should be distributed correctly (from the point of view of entrepreneurial activity), and optimization of this process is also necessary. After analyzing the current situation at the enterprise, it will be possible to clearly say how to increase net profit in this particular case.

How to increase the profit of the store by the number

Any business requires rational management, therefore, puzzled by the question of how to increase the profit of a store or outlet, we assure you that you are on the right track! Let me give you some recommendations.

First of all, increasing profits in the store can be achieved in several ways:

influence buyers to make more sales,
save on material support of business processes,
increase revenue in other ways.

Secondly, it is important to understand that it is extremely difficult to influence the behavior of store customers, and it is rarely possible to save money on the material support of business processes due to the fact that business processes have already been optimized. Therefore, it remains to increase revenue in the store in other ways. What kind? Read on.

Thirdly, having understood that it is necessary to increase sales, we suggest you remember the methods that you can use:

manage product offerings
manage the promotion
control the selling price.

If you want to increase net profit, then work must be done on each of these points. It is very important to expand the range, and do it regularly, as well as improve the quality of the goods sold. Some companies mistakenly believe that if they reduce the quality of goods and thereby reduce their costs, their net profit will increase. In fact, the opposite is true. As quality increases, sales increase. It's proven!

Separately, let's talk about price management - this includes promotions, gifts for purchases, discounts and the provision of the opportunity to make purchases on credit. Use these methods effectively!

How to increase company profits

Increasing company profits is a very individual process. Using the information from this article and our recommendations, you can independently develop a strategy and decide how to increase the company's profit in your current situation, or you can contact our specialists - for example, our Tax Consulting Center based on the Accounting Services Studio.

So, before developing a strategy, it is necessary to conduct an analysis that will help to find the main problem of the company, which does not allow net profit to grow. This underlying problem limits the company's profitability and value and can be:

Lack of power - the inability to provide the required amount of power.
The lack of a market is the lack of required amount orders to increase profits.
Lack of time - the company takes too long to respond to market needs and thus jeopardizes its ability to fulfill its obligations to customers and, moreover, to expand its business.

There are only two ways to overcome the above problems:

Increasing profits through increased productivity.
Increasing profits through increased sales.

The work to which you give yourself completely brings income and satisfaction. If you invest energy, knowledge, time in an enterprise, there will definitely be a return. But the road to success is long if the priorities are wrong.

economic (business makes a profit for a limited time);
personal (an occupation to which you have to give all your time brings satisfaction);
social (being a businessman and making decisions on your own is more prestigious than working as an employee).

It is better to measure luck in quantitative terms: in rubles, dollars, percentages, calendar periods. Even Napoleon Hill, the most authoritative author on the topic of success, advised setting goals correctly: not “become rich”, but “earn 20 thousand rubles in the first decade of April.” He also discovered the main secret of how to turn a startup into a profitable activity: do not limit your imagination, constantly direct your thoughts towards the final result. Therefore, the first recipe sounds like this: the word "impossible" does not exist.

Business and Economics

Income, money, break-even point - all these are economic categories. What does a novice entrepreneur know about the economy, market categories, trends, laws of management and marketing? To organize a commercial project, a diploma of a higher educational institution is not required, but you will need to master the minimum theoretical concepts: market, business plan, income, loss, liquidity, competitive advantage.

Whatever idea the future entrepreneur visits, he should remember the main thing: the business must be profitable. This axiom refers us to the economic nature of entrepreneurship. The second recipe for success is: "Think like an economist."

Profit is not only a pleasant bonus to the effort expended. This is an economic category that performs several functions:

shows that the entrepreneur is moving in the right direction;
stimulates the owner and employees, makes them work harder;
generates resources for further development.

The main task is to learn how to spend correctly, to extract income from each ruble invested. This is required for full-fledged work and development. In the first months, the business may bring losses, but there always comes a time when unprofitable activity is replaced by income. This day is called the breakeven point.

Important! Profits are like blood to blood vessels. She gives life to the enterprise. There will be no profit - the business will cease to exist.

Entrepreneurship and sports character

Business and sports are similar. The goal of a sporting event is to beat your opponents and take the main prize. This is the goal of the entrepreneur: to come up with interesting idea and be the first to occupy a niche.

There is a nuance: only a few manage to come up with a good idea “from scratch”. good ideas come knowledgeable and experienced. Imagine a newcomer to biathlon who has never skied before and wins a race. It's impossible. Surely, before taking a prize, he trained for 2-3 years.

Every company that produces any product needs a thoughtful approach to its marketing. Only specialists should deal with such issues, because improper sales planning can lead to a decrease in profits and even bankruptcy of the enterprise. Knowing how to increase sales revenue, any start-up company will be able to quickly recoup its costs and begin to receive the first profit.

Ways to increase profits, focused on the production process

Profit is the difference between the income received and the amount spent on the manufacture of the product. That is, only net revenue is taken into account, without any material costs. These include not only the purchase of products and materials necessary for production, but also the purchase of machine tools, their maintenance, the payment of wages to workers, advertising costs, etc. Therefore, to increase revenue, it is necessary to take a number of measures regarding equipment, labor and technological processes:

These are the main ways to increase sales profit by adjusting the production process.

Increasing profit outside of production

Equipment, personnel and the purchase of resources are the basis for obtaining products in cheaper ways. However, in order to increase revenue, sales are needed. Without the sale of goods, there will be no profit. Therefore, it is required to increase sales, and they depend on:

Product quality. The higher, the more people will want to buy such a product;
Market expansion. This point is the most important, thanks to it, the manufacturing company has many new customers, which means sales increase. There are several ways to expand the sales market, but it is advisable to combine them in order to achieve a result. For example, you need to organize an advertising campaign that will attract the attention of potential buyers, and at the same time establish relationships with wholesale customers - owners of their own trading platforms.

A well-thought-out advertising campaign can attract the attention of many buyers, and as a result, increase revenue. But, if the first point (quality) is not observed, people will very soon be disappointed in the product and stop buying it. To get regular customers, you need to take care of your reputation and not offer them low-quality goods.

Small note

Not all entrepreneurs have their own production and trade their own goods. Some prefer to limit themselves to supply only (network marketing, distributors of some brands, etc.). In this case, only advertising can increase profits. Usually at this level of business, its owners create their website and run an advertising campaign on the Internet.