The Clifton Review 

The Clifton Review is a tri-weekly column that examines the question of the Clifton project along with the evolution of the war between two billionaires. We covered the start of this war with articles describing the battle over easement rights, the mysterious burning of a home, the blocks to rebuilding, and countless questionable court filings.

While the 2018 series salutes fashion mogul Peter Nygård’s Golden Jubilee detailing his rags to riches story, his incredible business success over these past fifty years and an inside look at how he did it, The Clifton Review will also continue to address current affairs as they relate to the good of The Bahamas.

Increasing Business Income

By P.J. Malone

Effectively strategizing is key to averting threats and enjoying business gains.

Initially, we focused on achieving the goal of ‘maintaining a business customer base of 150 current customers throughout the current fiscal year’.

Besides the strategies of ‘building a community with your store’ and ‘surprising your customers with a gift’, we’ve previously talked about other strategies for increasing customer loyalty. There are lots of loyalty program ideas that you can research that range from offering points to customers that accumulate and that can be used for discounts or free gifts all the way to offering free services for loyal clients.

Now, let’s focus on the goal of ‘increasing the business income by 20% for the upcoming fiscal year’. Remember, this is similar to what fashion mogul Peter Nygard focused on when faced with the 2008 recession. As he put it, he refused to join the recession and instead saw an increase of 25%.

It may be difficult to imagine such a thing—that you can actually refuse to join a recession—but Peter Nygard proved that it can be done. He appears to have a natural ability to effectively strategize to achieve his business goals, which likely greatly contributes to the reason he was able to turn his company into the multi-million-dollar success it is today.

Following in Nygard’s footsteps, what strategies can we employ to increase the business income by 20%? First of all, determine what 20% is in actual dollar amounts.

Then analyze what that translates to. In other words, what does that amount represent? Does it translate to the sale of 10 of a particular product each month? What about maybe 5 more add-on items each week? Or, could it possibly mean two new customers each month? 

The answer to what it translates to depends on the business you are in. The answer also determines the type of strategies that need to be employed. But before we get to that, there’s this.

One of the core things businesses tend to focus on when trying to increase their bottom line is to reduce cost. This is a good place to begin if you can see how this would be possible without compromising business operations. Nevertheless, even if it’s a little cost cutting, every little bit can help you achieve your goal.

Here are cost cutting areas to consider; however, keep in mind that your focus will depend on your particular type of business.

• Review suppliers and shipping costs for any products you bring in.
• Consider how you can use technology more efficiently, like working toward becoming paperless and thus saving money on printing ink (which is ridiculously expensive) and paper.
• Review operational costs—find ways to be more energy efficient like powering down nonessential appliances and machinery after business hours. 

Remember, it has to happen in a way that will not compromise business operations. No sense cutting costs in a way that creates additional business challenges.

For example, avoid layoffs unless you see waste and redundancy in your business. Often times, layoffs can do more harm than good because it impacts employee morale which affects the business’ levels of productivity and can potentially harm sales.

Instead, enlist the support of your staff. Associates would be far more motivated to help you reduce cost in place of any layoffs.

Do you have a large office building with space that’s not in use? Consider renting that space out to independent contractors who may want office space in a more cost effective way than renting on their own. Also consider renting it out to a business for storing files.

Depending on the type of business you are in, consider bartering with other businesses for items or services you would normally need to purchase. For example, airlines are pretty open to battering if you also possess something that they need. 

If you are a clothing store for example, you may not have anything to offer an airline but you can do a trade with the local television station (in terms of reporters wearing your clothes in exchange for getting free advertising).

Consider the business you are in and who could benefit from a trade with you.

Now that we’ve covered cost cutting, we’ll focus on strategies for increasing income next.