How to achieve profitability of enterprises

Summary: The core of business operation is first of all survival, development, and ultimately to achieve profitability, profit is a measure of the excellence of an enterprise. So how can enterprises improve profitability? Due to the increasingly fierce market, many enterprises will encounter bottlenecks, do not get good profits, and even have losses. All enterprises in the process of development, whether it is profit or loss, there are signs and rules to follow. Here is a look at the relevant knowledge points about business profit and loss. A company in the end by what profit

1, the enterprise's strategic choice, that is, how to choose their own both advantages and better market space of the industry or project, in order to avoid the low-level duplication of construction and make themselves into passive vicious competition.

2, the adjustment and change of the enterprise business model, or enterprise profit model selection and construction. What kind of business model, not a simple form, it is related to the quality of business operations and the growth of business capacity.

3, the modernization of enterprise organizational structure, the traditional organizational structure has become an important factor affecting the development of the enterprise, is likely to make the enterprise sit back and lose the development of a good opportunity.

4, the development and progress of science and technology. Enterprise competition, in the final analysis, or the product is talking, no progress in science and technology, the development of enterprises lack a solid foundation.

5, the training and use of talent. Profitability of enterprises in the final analysis, or the role of talent, there is a good profit model without good implementation of talent, it is also an empty word. Talent is the most important supporting link in the enterprise industry chain, must be highly valued.

How to calculate the profit and loss of the enterprise

Enterprise profit or loss = operating income (such as income from the sale of goods) - operating costs (such as the cost of production) - operating taxes and surcharges - selling expenses (such as salaries of salespeople, advertising and publicity costs) - administrative expenses (such as salaries of management personnel, management of the regular costs) - financial expenses (such as interest on borrowed funds) + investment income (such as the purchase of stock income) + fair value of the investment. such as gains on the purchase of shares) + gains and losses on changes in fair value (such as price increases in investment properties) + non-operating income (such as state grants) - non-operating expenses (such as corporate fines) - income tax expense Positive is a profit, negative is a loss.

Types of corporate profits

1, operating profit: the operating profit of the enterprise is the enterprise's main business income (turnover) after deducting the cost of purchase of materials or commodities, personnel wages, equipment depletion and depreciation, business taxes and surcharges, increased investment income, net gains from changes in fair value.

2, enterprise financial profit (investment profit): is the enterprise long-term investment income and short-term financing income and the difference between the relevant costs, reflecting the long-term investment, short-term borrowing and lending and other financial activities of the economic benefits.

3, non-operating profit: is the difference between non-operating income and expenditure, reflecting the balance of non-operating income and expenditure.

4, total profit: the final results of all aspects of production and operation of the enterprise, is the enterprise's main business, other businesses, foreign investment, non-operating business aspects of the economic efficiency of the integrated reflection, but also our ability to profitability and investment efficiency, profit distribution and other analysis of the main basis.

What are the ways of enterprise profit and loss

(A) profitability

1, product profitability

Most of the enterprises are adopting this mode, but enterprises relying on product profitability rely on the general lowering of their own costs and lowering of their own prices, in order to be tremendously competitive in the market!

For example, we know Uniqlo, Ikea, Grandma's house and so on! All of these companies rely on the product to make a profit, they have a **** the same characteristics, that is, the price is cheap, and the product is not bad! All in all it's good value for money!

2, brand profitability

Brand profitability and product profitability ideas are completely different, brand profitability is not selling products, but the brand added value!

For example, the owner of LV once said a sentence like this: I never boycott A goods, because these customers who buy A goods, and so they have money that day, will definitely come to us to buy a genuine product!

3, mode profit

The so-called mode profit, in fact, is to earn money you can not see. For example, WeChat, a software with one billion users, is actually free! But the back can rely on games, advertising to make money. For example, millet, cell phones, TVs and other hardware do not make money, but the back can rely on APP, rely on advertising, rely on paid VIPs and so on to make money.

4, system profitability

Maybe we all know Hanting, but we may not all know, Hanting, such as home, Ctrip are a boss. The success of Hanting is a very typical case of system profitability, which can also be called integration profitability. First of all, we all know that Ctrip has gained a huge number of users by booking hotels and flights cheaply and conveniently. Secondly, we also know that the chain model of Ruijia, so that fast hotels have a standardized management process. So, at this time, he can take Ctrip's huge number of users, and Ruijia's standardized hotel management system and any less than ideal operation of private hotels to talk. As a result, in the end, many hotels to join the Huazhou group under the banner of a different door, change the LOGO, and for Hanting, just provide users and systems.

5, rent collection profit

Also called patent profit. For example, Huawei, if foreign countries want is to use 5G technology, is to pay Huawei. Another example is Qualcomm, all cell phone manufacturers to produce any one phone, Qualcomm is profitable. This profit model is also reflected in the copyright, copyright.

6, resource profit

Resource profit is also known as monopoly profit, generally because you can master a certain core resources, in order to realize a way of profit! For example, Dong A Gum, in order to monopolize the gum market, Dong A Gum 80% of the country's donkeys are in their own hands, peers have no way to compete.

7, financial profitability

Many Internet companies, with a large number of users, at the same time have a large number of transactions, and these transactions, if the funds in a platform over again, in fact, this business can realize financial profitability. For example, Alipay, such as WeChat Pay, such as Jingdong Finance and so on.

8, ecological profitability

Can also be considered national profitability. In the past, many people do their own money, but today you will find that many Internet giants are integrating, acquiring, and taking shares in well-known brands in various industries. If you are interested, you can check it out, many well-known brands actually have shares in Internet giants! This forms an ecosystem, which means that if you play a game today, I also have income; if you watch a movie today, I also have income; if you go to dinner today, I also have income? This creates an ecosystem.

(2) loss mode

1, the pursuit of performance growth, ignoring profit growth

In my daily research and consulting work, I found that many of the heads of manufacturing enterprises, often very concerned about how much scale, how much technical equipment, how much production capacity, how many sales, but to understand the profit of this most central issue, but even shook his head, it turns out that even the 3% of the profits There is no such thing.

2, the lack of service to take away the profits

Many enterprises quality service is just a front, once the call to find the service staff, they immediately replied unclear, I do not know, this thing and I have nothing to do with it, especially in the hotel catering industry is particularly serious. Some companies may be the lack of appropriate training and supervision of employees, some employees even think that doing service work is inferior work, such a mentality and concepts, resulting in a large number of customers due to poor service and loss of business, turnover and profit decline has become inevitable.

3, product defects to give up profits

Many companies have good product quality, but ignored some easy to detect the details, such as a famous juice drinks, the launch of various types of juice occupies the best position in the supermarket shelves, but the PET packaging products have a *** with the characteristics of the bottle cap is very difficult to open, especially a 10% orange juice drink, the mouth of the bottle is very large, but the bottle cap is to take a lot of effort to open the bottle, but the bottle cap is very difficult to open the bottle. Bottle cap but it takes a lot of effort to open, on the beverage of fast-moving products, because of the problem of product packaging leads to a lower rate of repurchase, bringing trouble to consumers, bringing losses can be completely avoided.

4, randomly launched price wars, advertising wars, promotional wars, burned profits

Market economy launched price wars, advertising wars, promotional wars are commonplace business behavior, but many companies to tactical behavior evolved into daily behavior, long-term advertising bombardment, the price of diving, once the frequency of advertising broadcasts a little less often, the terminal of the goods stagnant once the promotional period Once the promotional period ends, the immediate point of sale for several months. So continue the above behavior, drive the sales promotion, the enterprise is trapped in such a vicious circle can not extricate themselves from the circle, every time I see the financial statements of those high advertising and sales costs, as well as that less and less profit, or even loss at a loss.

5, inventory backlog, devouring profits

Many companies have good sales and profitability, but because the product has a clear off-peak season, bringing a large amount of inventory, such as air conditioning, down jackets, blankets, home textiles, cold drinks, can not be digested inventory occupies a large amount of money, can not be put into the reproduction of the profit so that the book is actually just to digest the inventory at all costs, discounts! In order to digest the inventory, discounts at all costs, even so there is still a lot of backlog of goods can not be digested, such as a down apparel enterprises, although sales of up to more than two billion, perennial inventory of four or five hundred million, to engage in anti-seasonal promotions, the effect is limited, and has become a black hole in the swallowing of profits. Between production and demand, the product itself is marketable, are affecting the level of corporate profitability.