The fast economic development pushes industries to advance and develop more efficiently year by year. Since the world is currently functioning as a global village, all the economic systems have inbound connections. The ultimate profitability and cost-effectiveness of products and services may depend upon the marketing values of the global demand. Today, corporations are in competition to identify the novel trends in accessing capitals which run the market values.
The CEO of RNR Group, Swapnadip Roy, gives comments on important issues within the company’s internal development structure about profitability, cost and capital.
Driving your business more effectively and profitably
The profitability of a business depends upon several factors. It is important to keep connecting all those factors to drive profitability towards the productive objective.
Reducing the cost of expenses
There might be a need to increase business expenses in order to take your business to the next level but in most cases analyzing your business in depth will lead you to a core understanding of business processes enabling you to see exactly what the business engine is running on. By knowing the facts of your core business model, you will be able to cut down the necessary cost of your company to increase profitability.
“In case of a recession type scenario cost cutting might make sense but it is hard to let valuable and high quality resources as well as highly skilled employees let go just for the sake of higher profit. I prefer to have less profit but have a good and lasting relationship with the team as well as keep focusing on high quality services rather than having a 15% increase to annual profit. Only and only if it would be absolutely necessary I would actually consider cost cutting but not in any case as a priority for the company’s profitability. Stakeholder and shareholder relation in our work environment is valued much higher” – Swapnadip Roy.
Increasing the turnover
When the business increases its turnovers, it may automatically direct into profit. The multidimensional income is the core concept here. It is important to diversify your business and work in multiple sectors and industries at the same time. Diversification is crucial for business sustainability and survival.
“Diversification is about having multiple options available and an increase of experience from different fields. You use the options and experience to mix and match between sectors and industries to come up with a unique market proposition” – Swapnadip Roy.
Access to capital
Capital is managed by people, in order to get capital you need to get the people first. As Swapnadip Roy, CEO of RNR Group said: “Widen your network in different regions so you can accommodate your requirement of capital to different industries, investment plans, and projects”.
The things to remember
The profitability and effectiveness of core business processes within a company are important matters to analyze proportionally. Corporations should have the potential to stretch and enhance these factors successfully but most of it comes down to managerial decision making, company’s culture and values. To compete in a crisis market against others may require more than a regular business model, in fact, solid people connections and strong partnerships is the way out to survival.
About RNR Group
RNR Group is a leading international trade and business management group focusing on providing personalized business solutions to private clients internationally, powered by high-end services and experience. RNR Group is actively following the latest change in global markets to remain at the forefront of the industry.