i. Increased topline-gross earnings
iii. Greater product sales
iv. Service income
v. Increased bottom line-net earnings
vi. Profitability of operation
vii. Minimising costs
Viii. Increase in customer profile
ix. Increase in customer patronage
x. Credit worthiness
It should be recalled that business growth does not just occur. It requires planning. A deliberate planning is critical to business growth.
STEPS TO PROFIT PLANNING
It could be recalled also, that since those factors that account for business success inevitably account for business growth, it may not be out-of place to say that while discussing business growth, the business man should properly note the factors for business success. Some of the factors are:
1. Developing a business plan
2. A good knowledge of the business
3. Obtaining relevant, accurate and timely information about how the buying is operated and the activities of competitors
4. Profile of customers
5. Profile of competitors
6. Effective management ability and managerial competence
7. Be current and flow with the trend of charges with business
8. Always be concerned about customers satisfaction know their taste/preferences.
9. Be innovative and introduce new pattern of doing the same thing
10. Sell at relatively reduced price for higher turnover.
Profit planning refers to the activities of enhancing business total earnings-gross, earnings and net earnings to achieve profit objective of the firm.
One major factor that limits organisation’s profit is scarcity of resources. This calls for efficient use of available scarce resources which inevitably places emphasis on the planning function of management. In order to achieve business growth especially in terms of increased earnings, there must be proper planning.
According to Austin (2000:71), “it is with a view to achieving firm’s goals that great emphasis is placed on budgeting. A budget, hence serves to bring together the separate plans of different departments in an organization and provide the means of coordinating the
marketing, production and financial activities of the organization (Molokwu, 1995) quoted in Austin (2000).