Strategies To Boost Small Business Profitability
Running any business requires a bit of financial know-how. Balancing revenue and expenditures consistently will be the key to your long-term success. Unfortunately, many small business owners get so bogged down by the minutiae of daily operations that they fail to plan for consistent profitability.
What to do?
What can you do to take your hands off the daily steering wheel in an attempt to plan your long vision? Where can you see yourself and your business in two years…. five…. ten? Failing to plan is a sure plan to fail. Implementing these strategies to boost profitability will have you making consistent coin even when your contemporaries may struggle. Take the following action steps, and watch your business thrive:
1. Find more customers. Oh, if it were only that simple--finding customers, the lifeline of your business, is an essential piece of your profitability puzzle. Where might your customers be lurking? What do they want? How will you solve their “problem” with your products and services? Being able to communicate these things to them in the form of:
Print ads, television, radio spots
Digital media marketing
Email marketing campaigns
Word of mouth referrals
Social media and online visibility
will significantly increase your chances of ensuring steady and consistent growth.
2. Gather more leads...cater to their needs. Advertising and marketing are just one aspect of getting more customers. You’ll also need to collect and organize contact information, reaching out in an effort to get their attention. You may be so busy with day-to-day activities that you have little time to focus on leads, but this is one of the most essential things you can do to continue to grow your customer database. Start a social media or email campaign and offer free information in exchange for contact information; follow up with these leads, continuing to build rapport and trust until this communication is converted to sales.
3. Find a way to expand the size of your “average” order. Don’t be afraid to cross-promote products during a sale or to upsell improvements and services with the promise of customer satisfaction. If you truly believe in your product and how it can enhance the lives of your customers, you’ll have no problem passionately describing how it can benefit them while you are asking for that sale.
4. Continue to add new products and services. While we’re talking about additional products and services, you’ll need to start brainstorming with regard to what your next latest and greatest will bring. Continuing to add products and services to your inventory will establish you as an industry leader and make you a trusted ally in the eyes of your customers.
5. Cut down on your expenses. Let’s talk bottom line for a minute--you can make all the sales you can handle, but if you are spending more than you take in, you’ll eventually be in the negative. Find ways to cut your expenses, such as:
Finding a less expensive supplier
Handling your own social media campaign
Outsourcing small jobs instead of staffing additional employees
Spending less on supplies
In doing so, you’ll have more to work with when making big financial decisions, and you’ll be able to stay afloat.
6. Evaluate your operations. As a business owner, you’ll need to constantly re-evaluate your procedures to ensure that they are all running efficiently. Investing money in areas of your business that are bringing in more revenue will be essential, as will cutting out products, services, and procedures that are sapping your reserves. Your focus should be on high-margin services and efficient procedures whenever possible.
7. Look for the greatest ROI. How much do you spend on your marketing campaigns? You need to evaluate the methods of advertising and customer retention that are yielding you the greatest return on investment, as it will allow you to stay on top of profitability issues and potential threats to your financial stability. The greater your ROI, the more opportunity you have to see great gains that can set you up for future success.
Want a boost? We’re here to help!
MaxGroup Business Solutions has the market cornered on stellar business strategies. A combination of passionate professionals, top-notch products and services, and a commitment to client success and satisfaction put you in a position for consistent growth and success. Join us today, and see how we can take your business straight to the top! Visit www.maxgroupbusiness.com for more information.