Are you a small business owner who dreams about dollar signs all night? While this might just seem like wishful thinking that will never come true, there are a few basic strategies on how to increase the profits, beef up your bottom line to increase your return on investment and put more money in your business bank account.
1. Make improvements to how you run your enterprise.
We all know it’s the little things in life that truly matter. So can you apply this to running your own small business? No question about it. Making a few basic adjustments to how your company is managed and makes money can pay big dividends long-term when it comes to increasing your bottom line. Let’s say you are buying Facebook ads, but you don’t seem to be getting the results you want. Perhaps your target customers are not big social media users, so you may need to consider other advertising strategies that are more effective. Maybe you are overwhelmed by your day-to-day work and need to hire an executive assistant, or maybe one of your employees simply isn’t performing well enough. Or, you might simply have a product or service that needs to be spiced up a bit to make it more appealing. Regardless of the circumstances, take a close look at how your small business operates. Then see what you can afford to improve or change in order to drive more sales.
2. Improve your reputation as a small business owner.
If customers trust you, they will be loyal and come back to your business more often than not. So, take some time to beef up your reputation by conveying yourself as someone who is really honest, trustworthy, and helpful. This can be done in a variety of ways. You could simply make updates to your website, social media pages, business cards, and other information about your company and your background. Consider getting a professional head shot for these different platforms. Explore continuing your education or training. When potential customers look at you as someone who is very credible, your chances of increasing sales will go up significantly because people want to work with the best of the best – and business owners they can trust and rely on.
3. Establish/increase relationships with customers on an ongoing basis.
It’s often wise to offer more long-term buying options to those who purchase your products or service in order to establish relationships with them and get them coming back to you. Let’s say you are an IT consultant who works with other businesses. You could offer your consulting as contract packages that last a few weeks or months rather than only meeting with your clients a few times. Maybe you sell arts and crafts items that customers would need to buy several of over the course of time instead of only making a one-time purchase from you. Financing options are also nice if your offerings are more expensive. Finally, make an effort to get to know something about each and every customer you communicate with. This is a great marketing technique that can increase your return customers, which often drive the most sales and profits in a small business.
4. Beef up your skills as a salesperson.
Understanding and implementing appropriate sales strategies is one of the most important ingredients to small business profitability. But entrepreneurs are not always the most adept at selling since they are so good at working in a specific niche. If you are not totally comfortable working in sales, you should definitely spend time learning the tricks of the trade. Consider all of the potential sales strategies that best apply to your products or services. Determine the selling points you believe will generate sales and increase your profits. If you have employees, conduct some basic sales training by imparting your knowledge onto them.
5. Make marketing and networking priorities if they are not already.
Do an evaluation of how you spread the word about your small business. Look at the methods that have been most effective, and put more of your attention and money on those methods. Explore completely different marketing options you’ve never used before. For example, putting up billboards are quite effective for some small businesses, while purchasing Google AdWords are more appropriate for companies with a larger online customer base. As far as networking goes, it’s a must to surround yourself with other business owners in your field when you have the opportunity. All of these techniques can help you beef up your profits.
Article written by Brendon Pack, Partner at 1-800Accountant
Category: Financial Management