Tips for small businesses to crank up their profit engine
If you own a small business, you already know that profits can be elusive. From surprise expenses to sales that fluctuate with the seasons, it’s sometimes difficult to turn your personal vision into cash. How, then, do successful small business owners make it happen? Here are five of the top tips to help spot ways to sustainably reap paydays from your business.
Lower Your Overhead, All Of It
One of the best ways to increase your bottom line is to scrutinize your costs of doing business. The first step is to establish a business budget if you haven’t already. Know every penny that comes in and out of your business intimately. Negotiate with your vendors. Find deals on supplies. Optimize your workspace. Free up cashflow.
Increase Sales By Rethinking Product And Service Units
Once your expenses are tamed, look for ways to increase your sales per customer or transaction. Increase the size of your product, or retool and repackage your services. Upsell all the time. Add suggested additional items to your online sales portal at checkout. Ask your customers if they’d like to set up scheduled restocks of their regular purchases.
Split Marketing Costs With Other Small Businesses
As a small business, marketing can be costly, and the benefits may be hard to quantify. Team up with other small businesses in the same situation. Hold a sidewalk sale or chip in together for an online collaborative sales blitz with non-competitors who sell complementary items. If you own a small boutique, invite the local coffee roaster to set up a stall on weekends.
Prioritize Sales And Customer Experience
A collaborative sale increases your customers’ experiences, which translate into additional sales. Make optimal customer experience and sales goals for all employees. No matter what your small business may be, infuse it with a sales-focused culture and your customers will be treated like gold, and your employees will understand how the business engine runs.
Turn Customers Into Salespeople Too
The best source of new sales is happy customers. Ask your customers to rate your business online. Assume that every interaction, every transaction and every word that is exchanged between your business and its customers will be scrutinized online. Aim only for excellence and control your online image.
By controlling costs and leveraging employees and customers in the sales and marketing process, you can identify trails of cash and increase your small business profit.