Starting a business is a simple process. All you need is a little funding, a business plan, and determination.
But growing that business so it can continue to make profits? That’s a bit more complicated.
Profits mean long-term success. And the sooner you figure out how to grow your company, the better off you’ll be.
Here are a few simple tips to help.
But without a solid marketing strategy in place, reaching new customers can be almost impossible.
Invest money in your marketing efforts and follow the trends. Get active on social media. Create an eye-catching logo and website, and make use of online ads. Almost 50 percent of shoppers research companies online before working with them.
If you’re not working to grow your online presence, you’re not reaching the people you should be. The fewer new customers you bring in, the fewer new sales you’ll make.
Use this to your advantage. Make sales training a part of every new hire's onboarding process. The more people you have prepared to make a sale when they see the opportunity, the more sales you’ll make.
And those non-sales people can boost customer satisfaction. Customers will feel that the employee is making a recommendation because it’s in their best interest. It’s not about closing a deal.
Start working to improve customer retention. If customers have complaints, listen to them. Thank them for supporting your business by offering loyalty coupons or sales.
Showing your appreciation, even a little bit can make a huge difference in getting repeat customers to continue coming back.
But leaving them too low can be just as bad.
Underpriced products and services can make your company appear low-quality. Instead, look at your competition and see what they’re charging customers.
Keep your prices close to that range.
Increase your prices between three and five percent. This way, you’ll still see an increase in profits. But the price change won’t be enough to drive customers away.
If that feels too high, look at your expenses and operating costs. If they’ve gone up, your prices need to reflect that increase.
Get rid of those old files and go digital. Scan old documents and store them on a hard drive or cloud-based server. This will free up office space and make the files easier to access.
Anytime you need to refer to a document, you can search for the file on the computer. No more time wasted flipping through filing cabinets!
And every business, no matter how established, can always improve in some way.
If everything seems to be going well, but your growth or profits aren’t where you’d like them to be, get help. Work with an experienced business consultant.
Consultants understand how to help businesses grow. They’ll look at the way you’re operating and find those little problems that are driving your profits down. Once you know the problems, they’ll help you find ways to overcome them.
Read more here to see how a consulting service can help you grow your business.
Keep track of items as they come in and when they’re sold. Make note of all items that get damaged or go out-of-date each week.
At the end of a month, you’ll have a better idea of what’s selling quickly and what’s sitting around. You’ll also see which items you need to cut back on or get rid of altogether.
When you streamline your inventory, you keep the items your customers love on hand. But you also get rid of items that are taking up space without making money. This lets you focus on boosting sales of items that already move and frees up space for new products.
Happy employees mean happy customers and higher levels of productivity throughout the day. The more work that gets done without increasing labor, the more profits you’ll make each day.
Show your team that you appreciate what they’re doing. If you see someone going above and beyond, thank them and reward them. Even acknowledging them in a company meeting can make a huge difference.
Make accounting a priority and set aside time each week to go over the books. If you notice any errors or see things that don’t add up, investigate them immediately. The sooner you catch those mistakes, the better off your business will be.
Best of all, you’ll have a real-time picture of how the business is doing each week. If profits are on the rise, use this information to duplicate the process. If they’re slumping, work to improve them the next week.
If you don’t have time to do it on your own, consider working with an accountant. You’ll still get the information you need, but you’ll have more time to do what you do best: run your business.
Remember, growing your business takes time. And there will always be slumps, but it’s up to you to overcome them. For more helpful tips on growing your business, check out our other articles.
But growing that business so it can continue to make profits? That’s a bit more complicated.
Profits mean long-term success. And the sooner you figure out how to grow your company, the better off you’ll be.
1. Focus on Marketing
Marketing your company is one of the most important things you can do to increase profits. The more people are aware of your brand, the more likely they are to use your services and buy your products.But without a solid marketing strategy in place, reaching new customers can be almost impossible.
Invest money in your marketing efforts and follow the trends. Get active on social media. Create an eye-catching logo and website, and make use of online ads. Almost 50 percent of shoppers research companies online before working with them.
If you’re not working to grow your online presence, you’re not reaching the people you should be. The fewer new customers you bring in, the fewer new sales you’ll make.
2. Start Training for Sales
Every person in the company has the potential to be a salesperson. This is true regardless of the role you hired them for.Use this to your advantage. Make sales training a part of every new hire's onboarding process. The more people you have prepared to make a sale when they see the opportunity, the more sales you’ll make.
And those non-sales people can boost customer satisfaction. Customers will feel that the employee is making a recommendation because it’s in their best interest. It’s not about closing a deal.
3. Keep Existing Customers
Repeat customers will spend about 67 percent more than new customers at your business. And while you could turn new customers into repeat customers, focusing on them alone can eat away at your profits.Start working to improve customer retention. If customers have complaints, listen to them. Thank them for supporting your business by offering loyalty coupons or sales.
Showing your appreciation, even a little bit can make a huge difference in getting repeat customers to continue coming back.
4. Avoid Undercharging for Products and Services
Your pricing has a direct impact on your profits. When they’re too high, customers will go elsewhere.But leaving them too low can be just as bad.
Underpriced products and services can make your company appear low-quality. Instead, look at your competition and see what they’re charging customers.
Keep your prices close to that range.
5. Increase Prices…the Right Way
It goes without saying that increasing prices can make your company more profitable. But there’s a trick to it. You have to raise prices the right way.Increase your prices between three and five percent. This way, you’ll still see an increase in profits. But the price change won’t be enough to drive customers away.
If that feels too high, look at your expenses and operating costs. If they’ve gone up, your prices need to reflect that increase.
6. Go Digital
Paper, ink, and toner all cost money. Worse, paper files take up a lot of space.Get rid of those old files and go digital. Scan old documents and store them on a hard drive or cloud-based server. This will free up office space and make the files easier to access.
Anytime you need to refer to a document, you can search for the file on the computer. No more time wasted flipping through filing cabinets!
7. Work with a Consultant
As a small business owner, it’s hard to separate yourself from the company. This often makes it hard for you to spot areas where you can improve.And every business, no matter how established, can always improve in some way.
If everything seems to be going well, but your growth or profits aren’t where you’d like them to be, get help. Work with an experienced business consultant.
Consultants understand how to help businesses grow. They’ll look at the way you’re operating and find those little problems that are driving your profits down. Once you know the problems, they’ll help you find ways to overcome them.
Read more here to see how a consulting service can help you grow your business.
8. Maximize Your Inventory
Believe it or not, your inventory can lose you money. The key to making profits is to maximize your inventory.Keep track of items as they come in and when they’re sold. Make note of all items that get damaged or go out-of-date each week.
At the end of a month, you’ll have a better idea of what’s selling quickly and what’s sitting around. You’ll also see which items you need to cut back on or get rid of altogether.
When you streamline your inventory, you keep the items your customers love on hand. But you also get rid of items that are taking up space without making money. This lets you focus on boosting sales of items that already move and frees up space for new products.
9. Remember Your Team
Your employees set the tone for your customers’ experiences every time they walk in the store. When employees feel appreciated, they’re happier in their jobs. This helps them offer better customer service and improves morale throughout the company.Happy employees mean happy customers and higher levels of productivity throughout the day. The more work that gets done without increasing labor, the more profits you’ll make each day.
Show your team that you appreciate what they’re doing. If you see someone going above and beyond, thank them and reward them. Even acknowledging them in a company meeting can make a huge difference.
10. Make Accounting a Priority
Accounting and bookkeeping may not be at the top of your list of fun tasks at work. But they’re vital in helping you stay profitable.Make accounting a priority and set aside time each week to go over the books. If you notice any errors or see things that don’t add up, investigate them immediately. The sooner you catch those mistakes, the better off your business will be.
Best of all, you’ll have a real-time picture of how the business is doing each week. If profits are on the rise, use this information to duplicate the process. If they’re slumping, work to improve them the next week.
If you don’t have time to do it on your own, consider working with an accountant. You’ll still get the information you need, but you’ll have more time to do what you do best: run your business.
Make Profits with Your Business
Every business can make profits. But you need to be willing to try new things every once in a while. If something isn’t working, take a step back and implement the above tips.Remember, growing your business takes time. And there will always be slumps, but it’s up to you to overcome them. For more helpful tips on growing your business, check out our other articles.
Ashutosh Jha
Ashutosh Jha is a professional blogger, Blog and IT Consultant. He writes about Blogging, SEO, Making Money, Internet Marketing and Web Design.
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