Your small business is a living, breathing entity. Many mistake the desire to improve the bottom line to be based on pure greed. This is not true. Improving profits will allow your business to survive during lean times. It also ensures your ability to provide a living to your employees. Here are some ways you can improve the profitability of your business. Some cost a lot of money to implement, many are free.
One of the best ways to improve the sales of your company is to improve your marketing. There are hundreds of ways to do this. You could advertise in a local newspaper or television show. You can redesign your brochures. Marketing does not have to be expensive as there are many inexpensive advertising methods. You could have your employees hand out flyers. If you advertise on prime time television however, you’re going to pay an arm and a leg. While the cost to acquire a new customer might be pricey, your efforts will pay off in the end if you can get them to become repeat customers. So make sure your level of service is excellent before undertaking any major marketing push. SEO Tools also help a lot.
Use cheaper suppliers
When was the last time you checked the pricing on your supplies? Cutting the cost of supplies is a fairly easy and straightforward way to improve profit. Just be careful not to sacrifice quality. Also, know how to negotiate with them.
Markup you product more
If you haven’t increased the prices of your goods over the past few years, it might be worth it to reevaluate your pricing scheme. Don’t worry! Inflation happens normally and customers expect prices to rise over time.
Introduce more expensive goods
You might want to reconsider the goods or services you sell. Introducing a high end product might make sense for the bottom line. Although not all your customers are going to buy the item with all the bells and whistles, it’s good to have the item available for people who want it.
If you have a service business, perhaps you could include more periphery services in you standard offering and then raise prices. Or start offering a totally inclusive package.
Using the same line of thinking, it might make sense to eliminate your lower priced options. Customers who are very price conscious can always go elsewhere.
Improve sales tactics
Entire tomes have been written about improving sales departments. Make sure you are using all the tactics available to you. Maybe you could cross sell product more? Would your sales employees be motivated by a competition? Is there enough training? Are your sales employees being compensated fairly?
Lower labor costs
Although this might not be popular, sometimes it’s necessary to cut labor costs. Maybe you need to cut hours. Is it really worth it to be open late every night? Or maybe the new manager is not pulling his weight.
A website is the digital representation for your business. Having a snazzy one can definitely improve sales. What’s great is that there are very little ongoing costs and that they last several years. “Many businesses experience a large boost in ROI in their first year” says Phil Singleton of Kansas City Web Design.
Morale is very important for business. You might need to speak to your employee with the bad attitude. Maybe you should sponsor a trivia night or have a party. Make sure to let your top performers know that you’re pleased with their performance. There are many ideas.
If you have a retail location, it might be worth it to explore a redesign. Styles change. If your interior design is a decade old, your décor might be dated. Spending a couple thousand on doing a redesign would be great for your brand.
Productivity is one of the most important parts of business. You can improve it with training or buy new technology. Unnecessary tasks can be shelved. Doing so will allow you to get by on lower labor costs.
Consult your employees for ideas
Employees are frequently one of the best sources of new ideas. After all, you only have one pair of eyes. Empower your workers to make improvements in the workplace.
There are many ways you can improve the profitability of your company. It does not need to be expensive.