How to Increase Profits For Your Small Business
7 Tactics To Increase Profitability Of Your Small Business.
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7 Tactics To Increase Profitability Of Your Small Business.
The quote “When you stop growing you start dying” by William S. Burroughs isn’t extreme to be applied in small businesses. Statistics show that small businesses are struggling a lot to survive. In Canada for example, more than 30% of small businesses die within the first five years according to Key Small Business Statistics — 2021. Staying successful as a small business is then a challenging mission for business owners. When business owners are trying to increase the profitability of their businesses, a lot of them immediately go for drastic changes. But in reality, even a few small changes can do wonders for your business. Here are seven of them you should try.
Craft an Effective Growth Strategy
To start with, having an effective growth strategy is very important for your small business’ success. It helps you develop your strength, resolve your issues, and meet the market’s needs. To create your growth marketing strategy, you’ll need to elucidate your target customers, customer journeys, value proposition, key performance indicators (KPIs), and key growth actions to work on growth all the time. The growth strategy will act as your continual growth roadmap, which, will make you and your staff continually focus on optimizing your funnel and achieving sustainable and measurable growth.
Make sure that your ideal customers (buyer personas) and their journeys are clearly described so that you can understand your customers and their needs, improve conversion rates, and ultimately grow buyers into loyal brand advocates. Define your value proposition and make sure it clearly shows how your products/services are adding better value or solving better a problem for the customers.
With defining customers and products/services, you need also to set what you can achieve by defining and prioritizing your marketing objectives with specific KPIs. For each objective, list the corresponding growth actions. Examples of growth actions include; selling online, expanding into new locations; implementing marketing automation to improve customer acquisition rates, and introducing new products and/or services. when executing these actions, make sure to track the results at short intervals, and accordingly conduct the right corrective actions.
Automatically Track Business Time
Automating time tracking helps you understand how the business spends its unique time without wasting any of it. You’ll have an accurate overview of each activity, from sales proposals to time spent on your client calls. This will help you become more time-efficient as you’ll be aware of how much time is allocated to each client, internal admin, and project.
You can discover inefficient or broken processes and fix each to optimize operations. Also, the report of how you spent business time helps you bill your clients transparently and accurately.
Small business success needs an effective growth strategy that articulates your target customers, customer journeys, value proposition, KPIs, and key improvement actions to drive revenue growth. Be continually focus on developing your competitive advantage, converting more customers, and cutting operating costs to survive otherwise, your business will die.
Make Sure Everybody Knows What They Are Doing
To avoid wasting valuable time, you need to clearly define business rules and processes as well as the responsibilities and accountabilities matrix. Each employee should be aware of the limitations that come with their role as well as what actions they may undertake without clearance.
You can unite various working styles and personalities with clear frameworks. By doing so, you can align business objectives with processes, which is both useful on an office floor and promotes transparency for the stakeholders.
Stay Connected And Visible
Enhancing your online visibility and business reputation are essential for bringing more qualified prospects to your business. Certifications, licenses, and accreditations for your employees or business can distinguish you from the competition. Take business reputation online by using your SEO-optimized website, blog, and social media to attract relevant customers and raise awareness about your brand and the products/services you offer.
Use your strategic alliances to connect with more customers. Find ways for leveraging referral selling, using advertisement sharing with businesses, and using affiliate marketing tools so you can drive new prospects to your website. Eliminate ineffective, stale alliances that are dragging you down.
Make a process for after-sales follow-up. Your goal should be to make sure your existing customers are satisfied and to qualify them for potential sales or upgrade in the future. This can help you boost your sales while pleasing your existing customers.
Raise A Marketing Bar
Small businesses need to embrace digital marketing tactics as a part of their growth strategy. It’s a very cost-effective way to reach, attract, and engage with more targeted customers in the local and global markets. Modern marketing is about relevancy, visibilities, and immediacy. This means creating relevant content and giving the business an instant and more visible presence via online networks such as Website, YouTube, Instagram, Facebook, and LinkedIn.
Based on your prospects, plan a set of actions to attract and engage with them. Use SEO and content marketing tactics to be more visible in search engines and attract people who are searching for services/products you offer. You should also have effective engagement actions to educate and excite your prospects and bring sales. Set up special promotions, sales presentations, and group meetings using webinars. Offer demos, new certification sessions, or tutorials as podcasts or webcasts for immediate download.
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Change Your Sales Procedures
You should be able to reduce expenses while generating more sales. Look into your customer journey, introduce more automation, and reduce non-value-added activities. Moreover, you can increase sales by considering cross-selling; offer new goods or services that complement the current offerings of your business. Encouraging your new customers to try out the business product with special discounts, short-term giveaways, and deals can also increase your profit. To trim your expenses, audit administrative functions. Consider outsourcing routine tasks to save money or eliminate them if they aren’t needed anymore.
Make Everybody A Salesperson
From face-to-face to email to telephone meetings, each employee has an opportunity to spread the message of your company and engage in sales-generating behavior. Everybody should do their part by cutting costs, networking on the web, marketing, and selling.
You can motivate your employees by encouraging self-improvement through roundtables, webinars, lunch meetings, and conferences. Keep in mind that it’s important to reward employees who make the extra effort or seek continuing education to represent your company outside and inside of work.
The Bottom Line
Integrating these simple tactics will help you make the most out of your small businesses and continually raise the bar for more success. Make sure to use them regularly to get the most optimal result.
If you have any questions about crafting your growth marketing strategy or need the help of a professional online marketer, feel free to reach out to us. Our expert marketers will be happy to help! Many digital marketing services for small businesses can be outsourced so that you can focus on your business core. We specialize in helping small- to large-sized businesses develop their growth strategy and re-engineer their business practices to increase quality leads, cut costs, improve marketing ROI, and improve their bottom lines.
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