Now that the year is in full swing, it's time to start thinking about ways to make your business more profitable. There are a lot of things you can do in the next few months to help increase your bottom line, and here are ten of the most important ones. So if you are looking for some guidance on where to focus your efforts, read on.
1. Keep your costs low:
Be sure to review how much of your revenue is being eaten up by business costs and expenses . Was it higher than you expected? Are any of these expenses unnecessary? If there are some things such as subcriptions to business services you never use, you can simply stop or pause them and keep a bit more money in your pocket.
2. Utilise social media:
It is important to stay active within your small business, especially on free social media platforms. If you spend a few minutes each day on Facebook or Instagram, not only will this increase people's awareness of your brand, it could also help with your organic reach for little or no cost to your business. The more people you can get to see your posts organically, the better your small business will do.
3. Offer value:
One thing that small businesses seldom fully appreciate, is just how much value they bring to their customers. If you are able to provide efficient assistance and resources for customers (and even employees) in some manner or form, more people will want to work with you. Just offering good products isn't always enough; it helps to offer great value and experiences too.
4. Be willing to adapt:
Since small businesses are typically run by entrepreneurs, flexibility is key. You may have an idea about what strategies should be applied in order to make your small business more profitable, but it is possible that your customers have other ideas of what they would like to see next. Open yourself up to their thoughts and opinions, they may very well reveal some strategies you had not originally considered. That said, always go with what has the best chance of working in the real world.
5. Keep small business goals small:
If your small business seems to be doing well, why not shoot for the stars? While it might be tempting to set extremely high business goals , it can actually backfire if you start getting too ambitious, too soon. Instead of setting up lofty new projects at the onset, keep things small until you have proven that there is sustainable demand for your products or services.
6. Take innovative steps:
While it is important to be patient when attempting to make your business more profitable, it's also a good idea to take small but measurable steps toward innovative ideas. It can be easy to get stuck in a rut, where you are doing the same types of tasks each day. By changing up some aspects of how you work, you might find yourself with a small business that is better placed growth in ever changing markets.
7. Stay productive throughout the year:
In most small businesses, there are often busy seasons, as well as times when productivity slows down . In order to make sure these fluctuations don't keep you from being as profitable as possible, try taking on extra small business clients or projects during the slow periods so that you can keep generating new sources of revenue even when things are slow. You will be surprised at how much extra income you can generate in just a few months.
8. Plan for taxes:
While small businesses can typically benefit from some tax deductions each year, you also need to make sure that you are adequately prepared to handle taxes . By planning ahead and thinking about your book keeping, accounting system and potential tax breaks, you will ensure that there is no problem with paying your business taxes on time. This also means that you will have planned for the potential cost of an accountant if needed and made sure you have the cashflow to settle any tax bill. Failure to pay your taxes correctly can result in fines, that are tough for a the budget of small business to handle.
9. Avoid wasting money:
It might seem like common sense, but too many small businesses allow themselves to waste money by spending more than they need to on business supplies . Just because you are small does not preclude you from getting the best prices on wholesale supplies, office space and technology. By taking these small steps, your business will be less likely to spend too much money on overprices supplies at retail prices or items that you do not need.
10. Consider outsourcing:
Outsourcing is one of the most popular ways for small businesses to work more efficiently, however, it is not necessarily right for every small business owner . If your business works with enough clients or has a lot of projects that are time-consuming or tedious, then hiring an assistant or outside contractor can increase your productivity. It can help cut down on business expenses over time, while simultaneously increasing both productivity and profits.
In conclusion, small businesses are often at the mercy of their finances, but that does not mean entrepreneurs should not actively take steps to set themselves up for success. By making sure your business focuses on profitability in the next few months, you can give yourself a fighting chance for success this year and years to come.
To talk to someone regarding your business ideas, strategies or outsourcing, feel free to book a free business consultation meeting. Sometimes it's just good to talk.