Five smart ways to expand small business profits
As a small business owner, it is imperative that you do everything within your power to grow your business and increase your profits accordingly. Many small businesses struggle to achieve this because their owners or founders simply don’t know how.
In this post, you’ll learn the basics of growing your business profits so that you can generate more profits and expand the business beyond its current state.
Identify and scale profit channels
Does your business currently make any profits? If yes, where’s the profit coming from specifically? Like most things in life, your business makes 80 percent of its profits from 20 percent of your products or services.
Therefore, you need to identify where the bulk of those profits are coming from and double down on them. Channel more resources to those parts of your business do everything you can to scale that.
For instance, if you own a suite of apps and just two of those apps make more money than the rest combined, you need to spend more time and money pushing those apps and max out their profit potential.
Set up a sales funnel
Are you currently promoting and marketing your business? If you are, how well are you doing? Are you generating good returns from your promotions or is the outcome underwhelming? If you’re struggling with your marketing, it’s largely because you’re not tracking every aspect of your sales channels.
So, we’ll correct that by setting up a sales funnel. This, in simple terms, is a way to track every action that a prospect takes. You’ll need to set up a landing page, offer your visitors a solid incentive, and get them to give you their contacts.
Then, you’ll lead them on a “journey” that will ultimately get them to buy more products or take on more of your services. A properly optimized sales funnel can be a game-changer for your business if you do it correctly.
Hire the right talent
Business profits are largely tied to marketing, sales, fulfillment, and customer service. The better you are at this, the more likely your chances of growing your bottom line. But to do this successfully, you’ll need to have the right people on your team. So, take the time to hire the best people for the job.
Offer them great incentives for smashing old records and setting new ones. For instance, get more salespeople to contact and talk to prospects about your products and services. Pay them on a commission basis –and offer a base pay too.
Get the right marketing professionals to drum up the leads that the salesperson(s) will close. Ensure that your fulfillment team is super-effective at helping new clients use and get the full benefits of your products. And have a solid customer support system that will answer all inquiries, questions, and keep the customer happy.
Practice lean business operations
This basically means getting rid of everything that your business doesn’t need right now. From unnecessary software subscriptions to equipment that aren’t in use. Only buy and use what is strictly necessary. Use what you’ve currently got to the fullest.
For example, most business owners just use their iPhones for receiving calls, texting, and the occasional FaceTime sessions. Yet, your iPhone has a lot more robust features. For instance, if you find an important video, you can screen record it –here’s how to screen record on iPhone– and send it to them while you’re on the move.
While this is a pretty simple explanation, the goal is for you to understand that you can grow your business using what you currently have if you utilize them fully
Cut back on unnecessary business expenditures
Every business has some unnecessary equipment, software, or service that they paid for but aren’t utilizing fully. In fact, it’s not unusual for business owners to only remember an equipment or tool when they want to pay the invoice.
Here’s the thing: when tools and equipment aren’t being used, they just tie up your money –money that could go to other important parts of your business. So, do a thorough audit of your monthly expenses and see if there are any unnecessary costs there.
And once you identify those costs, cut them and divert the funds to critical parts of your business like marketing and sales. You’ll get more bang for your bucks that way and increase your profits in the process.
If you implement these tips, you’ll find that your business will enjoy increased revenue and profits in this new year. So, use and deploy these tips to your benefit.
