Sunday, July 14, 2024

Simple Strategies: 5 Easy Ways to Make a Small Business More Profitable.

February 6, 2023 by  
Filed under Business, Money, Opinion, Tech/Internet, Weekly Columns

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( Hoping to boost your small business profits? Take a look at these five ideas so that you easily and quickly improve the cash flow of your enterprise: 

1. Pay Attention to Little Leaks That Add Up

Before you can earn more from the business, you must unnecessarily check where your money is going. Small leaks add up, and it could be that your profits are higher than you thought, but your outgoings are too. 

Outdated time and attendance systems offer an easy example. Old tech can drain your time and energy as you verify time cards and the hours each staff member worked. Old manual systems can also lead to time theft, and if employees regularly claim paid time they did not work, the losses can add up quickly. Fingerprint time clocks for small businesses are a great solution to this financial leak, as biometrics eliminate the possibility of employee errors or time theft. 

Apply the same analytical process to other functions in your business, and you should be able to expand your profit margins significantly. 

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2. Consider Cross-Selling

Many businesses boost their profits by cross-selling (suggesting items that naturally complement their main product or services). A great example is a shoe store selling shoe care accessories or a nail technician selling nail and hair vitamins. It’s a case of complementing your existing lines with extras that make you more money while staying true to your brand. 

3. Put Some Energy into Real Relationships

Robots may replace over 800 million workers by 2030. That’s all well and good, and some automated services could increase your small business profits, but there is no replacement for real-person energy when it comes to strengthening relationships with customers, clients, and suppliers. 

Having humans reply to social media messages and chat with suppliers can significantly affect how your brand comes across. In turn, you’ll have a strong foundation from which to negotiate better deals, get an insight into the latest products, and encourage customers to spend more money. The human touch isn’t obsolete, and when it comes to profits and brand growth, automation is not suitable for every aspect of a business. 

4. Keep Customers Onboard for Longer

A great way to increase profits is by signing up customers for extended contracts at a discounted price. It may seem counterproductive, but it locks the customer into a longer connection with you and gives you a more significant upfront income. 

This approach is advantageous if you find customers aren’t sticking around for more than one purchase or service session. Customers are more likely to pay for more of your products or services when a bulk buy gives them a certain amount off and makes the overall service or products cheaper. 

5. Maximize Where You Sell

For small businesses not solely based online (more than a third of American small businesses don’t even have a website), selling in person has to pay for itself and more. Maximize your profits by attending events where you know you’ll make plenty, and ensure all local customers know you will be there on that day. You could offer special discounts for customers to take advantage of on the day. Just make sure you’re handing out cards people can use to contact you for further purchases. 

The tips above should help boost your small business profits, so you can survive the challenging economic climate and thrive now and far into the future. 

Staff Writer; Sherry Jones

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