I’ve said this so many times: “If you’re not making any money, you don’t really have a business.” Honestly, you’d be surprised at how many women “own businesses” and don’t ever make a dime. A part of the problem is that they don’t know how to generate solid leads and clients. The other reason is that they don’t have a plan. The thing is that small changes can make a huge difference in the bottom line. Here are several of my top savvy and simple ways to increase business profits in the coming year.
Savvy and Simple Ways to Increase Business Profits #1: Streamline Your Marketing
When you’re selling products or services, it’s not good enough to have stellar ideas. You have to get those ideas in front of people who need them. So, how do you do this? There is a myriad of marketing methods out there. The key is to adapt to trends and streamline your strategy to ensure your campaign is relevant to your ideal market.
Consider specifically who you’re trying to attract and use language and imagery that speaks directly to them. Use market research and analytics to track which methods are most effective and focus on those that bring the highest return. If you’re refreshing your social media campaign and you can see from analytics that Facebook and Instagram are generating the most traffic, concentrate on these channels rather than wasting money on others. If you’ve got a focused campaign, you can target more relevant people and cut unnecessary costs.
Savvy and Simple Ways to Increase Business Profits #2: Tweak Your Staffing
When you run a business, it’s important to find the right balance between what you do yourself and what you have others do. Essentially, you don’t want to be so busy that you can’t enjoy the fruits of your labor. For example, making schedules, doing paperwork, and cleaning the office are all things that could be delegated. Some employees might even want the extra responsibility. Furthermore, there are applications like the free employee schedule maker to assist you or your manager in sorting out the details.
If you have a seasonal business, or you tend to work on short-term projects, it’s worth considering options such as temporary contracts and hiring freelancers. This enables you to have the team you need without increasing your labor costs over a prolonged period of time. If you are spending too much on hired help, consider reducing their hours or brainstorming more efficient systems.
Savvy and Simple Ways to Increase Business Profits #3: Minimize Operating Costs
Closing deals and making sales is likely to boost your earnings. That said, there’s no point in working your fingers to the bone if your running costs are eating into every morsel of profit you make. To maximize profits, you have to look at what you spend, as well as what you bring in. There are almost always ways to bring down operating costs. From negotiating better deals with suppliers and investing in new technology to renting equipment instead of buying, your business can whittle down its monthly out-going costs. Whatever industry you’re in, look at your books and think about what is actually necessary. You want to lower your outgoings without cutting into your systems and core standards.
One huge expense many businesses have is the location from which they do business. Consider looking at other options if your rent or mortgage is eating up profits. You may even find that a bigger shift to online sales might be the best thing for your business.
In business, even the smallest, most innocuous changes can make a significant difference. If you can save money while increasing sales, this could have an incredible impact on your profit margins. Consider where you’re spending money and try and identify possible savings. Invest in marketing strategies that are proven to work and make use of market research. Keep an eye on labor costs and be prepared to adapt the structure to cope with fluctuations in demand.