Strategies to Accelerate Small Business Profitability
Small businesses are the backbone of many communities and downright inspirational when they come through in the face of daunting odds. However, sometimes, you may find yourself in a profitability pickle. While it may be a troubling place to be in, it is a natural part of the learning curve with many reasonable solutions.
Hiking up prices on your goods and services may seem like a good idea, but it can work against you in the long run. So try these strategies:
Bring Your A-Game to Marketing
Gone are the days when you could spend money on egregiously large billboards or throw fancy parties to spread the word about your business. Today’s marketing world is all about two things: hype and relevance.
We live in the age of viral videos and trends that disappear soon after they have arrived, and you need to know this paradigm inside out. Small businesses can create an impact by tapping into the zeitgeist and actively participating in trendsetting cultural conversations. You will ensure success if you maintain a robust online presence with responsive web design and engage your customers in digital spaces native to them.
The best part of inhabiting online spaces is that you always have access to resources to guide you if you get stuck. For instance, take the DigitalSupermarket website, which curates various tools to help you create an online presence or optimize your one. You can use these tools to enhance your sales funnel and ensure your customers know what your brand is all about.
Ensure That Your Brand Is Seen and Heard
Pairing your marketing efforts with a sound public relations policy is a great way to bring positive attention to your brand. Make sure you attend conferences, speak at a wide variety of media and in-person events, and prominently showcase any awards or achievements your brand has earned. Being perceived as an expert in your niche, for instance, increases the trust people place in you and piques their interest in your brand.
Don’t forget to promote your employees who make an impact either by exceeding goals, personal achievements, or engagement with their communities. You will motivate them by making them feel seen and position your business to learn how to make a positive impact. Often, your employees will be able to direct you to CSR opportunities that earn you praise while increasing your brand’s visibility.
Once you have more eyes on you, make sure that you capitalize on it. You can establish referral programs, new customer discounts, and other ways to incentivize people to purchase your goods or services. Utilizing affiliate marketers and cross-listing your products and services with related brands can also help them be more widely seen and asked for.
Keep Costs Low
As a small business owner, you may often find yourself at the helm of a crew in rough waters, so it makes sense that you run as lean of an operation as possible. Losing sight of the forest for the trees doesn’t serve you well.
It does take money to make money, but make sure you are not overdoing it. Instead of just conducting the minimum number of audits required by law, use smaller, more informal ones at frequent intervals to stay on top of your funding habits.
Many business owners fall into the trap of holding on to ideas well past their usefulness. You must understand that this fallacy of sunken costs is nothing but detrimental to your operations. Just because you have expended time and effort to try and bring an idea to fruition doesn’t mean you need to see it through to the end at any cost. Some ideas simply may not make money, despite your sincerest efforts. You need to step back and cut your losses if it comes to that.
Diversify Your Portfolio
As you sift through your personal and professional networks, you will find more services to offer than you had initially imagined. While you should generally follow your business plan to be successful, being open to life and allowing for spontaneity can often bring unexpected success.
Having conversations with your customers can also reveal new directions to branch out. Just make sure that you assess the market before you do so. It is good to have a mix of high and low-margin products and services spread out over the short and long term. This diversity will ensure you don’t put all your eggs in one basket and quickly upscale or downgrade any of these branches in response to the market.
Supercharge Your Sales
Too many organizations don’t take the need for sales seriously enough and consider it the domain of one department only. Nothing can be farther from the truth. All organizations, including small businesses, benefit immensely from sharing this responsibility equally.
Sales is a different game now than it used to be even a decade ago. It is not just about cold calls, harvesting leads, and delivering fiery pitches to entice people into impulse purchases. People look for credibility and relatability – they want to know that your brand does not make hollow promises and behaves in a way that aligns with their values.
Word-of-mouth sales are the new norm. Having all your employees on board as potential salespeople can introduce your brand into spaces it could never reach through outbound marketing alone. Casual conversations are just as likely, if not more, to bring in loyal customers who get to know you through a personal connection.
Running a small business is an exciting endeavor that requires all your ingenuity and planning skills. As long as you invest in the right opportunities and build long-lasting relationships, you will stay profitable. Don’t forget to ensure that your brand is perceived in the best possible light to turn your passion into a stable livelihood for yourself and many others.
So keep an eye on creeping costs, ensure that everyone on your team spots opportunities, opens doors for your brand, and maximizes your brand’s potential.