Small businesses can struggle with profitability for a number of different reasons. They keep prices too low. They focus more on big picture ideas than real consumers. They have way, way too many expenses. The list goes on and on.
But even if the business doesn’t make a lot of money early on, the goal should eventually be to sustain operations and earn a profit.
In order to accomplish this, business owners need to follow a few tips.
Make Everyone a Salesperson
From telephone to email to face-to-face meetings, every employee has the opportunity to spread the company’s message and engage in potential sales-generating behavior. Everyone needs to pitch in to help by cutting costs, selling, networking on the web, marketing, and more.
Develop Strategic Partnerships
Sometimes, developing new revenue streams doesn’t require new products or services. It just requires a new approach to connecting the products or services to customers. Partner with like-minded brands or complementary service providers to open up referrals.
Seize Potential Opportunities
Small businesses need to diversify their product offering to ensure they aren’t putting all their eggs in one basket.
Offer Discounts and Rebates
When discounts are properly marketed, they create an incentive for consumers to start buying. The discounts can be on limited products such as quantity discounts offered on two or more products, seasonal discounts, or discounts on all products in a store-wide sale.
Focus on Repeat Customers
Instead of spending resources trying to gain new customers, small businesses should focus on upselling or cross-selling current customers.
Take advantage of e-commerce
Ecommerce is growing 23 percent each year, with 51 percent of Americans preferring to shop online. However, 46 percent of small businesses still don’t have a website. If anyone falls into this category, they are leaving massive amounts of revenue on the table.
Invest in digital marketing
Grow pool of prospective customers to include the whole world with smart, low-cost digital marketing. That includes investing in a web presence, search engine optimization, email newsletters, and more.
Focus on cash flow
Small-business financing is commonplace. That Fed report found that 43% of small businesses applied for new financing in 2018. Maintaining a healthy cash flow is one way to minimize your use of credit.