Did your small business make a profit last year? If it did, was it an increase on the year before?
The amount of profit your business makes is a sign of its success. If your answers to the previous questions are in the negative, you might be thinking about calling it a day.
Don’t be too hasty because there are tactics worth trying. Start with the following five and then reassess your situation in a few months.
1. Focus on Your Existing Customers
As a small business owner, you’re always going to be on the lookout for new customers. Don’t however, forget about your existing customers because they can be a very lucrative source of income.
You will need to look after them and provide the best customer experience possible. Failing to do this means they’ll end up spending their money elsewhere. It’s also likely word will spread of your poor customer service, and you’ll have to work even harder.
2. Look for Ways to Cut Costs
Running a small business usually means your budget is limited which means you’ve got to look after your capital and be smart when it comes to spending money. There is a range of different ways you can cut costs, for example, becoming a paperless office.
Looking for suppliers that offer discounts or guaranteed low prices is also a sensible move to make.
Wherever you live in the world, there will be companies offering low prices; you just need to seek them out. Business owners in the UK, for example, benefit from low prices when it comes to buying printer cartridges from companies such as The Cartridge People.
3. Ramp Up Your Marketing Efforts
Do you have a marketing strategy or is promoting your business something you can’t seem to find time for? An increasing number of people research online before making a purchase, so it makes sense for your marketing strategy to include an engaging website.
When you’ve got an online presence, you can look at ways to convert potential visitors.
Writing a blog, providing informative and engaging content, publishing videos and building your social media presence are all ways you can make marketing work for you.
4. Charge What You’re Worth
Pricing is something many entrepreneurs are uncomfortable with. The end result is that they end up charging less than they’re worth. It’s always been tempting to look at what your competition is charging and price your product accordingly.
There’s also the temptation of keeping your prices as low as possible.
The price you charge is a reflection of what you think your product or service is worth and how much value it gives to your audience. If you want to run a profitable business, you’re better off focusing on creating a high-quality product you can charge premium prices for.
5. Ask for Referrals
A very effective way to grow your company is through referrals from happy customers. When you contact customers, make sure you let them know that you value their opinion and are serious about providing excellent customer service.
Potential customers are going to be swayed by positive feedback, and if you encourage customers to keep in touch, you get an opportunity to resolve any issues before they reflect negatively on your business.