Change Operating Procedures
You need to increase sales and reduce expenses. To boost your sales, consider cross-promotion – offering new services or goods that complement your current offerings. For example, a therapeutic practitioner could also sell vitamins. Another operational change that can increase profits is incentivizing new customers to try your product through special offers or discounts or short-term gifts.
Note: Try transitioning to a relationship-based sales model that encourages customers to return to you by offering monthly or yearly service plans, or a package of visits at a discounted rate – like a series of 10 gym visits.
On the other hand, to reduce expenses, consider reviewing your administrative functions. Are there routine tasks you can delegate to someone else or eliminate to save money? Would it be more cost-efficient to hire a part-time assistant rather than a full-time employee to handle some of these tasks?
Stay Visible and Connected
Accreditations, licenses, and certifications can set your company or your individual employees apart from your competitors. Build your online reputation using social media, your website, and a blog to engage with customers and establish strategic alliances.
Utilize ad sharing with complementary businesses, find ways to leverage referral selling, and take advantage of affiliate marketing tools to drive new customers to your site. Discontinue old and ineffective alliances that may be negatively impacting your business.
Maximize Cash Flow
One of the best ways to ensure steady cash flow is to offer upfront fees to clients or ongoing payment plans. For instance, instead of a one-time consultation charging $125 per hour for a full day, adjust your offer to provide them with a discounted plan for 20 hours at $100 per hour. Although your hourly rate would be lower in this case, you will collect a larger total amount, and you will secure your client in a long-term agreement.
At first, this may not seem profitable, but it establishes a relationship and keeps the door open for additional work. Maintenance contracts for service-based businesses are another way to create a new revenue stream.
Simplify Administrative Costs
How efficient are your employees? How many customers do you gain? How much is owed to you in accounts receivable? Such questions must be answered promptly, and to do this, you need to develop your business.
Create a system that allows employees to access data and add to it, updating all information and syncing it. Make sure to allocate administrative time in the background for legal fees, hourly wages, or ongoing fees. Automated development of your company allows for smooth operation and will help complete more administrative work by a smaller team.
Elevate Marketing
Networking used to mean cocktails and handshakes. Now, it’s all about immediacy. Give your company an immediate presence through social networks including Facebook, Twitter, YouTube, Instagram, and LinkedIn.
Set up group meetings, sales pitches, and special promotional offers using webinars. Provide educational programs or demonstrations or new training sessions as instant downloads. Measure all your marketing efforts to determine which are cost-effective. You can do this using a Customer Relationship Management (CRM) software linked to your accounts receivable system.
Make Everyone a Seller
Through phone calls, email, and face-to-face meetings, every employee has the opportunity to share your company’s message and engage in behaviors that generate sales. Everyone should contribute by helping cut costs, and selling, networking online, marketing, and more.
If you can make your employees invested and excited to sell your message by encouraging self-development through group sessions, conferences, lunch meetings, and webinars, you’ll be on the right track to creating an organization built around increasing profits.
Remember
He pays bonuses to reward employees who seek continuous education or who put in extra effort to represent the company both inside and outside of work.
Source: https://www.thebalancemoney.com/steps-to-increase-small-business-profits-1200720
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