Starting your own business is rewarding, but it most certainly comes at a cost. Your nerve will be tested during off-peak seasons or times where business is slow. When you are facing these periods, what you need to remember is that markets are ever changing and all companies go through challenging times; you’re just going to need to take some strategic action to avoid it becoming a long term issue. Here are five simple measures that any small business can take to boost profits:
1. Cut Down On Rent and Admin Costs
You really do not need to spend a fortune on leasing or owning a commercial office space in this share-economy! Instead, rent a serviced office in a prime city location. It will be ready when you need it, for as long as you need it as serviced offices come fully equipped and furnished to accommodate small businesses. Not only will this solution simplify your accommodation and utilities management but also your administration overheads. Serviced office solutions allow you to take advantage of secretarial services such as professional telephone answering, boardroom hire, mail services and more.
2. Renegotiate Your Suppliers and Ongoing Expenses
It is vital that you remain rational when it comes to any decisions involving expenditures. Set some time aside, perhaps quarterly, or annually, to review your expenses and see if you can obtain your supplies or utilities in a cheaper, more convenient manner.
Next, share your findings with your providers, they may be able to present you with a counteroffer. If not, you can be assured that you are getting the best deal. Developing strong relationships with your suppliers is a positive, but these relations ultimately should meet their transactional purpose and be beneficial to your business and your own customers first.
3. Increase Prices
If you opt to increase your the prices of your product or services, make sure to do so in a calculated manner. You don’t want to shock or lose your customers’ loyalty. Conduct some market research and base your rate increase decisions on a price that is reasonable to the consumer but still reflective of the value or quality that you offer. Increasing your rates will do the trick and increase your profits only if consumers continue to purchase what you’re selling.
4. Reduce Your Marketing Expenses – Get Creative
Thanks to mobile technology and social media, marketing has never been more affordable. If your marketing costs don’t seem justifiable compared to the resulting sales, don’t feel guilty about pulling the plug on your providers. They will definitely try to spin a narrative to keep your business longer, so be firm and put your needs first. Take some time to focus solely on the marketing or social media platforms that have resonated best with your clients so far. If you don’t have the time or to do so yourself, you could hire a social media manager or digital marketing expert with a competitive rate from a freelancer gig site.
5. Provide Additional Payment Options
A very simple but frequently overlooked way to improve your bottom line and attract different markets is offering alternative payment options. Don’t wait for hard times to hit before doing this. Explore additional payment options whenever you review your finances and operations. In addition to cash and/or EFTPOS systems, look at e-commerce, digital payments like Paypal or BPAY or, if you can wrap your head around it (and believe your customers have) you could even offer payment via blockchain.
By closely following these steps and remaining calm and rational when making business-related choices, you’ll be able to boost your financial performance and come out of any challenge stronger and evolved.