In the busy day-to-day operations of running a small business, actively working to boost profits can take a back seat to other management functions. Crunching numbers to make payroll, clear accounts and stay on top of the line is hard enough!
But ignoring the importance of the bottom line is perilous to a small business. Commit to investing in beefing up the bottom line in order to sustain long-term success.
A flourishing enterprise should be producing profits and cash, and this is even more important during growth stages.
Get creative and encourage profit growth by changing the game. Change is necessary if you expect results, so consider out-of-the-box options. Don’t just rely on cost cuts.
Look at other, smarter ways to improve results into the future. Look at introducing cross-selling strategies. If costs must be reduced, consider outsourcing or automating processes to improve efficiencies.
Make better use of new technology by considering accounting and financial management programs that could benefit your business.
Incorporate a relationship-based sales strategy that keeps customers coming back. Bundle and package goods and services, implement rewards programs and referral benefits to create longevity and promote return business.
Constantly audit your administrative and operational processes in an effort to remain a lean, mean, money-making machine.
Raise the bar when it comes to visibility, marketing and presence. You cannot expect to acquire new clients if you are disappearing into a plethora of generic marketing messages.
Improve cash flow by offering pre-paid terms that come with additional benefits. And always pay your own bills on time to avoid fees and overdue charges, which can really impact on profits.
Consider reducing occupancy costs. There might be opportunities to sublet under-utilized space in your business. Or look at the modern practice of offering employees the chance to work from home.
PROTECT YOUR DATA
Properly protecting your business’ data is of utmost importance – so important, that there is in fact a National Back Up Day! Small business owners can start by developing a backup strategy and educating employees on malware and spyware. Encrypt anything and everything; develop policies for bringing personal devices into the office and restricting who has what access to the network.