Every small business owner is looking for ways to improve business, raise their bottom line and cut out expensive operational costs. The trust is: it’s actually much easier than you think.
Using these three simple methods, you will find that improving your small business than you ever expected: use these ways to turn a good small business into a great one.
♦ 1. Consider the 80/20 rule to your small business
The 80/20 rule of business states that 80% of your business comes from 20% of your customers. Likewise, the 80/20 rule states that 80% of your profit will come from 20% of your products.
With the 80/20 rule in mind, take a look through your customers and find the ones which bring in the most revenue. Also take a look at what customers are the most troublesome.
The customers that take up all your time on the phone, repetitively demand reimbursement and create an overall discomfort are eating at your profits. Instead of spending all your time trying to take care of your bad customers – fire them! Use your time to engage your good customers – the ones that actually provide the most profit for your business.
Likewise, take a look through your products. Find which products are underperforming and which creates the most revenue. Much the same as bad customers, drop the products and services which don’t bring in the revenue vs. the time invested. Focus on your main products, promote them and raise your bottom line.
Trimming the fat at your small business will raise your profits. Stop wasting time on customers and products which hurt your business. Focus on the good and you’ll be rewarded with great revenue and avoiding all the headaches.
♦ 2. Keep existing customers in the fold
Small businesses fall all over themselves trying to bring in more customers. Sure, this is a great way to improve your profits but what often happens is that small businesses forget about their existing customers.
Gaining new customers are expensive when you factor in marketing, time and effort. The first sale to a new customer is almost nil vs. a returning customer that didn’t need to be “bought” into the sales funnel.
• Reach back out to existing customers
• Call them on the phone
• Send them an email
• Highlight them on your website
• Give them free items
Because you’ve already spent money on bringing the customer in and making that first sale; any money which you invest toward keeping the customer within the fold will actually lead to higher profits.
♦ 3. Continually evolve your products, services and marketing
A small business that stops evolving is a small business that is slowly dying. The web is changing every day; when a small business stays within a “comfortable” business practice, they are actually dying off because there are always new businesses coming online.
To stop a small business from dying out, small business owners have to take the risk of change. However, without changing, a small business will surely die – so it comes down to taking the risk up front or failing later on.
Try out new advertising methods, test out social media, promote and hold contests, offer a new product – all of these are great ways to keep ahead of the small business game. Whenever you’re stuck, simply ask your customers how you think your small business could do better. Your customers will help you understand what platforms they use, what new products they want and how you conduct your business better to always stay in the minds and wallets of your customers.
If you’re serious about improving your small business, these three ways can’t be overlooked. Small businesses owners fall over themselves trying to improve their business through extravagant methods but in reality, these three ways are all your small business on the right track to being great.
It only takes a few simple ways to bring in new revenue, stay relevant and get rid of the headaches of operating a small business – you can’t afford not to do these, your business depends on it.