So you’ve started your small business and you’ve done everything you were supposed to do. You’re building your brand, you’ve designed an awesome logo, and you’ve perfected your product or service. You’ve started to see some cash roll in, but it’s difficult to know where to invest that money in order to make your business a real success story.
Every big business knows the keys to success are effective, sales driven strategies. For new and small businesses however, it can be difficult to know which strategies you should invest in and why. We’ve compiled our top 7 most profitable steps for growing small businesses.
Create sales driven strategies
With many new businesses starting out, there’s little time to sit down to track strategies. However you have to so you can gauge what is working and what is not! Now you want to grow your profits, its essential that you take the time to strategise where you’re going to invest your money and how.
Maximising profits comes down to optimizing your revenue while cutting down on costs. Eliminate needless waste and evaluate your business costs at all times – even when the business is growing at a fast pace. Put sales driven business strategies in place and analyse them to see what works for you and what doesn’t.
Maximise your marketing methods
Consider your most profitable revenues – which methods bring the most money in, and why? Marketing should always be one of your top investments if you want to make real profits – no ones going to engage with your business if they have no idea you exist.
Look at your marketing efforts and see what has worked and what hasn’t. Cut down on your marketing waste and only invest in those methods that have worked for you thus far. Also consider what areas you should expand in and how – is there a new rising form of social media that’s popped up? Does your target market spend a lot of time on it? If so, beat the herd and consider how you can use it to market your business.
Build your audience and monetize it
To turn your business into a true success story, you need to build a sizeable audience then systemize and monetize it effectively. As your business grows, it’s important that you focus on building your audience in terms of loyal customers, email newsletter subscribers, and social media followers. The bigger audience you have, the more potential customers you have access to.
Calculate your pricing strategy
Maximising your profits comes down to how effective your pricing strategy is. Prices that are too low aren’t going to bring in enough profits; whereas prices that are too high are going to see you losing customers. The key is a healthy balance between affordable prices customers won’t want to say no to, and prices that are still going to bring in solid profit margins.
Don’t undersell in order to create high volume sales – especially not at the beginning of your business. If you begin with low prices, it’s going to be extremely difficult to raise your prices later on to increase profits. Raised prices will see you losing much of your loyal customer base – customers who have come to expect low prices. You could see sales drop so much that you’re back at stage one with little customers and little sales.
Remember when you compete on price, you’ll always be competing on price!
Make what you sell reflect your price
By pricing your product or service right, you can attract customers who will pay the right price for high quality and excellent service. Make sure your product or service is high quality enough to reflect your price. If the customer is ecstatic with whatever they buy, they’re likely to return to your business for repeat purchases. Its much more profitable to have a customer base that will pay for high quality, rather than high volume sales at low prices which are unlikely to be repeat buys.
The best way to overcome price is to add value to your offering whatever that may be. Think McDonalds and the happy meal. They add value and take your eye off the cost of the meal by including the toy with the meal.
Build a solid team
Passionate, driven employees can make all the difference when it comes to creating a successful small business. When you’re interviewing applicants, look out for those who show real passion about your industry and what your business is doing. You want to be hiring people that will be the driving force behind your business, always willing to go above and beyond when it comes to your customers, your product and your service. Star employees like these will be the ones who help you take your business to the next level.
Appreciate the employees you do have and treat them as equals. Promote an open door policy and listen to their suggestions about how you can improve your business and make it more profitable. Your employees see your business as your customers do, so they’re valuable insight into how your customers think and view your brand, service or product.
Always be planning ahead
Running a small business can be challenging, but it’s these challenges that drive entrepreneurs. To be an entrepreneur is to take risks, but in order to make the risks you take as profitable as possible, you need to calculate each risk to see which ones are worth investing your time and money into.
Always be planning ahead and thinking about what your next move will be. If you want to maximize your profits, you need to avoid stagnation at all costs. Enjoy your success when it comes, but still keep in mind what your next move is and how you’re going to make the next month your most profitable one yet.
A great strategy for planning ahead that I use is to spend 1 hour a day writing out all the ways I can improve my businesses, predicts and services for our new and existing customers.
You’ll come with up with a lot of ideas you can’t use, but you’ll also find some ideas you can use.
Well that’s it from me for now.
Stay tuned for next week’s post, which is the last in our small business marketing series and please share this with people who can benefit from it so we all build better businesses.
Previous posts in the small business marketing series you’ll find interesting:
Jaffaman Eddie (AKA Eddie Bryant) is the fearless leader and Commander In Chief of Creative Copywriting Solutions, Eddies Content, Copywriting and other businesses under the Eddies brand. A published and well established “A-List” copywriter and visionary marketer Eddie and the team create marketing assets for businesses that keep delivering cash in the bank results long after the original investment using Australian copywriters and content writers for Australian businesses.
Eddie and his team are in partnership and connection with Australian business service professionals, Entrepreneurs, retail services and others hungry to multiply new and repeat sales online & offline using direct response copywriting, marketing and personal branding while also teaching people in business how to reduce their marketing waste.
For more information about Jaffaman Eddie and the team at Creative Copywriting & Content Solutions click here or phone: 0412 288 339