Running a successful small business in the current climate is about as challenging as it gets. With so much uncertainty swirling around, it can be tempting to safeguard a comfortable position, and put any aspirations of growth to one side.
However, as many have found out to their detriment, resting on one’s laurels rarely brings with it guarantees of success. Four in ten small businesses fail to make it to five years, while many others struggle to increase profits year-on-year.
But with the right mindset and a proactive attitude, your small business can avoid becoming an unhappy statistic. In this blog post, we share six simple steps to help you cut costs, boost revenue streams, and ultimately increase profits.
Step One: Take the time to stand apart
Like a peacock spreading its big, colourful feathers, your business needs to puff out its chest and strut its stuff to stand apart in a crowded marketplace. Often, it can come down to fine margins when a prospect picks between your business and a competitor.
With that in mind, you need to exhaust all available options when it comes to giving your business the edge.
- Are you in an industry where certification and accreditation matters? Make sure you have everything you need, and it’s fully up-to-date.
- Is word-of-mouth particularly effective when it comes to attracting new customers? Lean on the concept of social proof and place testimonials front and centre on your website.
Additionally, you should consider how you are packaging your product or service. Are you creating real value in addition to your core offering? Doing so can encourage a prospect to choose your business over another, which will, in turn, boost your bottom line.
Step Two: Take stock of your processes and workflows
The next thing we recommend you do in your pursuit of increased profits is to audit your internal processes and workflows. As they say, time is money, and if you’re spending too much time on inefficient and unproductive activities, you’re robbing yourself of the opportunity to drive your business forward with greater purpose.
Admin tasks, in particular, should be looked at and, if possible, outsourced to help you remain focused on the bigger picture.
Step Three: Introduce automation
As a small business owner, it can be difficult to juggle so many different responsibilities. After all, there are only so many hours in a day. Well, one of the best ways of saving yourself precious time is to automate admin, finance, and marketing tasks.
Platforms like Xero and Receipt Bank can help you minimise manual data entry and give you access to real-time information at the click of a button.
Step Four: Streamline your expenses
Even with steps two and three taken, an automated and efficient system won’t matter a jot if you don’t regularly review your expenses. Set aside time each month to analyse where your money is going, and identify opportunities to streamline business costs.
Reducing your overheads will always be one of the most effective ways to maximise profitability.
Step Five: Consider something ‘new’
Depending on your industry, you might consider trying something a little different in order to boost sales and increase profits. This could include developing new services or new products in conjunction with the needs and expectations of your existing clients. Or it could involve attracting a whole new set of customers or entering into a new market.
If you do decide to take this step, it’s vitally important that you’re armed with appropriate and up-to-date market research.
Step Six: Make – and stick to – a plan
Finally, if you’re serious about growing your small business, you need a plan.
The steps discussed above all have a part to play in an organised and well-thought-out business strategy. You need to prioritise these steps, align them with your business goals, and then begin implementing them.
Take the first step towards increased profits…
As part of our Super 6 services, we can offer support as you take these steps. We’ll help you draft an achievable business strategy, and identify the areas in your business where you can cut costs, boost sales, and Increase Profits.
Speak with one of our friendly advisors to find out more. Contact us today