When you’ve been working away on your startup it’s inevitable that it’s going to take time to get off the ground. It takes timeto start making you the money you deserve, that reflects the hours and the effort you’re pouring in. So how to grow business online and make it profitable? 3 Small Business Tips to do just that.
Well, now it’s time to look at exactly how you can start making your business a more profitable one and open up those profit margins.
Let’s take a look at three small business tips to start making you more money.
This is where the profits are won or lost. You may get plenty of inquiries but if you’re consistently failing to convert them into physical sales, you lose. In that case, you need to start asking yourself what it is that’s going wrong.
The best thing you can do is to start from the basics when it comes to sales, whether that’s just you on the phones or whether you have a whole team working with you.
When was the last time you had any training in modern sales techniques? Could it be that you’re using techniques that are out of date and ineffective in today’s modern customer-led focus on business?
Find a training course from a reputable training company that hones in on improving your techniques and see your profit margin soar.
Chances are, your customers are happy with the product or service they receive from you. Chances are they’re happy to refer you to another potential customer. So why not harness that goodwill for your own advantage?
The best way you can go about this is by using actual testimonials from customers to great effect. Have them on your website, not just written versions but video too if you can find customers who are willing to go that far.
If you send out an email newsletter make sure to include these testimonials and send the message straight to your potential customer. You might also think about introducing a referral reward scheme among existing customers.
Whether you sell cars or sell copywriting services you need to be able to increase your customer rates to make more money. Clearly you’ll need to be able to back up your offer. So if you need to employ more staff, install better tech or better fleet management systems, then make that investment.
In the meantime, focus on increasing the number of customers you talk to, the number of pitches you make, the number of sales emails you send out. Whatever it is you have to do to talk and sell to your customers, do more of it. Set yourself realistic goals and objectives, by gradually increasing volumes but make a plan and aim to complete it.
You’re looking to increase your profits and that involves hard work. You’re already putting in the hours, so now is the time to focus on actions that are going to make your business work even better. Then you can finally bring in the kind of profits that you know your business is capable of.
Employee retention is a big problem for many companies. When you hire a new employee or member of staff you put in a great deal of time, effort, and money. Then, after you have spent out on getting your new hire up to the standard that your industry requires of them, they leave. That means another company gets the benefit of the development that you have invested in.
Losing staff is an expensive business and if you are perpetually haemorrhaging team members for one reason or another. You need to find a way to retain the staff that you have brought in. You need employee retention strategies.
When it comes to employee retention, first impressions are worth their weight in gold. The day that an employee joins your company is the most important in their career with you. This is the day that you get to create a lasting impression.
Many companies will assume an arrogant position when it comes to bringing in new employees. They are the company and the employee is just another cog in their machine. This is problematic, and you need your new employee more than you are giving them credit for.
Show your appreciation for your new staff members by making them feel welcome and part of the team immediately. Show them that you care about the contributions that they will be making. You can do this by providing them with a smooth and thorough onboarding process. Inductions take a lot of planning and effort, and you can help to manage this using software such as ELMO onboarding.
People like to stay in a job role that provides security and the long term prospects of progression. If a staff member can see where their career will be heading if they stay with your company, they will be more inclined to stay with you instead of trying their chances elsewhere.
Pay your staff a reasonable rate. Living costs can often skyrocket and leave wages behind, and if you are not reviewing salaries inline with the cost of living, then you will lose staff members who cannot afford to live with you. Remember, the cost of attrition and lost revenue due to staff leaving can be quite high. You can, therefore, afford to invest more money in retaining staff. When it comes to setting staff wages, you will often need to look at the wider picture and not just consider short term profits. Remember that paying a little more upfront for employee retention is WAY cheaper than a high employee churn rate.
Create a positive workplace where the achievements of your team are celebrated. Having upbeat managers who look for the good in their team members will incentivize your staff to push harder and achieve for a company where they feel accepted and valued.
Where development is needed, use constructive feedback delivered in a positive way. Offer support and really spend time in developing your team members rather than putting all of their training needs squarely at their feet. In the long term, all of these things will help to ensure you have well-trained staff who will stay with you for many years to come.
It’s true that there has never been a better time for starting your own business, but there has to be a follow up to that statement. While it’s technically easy to get a business up and running, it would be wrong to think that the entire process is easy. Having your own enterprise is never easy, regardless of what you’re setting it up. There are other matters, too, that you need to be aware of when building your own business. We take a look at a few things below. These shouldn’t put you off, but it’s important that you know them — so you can handle them before they become issues.
You should start any big project from a place of energy. If you’re not in the best place, then it’d be recommended to take some time and get to a position where you think you can take on the world before starting. Why? Because you’ll quickly find that running a business can be a drain on your energy levels. Aside from running around trying to get everything done, the stress can take its toll on you. As such, you’ll be well served by looking after yourself and taking the time to take a break and relax, even on your busiest days.
You have some skills, but you don’t have all the skills. Nobody does. While you’ll, of course, have confidence in your ability to succeed, remember that there’s a fine line between confidence and arrogance. Having your own business shouldn’t mean having your own unstable job.
For the tasks that you’re not able to complete to a high standard, it’s recommended that you hire a team member or outsource the work to another company. You’ll be doing what’s best for your own business, and also taking some of the pressure off your shoulders, too.
You’ll want to hit the ground running and begin building your empire. But you can’t forget that there will be legal requirements that you have to meet. You’ll be operating in a system that’s much larger than you or your business (and business), so it’s important that you’re doing things in line with the law. Very often, new limited companies overlook the IR35 Tax Legislation, which can create legal problems further on down the line. There may also be industry-specific rules that you need to follow too.
You’re in the business game in order to make money, but let’s not forget that money can be challenging. It can be problematic on a personal level, and for sure on a business level too. One mistake that new business owners make is that they don’t fully separate their personal and business finances. They think that it doesn’t matter when they’ve just got started, but: it does! Keep them separate from day one.
Finally, remember that you’ll need to figure out when the best time to grow is. You can grow too quickly or too slowly, and both can harm your company. If you don’t know when that time should be, look at hiring an outside expert to help you.