How Can I Make More Money With My Small Business?
There are over 30 million small businesses in the U.S, which shows we're a nation of entrepreneurs.
Business owners are determined to capitalize on their passion which is why they’re constantly brainstorming new ways to boost profits. Perhaps you’re wondering “how can I make more money with my small business?”
If that sounds familiar, you’ve come to the right place. Here’s how to earn extra money with your small biz.
Do Market Research
Before we discuss how to increase your revenue, it’s important to conduct thorough market research so you know there’s enough interest in your product. You must also know your target audience by creating a buying persona so it’s easier to tailor a marketing campaign to them.
As a small business, regularly re-evaluate these so you can make necessary adjustments. The same goes with your business plan, make sure you’re on the right path and still turning profits. You may notice a missed opportunity that you can try to capitalize on.
Calculate the Exact Costs for Your Business
It’s evident you want to make more money now but you must focus on where you’re currently at. Analyze every part of the revenue and cost chain such as how much gas you use during delivery to how much yield a part of machinery produces.
Tracking your business’s finances highlights areas where you can cut back. For instance, tell your vendors you’re price shopping so you arrive at a better deal. Or consider working with large discount suppliers because they often have great offers.
Get into the habit of regularly monitoring your finances so you can see what’s working for your business and what isn’t.
Rent Out Your Business Premises
Another way to make more money is to rent out part of your business’s premises.
Decide whether you need all your current space because you could rent part of it to other businesses that may want a cubicle or a corner. You can also throw add-ins like WiFi, access to the coffee machine, and printing. Or if you’ve got an unused room then turn it into an office for someone else. You can even rent your warehouse or garage as storage space especially in cities where you can charge a premium price.
Consider a Side Hustle
Successful business owners constantly funnel money back into their organization so they can improve products or their marketing strategy.
Both make both money but you’ll need a foundation so you can do this without compromising your profit. Consider a side hustle to cover overhead costs or other expenses so you can continue investing back into your business.
Focus on Current Customers
Research found it's 60 to 70% easier to convert existing customers than new prospects. Plus, repeat clients are more likely to spend more so focusing on them is an easy way to increase revenue.
For instance, create a loyalty or referral program that won’t only boost profits but will grow your customer base. If you run a spa then hand out punch cards that may offer a 15% discount on their next visit.
Automate Where Possible
A simple way to grow your business is to minimize mundane tasks so you can focus on important aspects of your business. Use automation software and online solutions so you don’t spend hours poring over spreadsheets or time cards. For instance, not only is it safe to use eToro but it's also a useful trading platform for businesses.
These are cost-effective solutions so you can manage your team, clients, and finances using a single platform. Plus, it means you ditch paper which is inefficient, wasteful, and more expensive than going digital.
Share Out Your Employees
You likely have a talented, marketable team working for you so consider sub-contracting them to other businesses. If you have highly-skilled managers then hire them to other firms so they can learn about team-building and overseeing their team. Your staff will also be grateful for the valuable learning experience of temporarily working for another company.
And if your business’s finances are dwindling, then lending out staff means you don’t have to fire them. You can arrange a contract so you only hire them when you need them.
Increase Minimum Order Prices
Small businesses want to shift excess stock quickly so create incentives so customers buy them. This is especially true if you have a line of new products coming in. Aside from basic discounts, consider bundling stock as it increases the size of the customer’s order.
Harness the Power of Social Media
Nearly 73% of marketers believe their efforts through social media marketing have been “somewhat effective” to “very effective” for their business.
You must have a strong online presence by posting creative posts so you can engage with your clients and promote your business. Optimize them by using Facebook or Twitter to get customer feedback and Instagram or Pinterest to post images of your products.
And don’t forget to upload customer testimonials or informative videos about your product on YouTube.
How Can I Make More Money With My Small Business?
Now you know the answer to “how can I make more money?” regarding your business.
Constantly analyze your finances, automate admin tasks, and focus on your current customers as they’re the lifeblood of your organization. Make adjustments when necessary and focus on creating a robust social media marketing strategy so you further your reach. Good luck small business owner!
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