Everyone wants to increase their profits, but wishing helps no one. Taking practical steps to increase your fortunes is the only way to go. Here are five time-tested ways to up your small business’ profit potential.
One easy way to bring in more business is simply to expand locations. If your business operates behind a storefront, having more physical space means more opportunities to attract customers. A location in a new part of town means more access to traffic (both foot and vehicle), more neighborhood consumers, and a new set of community activities for your business. Of course, it also means more expenses, so you should only consider an expansion if current revenues justify doing so. And make sure your new location isn’t close enough to undercut you own business.
Adding value to a business you run can be as simple as burnishing your own credentials. Adding a graduate-level degree to your resume lends you the weight conferred by academia and suggests you are capable of sticking with a difficult process through the long haul. It can be rather difficult, however, to find the time necessary to devote to classwork in a traditional university setting, to say nothing of the possibility that you would need to relocate. Online MBA programs can solve that riddle, letting you work at your own pace without moving halfway across the country.
Beyond a formal educational setting, there are several things you can learn to increase profits and reduce expenses. If your business involves crafting or manufacturing a product, taking night classes or online lessons can let you expand offerings to attract new customers. If you lack accounting acumen or tax savvy, take steps to learn how to work with numbers and save yourself the expense of an accountant or tax preparer. Identify gaps in your skillset that cost you money or could make you more, and do what’s necessary to correct the problem.
Another way to make money by spending money is advertising. There are a wide variety of venues through which you can inform consumers of your products and services, from direct mail to print to television to online. Ads might seem like a pricey option, but not always. For instance, stepping up your social media presence can be done at a bargain rate (especially if you can get friends or relatives involved) and can draw in a highly targeted clientele.
One other option to increase your revenue flow is to reduce costs. Take a long, hard look at how your business operates. Do you need all your employees? Are your operating hours ideal for your business? Are your purchases all necessary? Efficient operations will let you squeeze the last little bit out of your business.
Hard work and intelligence are, of course, the top ways to make your business a success. However, using a few additional strategies can’t hurt. Think over expansion ideas, make a plan and execute it, and watch the money come rolling in.