Running a small business and looking to increase your income? Whether your business is brand new or well-established, generating more revenue, and ultimately more profit, is a common goal. While growing your business and your customer base is an always-on strategy, there are other ways for your business to make more money. Here are five ideas to keep those dollars rolling in.
1 Create package deals
Whether you run a product or service-based business, packages could work for you. In order to get your existing customers to upsell or buy more, carefully package your products and/or services to offer more value. Combine your best-selling items and present them as a one complete solution.
Many businesses are also shifting towards value-based pricing in order to increase their profit margins. This type of pricing lets businesses base their prices on perceived value from the customer. Just remember to always keep an eye on your competitors, so you don’t price yourself out of the market.
2 Reward your customers
Word-of-mouth is one the best, and cheapest, ways to increase your sales. While it can be hard to control, one way to generate more interest in your business is by setting up a customer reward program. You could gift existing customers discounts after they make considerable purchases, or you could start an affiliate program that compensates customers who promote your brand. This is particularly useful for micro influencers who may sharing your products or services on their social media platforms.
3 Start to sell online
If you haven’t already jumped into the world of digital sales, now’s the time to start. Create a website for your business and get started on social media. If you’ve already got a digital presence, now’s the time to make it even easier for your customers to buy your products or book your services online. Start an ecommerce store and open up a whole new revenue stream for your small business. Make it easy for people to find you and purchase what they need.
4 Save time with automation
Time is money and if you can start saving your time, you’ll effectively be making more money. Are there any ways you can make your business more efficient? Perhaps you can streamline processes and put structure in place to avoid doubling on tasks. Invest in automation in order to manage your business workflow and save time. Small tasks such as invoicing, payroll and social media can be simplified through automation tools.
5 Cut business costs
One of the simplest ways to generate more profit is by cutting your business costs. This could something as drastic as downsizing on your office or warehouse space to simply switching suppliers. Renegotiate ongoing costs such as electricity, office supplies, internet, insurance and vehicle maintenance. Working with freelancers and contractors can help minimise your staffing costs and invest in accounting software, like QuickBooks to take care of your own books.