New Year’s Eve is the traditional time to make changes and set goals for the future. The same should be true for your business; the approach of a new year makes it a perfect time to assess how your company is doing and where you can make improvements. Most business owners simply resolve to make more money in the coming year, which is easier said than done. However, there are several things that you can do today to help drive profits to your bottom line. Some of these involve an investment of time and effort, while others are relatively quick and easy changes. All of them can help improve your business in the next year.
Maximize Your Social Media Impact
If your business isn’t already on social media, it probably isn’t performing nearly as well as it could. Social media is a free marketing tool that can reach thousands of potential customers with little effort on your part. Setting up profiles on Facebook, Twitter and Instagram are easy and can help drive a lot of eyeballs to your business.
For further online engagement, consider using a tool such as Hootsuite to manage your entire social media marketing strategy across all platforms in one spot. It integrates all of your profiles, engages with your customers and develops analytics reports to let you learn about who is checking out your business.
Use Intelligent Marketing to Improve Return on Investment
Intelligent marketing is a cornerstone of any successful business. Good campaigns can generate several dollars in new revenue for every marketing dollar you spend. Many businesses attempt to market themselves by placing advertisements and hoping for the best. For a much more efficient and cost-effective method of marketing, identify some of the most common characteristics of your customers and target prospects that look just like them. This type of targeted marketing can result in a higher conversion rate at a fraction of the cost.
By marketing to prospects that have a higher chance of converting while avoiding marketing spending on people who are unlikely to become customers anyway, you generate a significantly higher return on investment from your existing marketing budget.
Review Your Profit Margins
Your small business should be periodically reviewing its costs and revenues. The costs of the goods and services that you use for your business have probably been rising over time. If your costs are rising, you should be looking at passing those higher costs on to the consumer.
Another thing to review is the profit margins for comparable businesses in your area. If you’re an accountant and you’re generating a 15% profit margin, while similar accounting businesses are producing 25% profit margins, consider lifting the price you’re charging your customers. If you change your pricing structure to reflect the norms of your industry, you may be able to increase your bottom line profits while you minimize customer attrition.