Think of the New Year as an opportunity to make some resolutions toward maximizing the profitability of your business. It might only take a single, effective resolution to bring an enormous increase for your company’s bottom line.
Get Involved in the Community
Your list of small business New Year’s resolutions should include some ideas for community involvement. For example, sponsoring a little league baseball team would help you develop a network consisting of the parents of children in the league. Sponsoring a race, such as a 10K event, could help people associate your business with such virtues as health and competitiveness.
Focus on the Positive and Forget the Negative
Identify your best clients and develop a plan for expanding your business with them, both in terms of transaction size as well as frequency. Focus on promoting your best products or services by demonstrating why they are more desirable or useful than lower-cost alternatives. Make a point of emphasizing the availability of accessories or other extras to get the maximum sale with each transaction. When customers express their satisfaction about doing business with your company, ask them to recommend your company to others whenever possible. The holiday season is the time to let customers know that you appreciate their patronage by sending them gifts. As you review your client list, identify your problematic clients, such as those who regularly complain, demand excessive amounts of your time or regularly delay payments. Make a point of focusing your efforts on satisfying your best clients and spending less time on the troublemakers. If they decide to take their business elsewhere, they become someone else’s problem, giving your company more free time to serve better customers.
Important Math for the Small Business
Familiarize yourself with the important mathematical formulas that are the keys to a bigger bottom line. Learn how nudging your conversion rate higher can bring an outsize jump in profits. If you are conducting your business online, peruse the significance of online marketing metrics, such as the bounce rate, which measures the number of visitors who leave your website without spending an adequate amount of time to review what you are offering. Making note of your channel-specific traffic is a way to document how many visitors came directly to your site and how many came from referrals from external links.
Maximize Profit by Boosting Efficiency
Notice whether any of your vendors regularly experience delays that slow your ability to service your own clients. Your business will benefit if you can find more efficient vendors before you lose customers.
Customer relationship management software can alert you to such situations. A CRM platform could be a worthwhile investment, because it enhances your contact with customers by keeping all of their information at your fingertips. CRM automates the sales process and tracks transactions with vendors of products used by your firm. A useful CRM platform for small businesses is Method CRM, which syncs with QuickBooks accounting software, eliminating the need to make duplicate entries across both platforms.