When it comes to business, making money is the name of the game. You might have started your company for other reasons along with making money, but it’s only successful and able to continue if you’re bringing in a profit. In some cases, making more money is the way forward and in others, it’s finding ways to save to prevent your outgoings from cutting into your profits. Here are just a few ways you can go about it.
Improve your marketing
Your marketing and advertising is what connects you to customers. Improve your marketing and not only do you reach more people, but the right people. Marketing is complex, it’s not just something you can guess at and so if you haven’t already, hire a team that can create a good strategy for you. Digital methods such as SEO, blogger outreach and social media marketing can all help you to rank more highly in search engines (meaning more organic traffic) and increase your online presence. Don’t overlook offline methods too- posters, flyers and billboards are a great way to advertise a local business. Attend expos where you can network with potential clients and decision makers. Run an event of your own at your business premises, make it fun and exciting and generate hype around your name. Give away marketing merch- things like mugs, hats and pens with your business name on. Find out what methods are best for your particular business, and utilise them so that you’re drumming up more custom. Marketing is the be all and end all in business, if doesn’t matter what you do or sell, you need to get out there to the right people. Don’t naively overlook this.
Utilise consumer holidays
Mother’s day, Valentines Day, Halloween, Christmas and other occasions are big money makers for most kinds of businesses. Take advantage of them. Package up products in a way that can be given as a gift, and target your marketing towards gift buying customers. Even if you sell things that aren’t gift shop type products, get creative. Sofa and furniture shops push ‘getting your home ready for Christmas’ and grocery stores talk about ‘preparing the perfect meal’ for these types of things. Have a think about people’s lifestyle and behaviour in general around this time, and target your products to them.
Jump on board with trends
Remember when everyone couldn’t stop debating ‘the colour of the dress?’ Well the company that made them released an alternative version in the other colour, and of course sold a ton of them after all the marketing that they’d had. You might not be lucky enough to be the centre of a viral outburst, but you can pay attention to what people are currently loving and raving about and get on board. It could mean stocking and selling some extra products for a while, or even shifting your focus to fall in line with consumer demand. Take the health craze for example, it’s not going anywhere and something many businesses can get on board with. With terms like ‘vegan’ and ‘gluten free’ rising massively in the past few years it’s clear that these are things people want or are interested in. If you sell food or food products in any capacity, expanding to suit these customers will increase your profits. Keep an eye on what’s happening in the world, and be sure your business is ready to adapt if needed. This will keep you relevant and help you to outdo your competitors too.
In the beginning, outsourcing makes a lot of sense. You can open new departments without the time or hassle of hiring staff, overhead costs or legal implications. Each company you hire is responsible for themselves, so you can have work done by them without any messing around in your own company. However, when you pay a company through outsourcing you’re also paying fees, and you’re able to avoid these fees if you stop using them. While setting up your own new departments can be expensive, once it’s all up and running you’ll be saving money. If business is doing well, continuing to grow and you’re in a position to be able to open your own departments, you’ll save money on outsourcing and it also gives you more control over this area of your business. Depending on the department, it can be a huge and expensive job so be prepared. Take manufacturing for example, the cost of machines, vehicles, warehousing and qualified staff to run things can really add up. So it’s something to do once you’re already making a lot of money and can afford to do so.
Buy your premises
Another way you might be wasting money in business is by renting your commercial premises. Buying instead gives you much more financial security, instead of making rent payments (which are essentially ‘dead money’) it’s going towards something you’ll eventually own. This means you have capital tied up in property which you have the option to sell if you ever need to raise money quickly. Once you own the building and are mortgage free, you’ll save a good chunk of money each month just from not having to pay this. Meaning you’ll see more significant profits.
Going global means you can sell to foreign markets, and massively increase your customer reach. It could be easy or difficult depending on what it is you sell. With digital and online products and services for example there are no barriers and you can advertise globally from the get go. With physical products, you have shipping to consider. The weight and materials could be an issue, so you might have to make changes. For example, photo frames could be sold with plastic or acrylic fronts rather than glass to make them less breakable. In some cases, the materials you use could be prohibited. It could be as easy as shipping products without batteries, or it could require total redesigns of what you sell. Your marketing is another thing to consider when you’re selling globally, in some cases a translation service for documents will be all you need, but when it comes to advertising you could miss the point of the message you’re making if it’s not done properly. Marketing can be subtle at times and it’s the underlying message that you’re getting across that sticks in peoples heads. Hire someone that’s able to properly communicate what you’re trying to say in the language, making sure it’s appropriate and not offensive.
These are just a few ways that you can improve your profits in business, either by selling more or by cutting your costs.
Will you be implementing any of these things in your business in the near future?