Making a profit is key to a small business’s survival. Use these six tips to get the basics right and help your business grow.
1. Understand your numbers
Knowledge is power, and having a thorough understanding of what money is going in and out of your business at any one time can help you detect any cash flow issues as they arise – and also plan for the future.
Financial management tools such as Xero or https://hyundaisemarang.id/ QuickBooks Online can get you organised and analyse your data, advises Anna Jonak, founder of The Elevatory business coaching.
“Then it comes down to pulling your monthly reports and understanding what the numbers mean so you can make strategic decisions,” she says.
2. Make sure your marketing is effective
“Marketing is the lifeblood for most businesses but it’s only worthwhile if it’s effective in attracting new customers,” says Anna.
Otherwise, you’re just wasting time and money.
Some of the best marketing methods for business owners on a small budget include networking in their local community or running small events, working with partners and collaborators, and using micro-influencers to help create viral social content, she suggests.
Product businesses should focus on Instagram and TikTok while service-based businesses should concentrate on Instagram and LinkedIn. But gaining good traction is “a lot harder than it used to be”, adds Anna.
3. Focus on customer retention
“Lots of businesses focus on attracting new customers but retaining them requires a lot less cost and energy,” explains Anna. “Businesses can only really grow through retention.
“Product-based businesses may want to look after current customers with discounts, loyalty and reward programs, VIP offers and new launches. For service-based businesses, think about check-in points, automated emails, releasing new content, referral schemes and a clear ascension model through your programs.”
4. Make the most of AI
From writing product descriptions and email sequences to social media posts, and blog articles and using the right hashtags, AI is there to help small businesses, says Anna.
“If you feed AI the right information and teach it about your business, who you are and how you talk, then it can start to talk like you. You can literally task it to write a four-part abandoned cart series or a nurture sequence that you can then tweak. Just be careful to fact-check and make it your own.”
“Business coaches are a fresh pair of eyes who can see gaps and opportunities that you can’t.”
5. Get the price right
Overcharging for your products or services can drive customers away while undercharging could drain profits.
Prices should be based on the total cost of sale (including production marketing, sales and all overheads) plus margin or profit, not how much the competition charges for similar goods or services. You may also want to consider setting prices that align with the quality of your work if you can communicate that value to your customer base.