All entrepreneurs want their businesses to bring them additional profit, but not all types of businesses can do it without expansion. Normally, you can increase your revenue by increasing the size of your business. What if your business is small? Is it possible to squeeze more money out of your small business?
It’s not impossible to make your small business earn the way big companies generate revenues. If you’re running a small restaurant, you can compare it with similar restaurants in terms of earnings. If you happen to find similar restaurants with similar size and products, you might notice which ones do better than others.
This means that size doesn’t matter in means of making more money. It’s how you run your business that matters. Today, we will go over five ways you can squeeze more money out of your small business.
- Train Your Salespeople
Some small business owners don’t have any sales teams because they themselves are the ones who work as sales agents. This is only good in the beginning; however, the time will come your challenges will get bigger, and you will no longer have enough time to sell your products or services on your own.
You will have to hire a sales team, but you don’t need to have a lot of salespeople working for you. You can start with a couple. All you have to do is to train them well because a good salesperson can bring you output, which can be done by five average sales people. This means you can increase your revenue five times by training one salesperson properly.
Selection is also a key factor to make sure you have a very talented team. For managers, you can have them undergo a series of tests from certified executive assessment providers.
- Diversify Your Products or Services
Let us say you have 10,000 units of a product and the size of your market only includes 5,000 customers. Each customer can only buy one unit which can be used for many years. If all these customers have already bought, you will have to wait for several years more to sell the remaining 5,000 units.
But if the remaining 5,000 units are different products, there is a chance that the same customers will buy all the remaining units for their different needs. This means that product diversification can maximize your limited market and inventory.
When you hire a sales team, you can expect sales, but when you hire administrative staff, you cannot expect them to work in sales. The cost of paying them is inherent and considered overhead. If you want to get rid of this cost while enjoying the same output, you can use productivity apps that can perform their tasks automatically.
- Social Media Marketing
Imagine you have 10 million followers on Facebook. You post a certain campaign, and it is shared by 10% of your followers. This means that 1 million people will promote your post. What if 10% of those 1 million followers also have 10 million followers? This is a great advertising campaign, and it is for free. Now, your aim is to gain more followers.
- Quality Products and Services
Selling high-quality products like a PACS system or services will always generate sales far more than the marketing effort. The power of word of mouth begins with a satisfied customer. If your products or services are high-quality, there will always be someone who will spread the word for you.
Most successful business people started from small businesses. They were able to multiply their businesses in a short period of time by applying similar strategies as we’ve seen today. If you want to follow their path, your first objective is not to expand your business but to first expand your revenue. Afterward, everything will just fall into place naturally.
By: Lee Flynn