In the quest to get more customers and grow sales, many small businesses lose focus on something that is vitally important – Profit! Whether you are just getting started or well established, here are some tips to help you put more profit on the bottom line and more money in your pocket Be Different & Compelling Too often small businesses do what everyone else is doing. They tell customers what they do and just compete on price. If you want to avoid this trap (and you should), start talking benefits not features. Customers today have many choices, so give them a reason to choose you over others. What makes you and your business compelling and different? Now different doesn’t need to be unique to you and you alone. It simply needs to be something you do very well that you can promote or guarantee – at every opportunity in all your marketing! It’s easier than you think; but if you are not sure, start by asking your customers. When you stop competing on price, you’ll earn more and create profitable growth in your business. Avoid Trying to Serve Everyone Who are your ideal customers – those who value what you provide, at the level you provide it and at the price you charge? These are the customers who are happy to work with you, rave about you and often refer others. It shouldn’t be everyone. Too often businesses spend a lot of time and energy trying to satisfy everyone and end up serving few people well. It hurts your reputation and definitely impacts your profit. So nail down your ideal customers, learn more about their needs and build your business around them. What products or services do they need? What are some of the challenges they face? What level of service, payment options and availability do they expect? Once you are clear on this, attracting more of them is much easier – and profitable. So be willing to think smaller to grow bigger! You’ll not only make more money, but you will enjoy your customers a whole lot more. Plan Your Growth Build your reputation on your core products and services before you start jumping into new areas and new products. More is not always better. Stick with what you do well, build your reputation on it and only expand when you have the resources and ability to deliver what you promise and do it profitably. Don’t let unprofitable growth erode the profits in your small business. Know the Numbers You can’t manage what you don’t measure – and what you measure you can improve. Successful owners of all sizes track and monitor what is important to them and their business. What numbers should you track to measure your progress and success? While they vary by business, some common measures include sales, gross profit margins, breakeven, number of leads, sales conversion rates, average sales dollar per customer and net profit. Knowing where you are today can help you make better decisions and prioritize what needs to be improved. Do you know how much profit you make from each of your products or services? Or which customers are profitable? If you knew this information, would it change what you market and who you target? The answer is likely YES! Learn to Love Systems Finally, learn to love systems. Many small businesses have no documented systems of how they do what they do. As a result, there is little consistency – a key to productivity, efficiency, customer satisfaction and profitability. Many small businesses or solo professionals assume only big businesses need systems. They’ll say things like, ‘We’re small, we talk to each other, and we all know what needs to be done’. And maybe this is true when you first get started and it’s just you. But what happens when you grow and suddenly you are serving more people, or bringing in new staff? What happens when people leave and take the knowledge with them? What happens when you want to outsource work you currently do? What happens when you, as the owner, want to go away for two weeks with your family? If you want a business that provides consistent service with less effort and more profits, then make systems a priority in your business. So whether your business is well established or relatively new, you can make it a success if you focus on creating uniqueness and niche your business, plan your growth, know your numbers and always look for ways to systemize your business. The payoff will be there on the bottom line!
Article Source: http://bizymoms.com/business
Joan Nowak is a Small Business Profit Builder, seasoned Business Coach, and creator of the Hybrid Coaching System for small businesses. For additional ideas to attract more customers and grow your small business, visit www.hybridbizadvisors.com. While you are there, join her mailing list to get her monthly eNewsletter and receive a free copy of her eBook, Mastering the 7 Elements of Business Success.