Profits are the lifeline of small businesses. As your profits increase and become more predictable, your small business has a greater chance of surviving—and most businesses don't.
Most of the time, small business owners can't afford to wait for the results of long-term, large-scale changes to their business model.
As much as possible, if you want to turn a bigger profit as a small business owner, the quicker you can do it, the better.
The following simple changes can help you maximize your profitability right away.
1. Convert One-Time Clients Into Recurring Clients
There are many reasons why converting your customers into repeat clients can quickly improve your profitability. Recurring customers tend to spend more and purchase more frequently than new customers.
2. Examine key performance measures
Falling sales, shrinking working capital, and rising costs are key indicators to monitor.
3. Manage your costs
More effective purchasing can improve margins. Eliminate waste of materials and time.
4. Encourage Referrals
If there's one marketing channel that can maximize your profits, referrals would be it.
5. Review sales to long term customers
You may find out some customers are not as profitable as you thought.
In most cases, a combination of these measures will give a boost to profitability. Incorporate these measures into your business plan and review frequently.
Be diligent and execute, execute, execute.
I hope these suggestions help you focus on improving results. Please let me have your thoughts: Gerry@polarisgroupmc.com
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