Simple Ways To Increase Profits!!
Increase Your Profits
6 Tips for Enjoying a More Lucrative Business
As a small business owner, you should always be on the lookout for ways to increase profits. Though there are many ways to accomplish this, sometimes you have to “revisit” some of the basics. What are some simple things you can do to accomplish that?
1. Remember the 80/20 rule
Also known as Pareto’s Law, this rule states that 80% of your business comes from 20% of your customers. Do you know which of your customers comprise that 20%? If not, it’s time you found out. You can then target them for special promotions and service offerings.
2. Getting that 20% to retain more services more frequently
Now that you know which customers comprise that valuable 20%, you must try to get them to use more of your products and services more frequently. Consider expanding your offerings so that you are billing current customers more often; this is called Geometric Growth. Geometric Growth also enables you to attract new clients who might be interested in more than just your new services. This tip may require you to add complementary products and services to your menu, but the effort would pay off in increased profits.
3. Determine what motivates the 80%
By focusing on the 20%, don’t forget there is still value in the 80%. Studies show that it’s better to spend your time retaining current customers than it is trying to find new ones. That 80% represents a customer base that is familiar with your products and services and values your offerings. Now you need to determine what motivates them and how you might be able to get them to join the 20% by patronizing your business more frequently.
4. Ask customers what they want
No one can tell you how to best serve your customers than your customers themselves. What do they need? Are there other services they wish you offered? What might get them to more readily refer your services to friends and family? You may discover things that are difficult to hear. You may also get the most valuable business advice yet! These clients will definitely offer more personal and specific information than you could get from any other source.
5. Demonstrate gratitude
Nothing makes a customer feel more valuable than by a genuine show of gratitude. This is also a good way to increase retention and inspire customer loyalty. Whether you do this by giving them a modest discount or by thanking them personally for their business, it will be a gesture well remembered.
6. Show your face
You just can’t put a price tag on becoming a familiar face in the community. The more exposure you get the more free exposure your business gets. Ensure you’re aware of all the community events and, when possible, become a permanent fixture. Be especially aware of those that would afford you the opportunity to have a little booth from which you can distribute business cards and brochures about your business. Remember that everyone you meet is a potential customer and may associate with hundreds of other prospective customers. In this it becomes a numbers game. The more people you meet, the greater your potential for increasing your customer base.
These six simple tips can help you take the necessary measures to increase your business’s profitability. One last tip not included in the above list is to secure an accountant to help you analyze your financial information in order to determine how best to manage your income and outflow so that your business can achieve greater profitability. Call Daniel Accounting, LLC, today at 740-881-1954 for more information on how we can help your business become more lucrative.