Let’s set the scene. You have recently started a small business, and you’re one of the lucky few that are making a profit in their first year of trading. While that’s a reason in itself to celebrate, you can’t help but wonder if there’s some way to supercharge your revenue.
Sure, you don’t expect to make millions in your first year. But, if you’re only making a modest profit, you will no doubt be keen to expand your operations and generate more profit in a shorter timeframe. So, what can you do?
Well, it turns out there are five simple strategies you can follow to propel your small business into the stratosphere! What’s more, they make a lot of sense when you think about them! Here are some ideas that you need to put some serious consideration into:
1. Sell Products That Complement What You Do
Let’s say that your business sells vacuum cleaners. Customers that purchase such goods will usually buy other products like waste bags, extra brushes, carpet cleaning products and more. Why send those people elsewhere when you can offer a one-stop-shop solution for all their needs?
2. Streamline Your Cash Flow
If you run a service business, and you primarily serve B2B clients, it’s likely that you have to spend a lot of time waiting for them to pay their invoices. As you can imagine, some customers take longer than others to clear their balances. In fact, the sad truth is that some might even be unable to pay you at all.
One thing you could do with invoices issued in high amounts is to consider invoice financing. In a nutshell, a finance broker will pay the invoice to your firm and chase your client for any outstanding amounts. That gives your small business peace of mind knowing that you won’t go bust because of a client’s failure to pay you!
3. Consider Offering Franchise Opportunities
One way to expand your reach into other regional or international markets is by offering franchise opportunities to other entrepreneurs. It’s a win-win situation for all involved, as you get to promote your brand with little expenditure, and entrepreneurs don’t have to “start from scratch” when it comes to brand exposure and marketing.
4. Don’t Strive to be the Cheapest in the Market
You may not think it. But, many people are often put off by retailers because their prices are unusually low! Sure, folks will only pay what they think something is worth. However, if your low prices stick out like a sore thumb, people could become suspicious of your business!
Instead, it makes sense to position yourself as a competitive firm in the market. You could even justify higher prices than your competitors by offering a premium service or extended product and service warranties for free, for example.
5. Be Creative with Your Promotions
It’s no secret that some companies offer massive discounts on particular times of the year. You should be taking advantage of an upcoming event or holiday that ties in with what you sell. That way, you can encourage customers to spend more money with you.