You might love what you do. But, at the end of the day, you’re in business to make money. And if you want to thrive, rather than just survive – that means looking for ways to increase profitability.
Here are five ways you can do that:
1. Know your numbers
As they say, the devil is in the details. That means getting to grips with your financials so you know what money is coming in each month … as well as where it all goes. You can then review your expenses to see where there’s room for improvement.
2. Review your pricing strategy
While raising prices can strike fear into even the bravest small business owner, you don’t want to be in a race to the bottom either. Undercutting the competition might bring in more clients but it can come at a great cost to your business.
What do you do instead? Focus on the value you provide to customers. Because if you give them a great product or service, they’ll come back again and again.
3. Market to your existing customer base
Getting new customers is great. But if you neglect your existing customers in pursuit of new leads, you might be doing your small business a big disservice.
That’s because it costs around five times as much to attract a new customer than to keep an existing one. What’s more, increasing customer retention rates by 5% can increase profits by between 25% to 95%. So find ways to keep your business top of mind with your existing clients – whether through regular social media posts, blogs or newsletters.
4. Work out where your time goes
As a small business owner, you likely wear many hats. But if you’re spending too long on low-value activities, you won’t have time to drive results for your business by considering the bigger, strategic picture. Once you’ve worked out where all your time goes, look for activities that can easily be outsourced, such as marketing and bookkeeping.
5. Partner with an experienced accountant
You know your industry like the back of your hand. But when it comes to taxes, accounting and bookkeeping – your knowledge will likely be less on point. Partnering with an experienced accountant doesn’t just free up your valuable time. It also gives you access to their expertise and skills.
Want a more profitable small business? Get in touch with Accounting Excellence today by emailing info@universeaccountants.com.au or calling 0431 981 005.
