5 Ways to Make More Money From Your Business in these tough times.
A business is an organization set up for the sole aim of profit creation. These are 5 simple business tips to improve the amount of profit you make.
- Reduce your cost. The 1st thing is to reduce your unnecessary costs. There is a popular saying that goes cut the fat, not the muscle. This means you cannot cut the important costs to your business otherwise it becomes penny wise but pound foolish. Today, review all your expenses and ask yourself the provocative question- what can I remove that will NOT affect my business? If you run a business that doesn’t involve lots of client interaction, you may want to work from home, and not incur rent fees. If you run a small chops/catering service, you may want to work from home at the start up phase e.t.c. These days, professional presence on the web is a good start.
- Increase the number of customers. Another way to make more money is to increase the number of clients that you serve or sell to. It’s simple, if you had 50 clients before, give yourself a target to grow that by a specific number. Be deliberate about it.
- Make your customers to buy more: Find creative ways to make your customers to spend more. Example if you have a salon, you can give bundle offers. E.g ‘do both a pedicure and manicure and get a free eye brow make over’. If you sell fabrics, you can pair some fabrics and sell at wholesale prices, if you render services, encourage your clients to get a loyalty card so they patronize you more.
- Offer more expensive packages– This is another way to make more. Design special packages that deliver even a better experience for your customers and make them pay more for it. This is obviously not a mass market approach, be choiceful on the customers that can pay for these premium services. Examples–, if you have a school, you can have a special after school package for working mums to help children complete home work and they pay for it.
– If you have a baby retail store, you can have premium brands that are more expensive but will appeal to a certain class of clients.
– If you have a salon, you can offer a VIP/express service unit where clients don’t wait at all but pay extra to get immediate service.
– If you sell clothing, you can stock some more expensive brands that some clients can pay for.
– If you are a caterer, you can offer some extra variety packages and charge for it.
This should be on top of the mass market business approach and should be clearly targeted.
- Invest back in the business: The last tip is to invest from the profit into your business so it grows. Don’t eat your seed, sow it
Good luck! Please, let us know which of these has worked for you.
Picture credit: happy black woman