‘I don’t want my business to grow’ said no entrepreneur ever. In today’s world, the rise of modern marketing skills and channels of mass communication have made business more competitive than ever. However, the ones who master the right practices and understand their business and audience well, sail on the ocean of businesses like a staunch yacht.
Different industries have different dynamics, but there are some proven strategies and methods that have helped professionals become giants of several industries and have been a learning point for the newly budding businesses.
Here are 5 proven tips from some of the experts that’ll help you buttress your business and scale-up substantially.
Taking Profit Leverage Effect in the picture:
To understand this, you need to see the other face of making a profit. A profit isn’t always about making sales and slicing margins from them — sales cost also comes into account. Gary Wilde, Executive Wingman at Widle Success explains Profit Leverage Effect — selling a dollar of goods might only add a fraction of dollar to your bank account while a dollar saved straightaway counts as a bigger profit margin, and saves you the cost of goods or services.
In other words, instead of focusing entirely on the sales, you could also open doors of profit without even interacting with your customers. Efficient re-engineering and resourceful procurement could save a lot of money — which could be used to create more profit.
Hiring full-time employees might not be your best option in the budding stages of your business .
According to Dane Kolbaba, the CEO of Houston Party Ride, hiring full-time employees comes with a few obligations which you might not want to get involved with such as tax implications, healthcare expenses, etc. You could use your funds more efficiently on 1099 contracts who you can pay the exact amount the task requires and can work on a 100% commission. Hiring and firing process is much easier in case of 1099 contractors and they are a great money-savers in the early stages of any business.
Don’t forget the 80/20 rule!
The parent Principle, that also goes by the name of ‘80/20 rule’, is one of the most proven techniques of profit maximization. The rule focuses on the analysis of all of your customers and their influence on your sales. The analysis helps you know the customers that have a greater impact on your profits so that you can emphasize on them. In a nutshell, the Executive Director of Gordon College, Alexander S. Lowry explains 80/20 rule as a great tool to identify your customers that make a big contribution to your profits and should be given more focus.
Value your online reputation:
The power of the internet has taken our generation by a storm — regardless of how big or small a business is, having a good online presence is no longer a tactic or an opportunity, but a necessity for any business.
Denise Hilton, Founder of Web employed, believes improving a company’s online reputation is a brilliant way to have an active communication with its customers and to reach them through a different medium in a more economical way — which gives a massive boost to your profits.
Know your customers and adapt to their requirements
This is a simple yet an essential tip by Ted Rollins, Founder Partner & Executive Chairman at Valeo Partners who explains in order to grow, every company needs to understand its customer’s requirements and adapt accordingly. Befitting your business with your customer’s requirements positions you better in the market with increased profits.
These were some of the most basic and instrumental tips that helped the aforementioned people to succeed and not to mention, could be applied to any business, regardless of the industry. Application of these tips could maximize your profits without spending a hefty sum of money.