Good ideas from Adseo.no
What can be done to increase the income potential of a small business?
Adseo.no gives you some simple suggestions.
Growth is often the only way to achieve the level of income you have decided to rise to.
Even so, it may happen that the business does not meet the goals that have been set for the business. It leads in the wrong direction, and the business simply does not generate the income that was expected.
One reason could be that the company’s actual income potential is not being extracted.
It may even be that there have been a number of income opportunities that have been overlooked or missed.
Loss of income can be caused by many different factors
- One could be a lack of response to your marketing and advertising activities.
- Another could be that the customers seek you out in the store, on the online store or wherever it may be, but they leave without buying anything and instead shop at your competitors.
- Loss of income can also result from a high proportion of returned purchases as a result of the buyers feeling that the product or service does not meet the customer’s expectations or that the customers regret it.
Here you will find some suggestions on how you can increase the income potential in your company:
Increase turnover
There are many ways to increase your income. One can, for example, take a closer look at the cash flow or analyze and change the distribution system.
One way is to establish new sales channels for the company’s products. If you run a shop, you can, for example, start up an online shop as well. An online store will make your company’s goods and services available to a much larger market.
You can sell your inventory and return items on online platforms such as
- eBay
- Amazon
which is well on its way into the Nordic market.
In addition, you can look at the possibilities of having your goods distributed through a nationwide chain or a larger dealer network.
If you offer services (for example web design, search engine optimisation, computer programming or the like) there are many opportunities to increase profits from your own efforts.
Consider the benefits of charging per hour versus per project for example.
As a small player, you may not be able to demand the highest hourly rates, and some potential customers demand to know the price they have to pay for a project in advance. Also consider the benefits of working for one client at a time compared to working on a project that has a wider reach and more potential clients.
Increase earnings with existing customers
It is easier to keep an existing customer than to always chase new customers. There is a strong connection between long-term loyalty and income to your company from a customer.
You can earn your customers’ trust and loyalty if you show them that you understand them and their needs better than your competitors.
Therefore, remember to always ensure that deliveries from you are experienced as profitable and satisfactory every single time.
You need to make sure that your customers feel that you are providing them with quality products or services. As well as the opportunity for a valuable partnership that they cannot find anywhere else.
The secret is to become the customers’ strategic partner.
Price as a competitive advantage
Loss of income can be due to the wrong pricing strategy. Perhaps your company is pricing products and services too low, thereby missing out on significant profit opportunities.
The problem is often a lack of understanding of the costs, which can give the business a competitive disadvantage.
Evaluate the company’s cost structure and pricing strategy without pricing yourself out of the market.
Increase your employees’ contribution
Many business owners have both a vision and the courage to want to turn a small business into a billion dollar corporation. You often have many good ideas, but no knowledge of how to manage employees.
With poor management, your own employees can be your biggest source of lost revenue.
Their mistakes and shortcomings can be a direct cost driver, their poor service can drive customers away, and dissatisfied customers result in a bad reputation in the market that can quickly be difficult to get rid of.
Teach your employees to care about your business.
Make sure employees understand the role they play in the business and what success for the business will mean to them personally. Employees must know what is expected of them through regular performance evaluations and follow-up.
Be visible to your employees and nothing is better than having an informal chat with them. Systematize feedback and let employees understand that you value their suggestions and ideas.
Create a working environment that encourages your employees to give their very best at work.
Adopt new technology
One of the most important measures to increase earnings is to automate the processes in a company. Check out how and which technological solutions can make operations faster and more reliable while reducing costs, improving efficiency and increasing revenue potential.
Technology can contribute to, for example, effective inventory management and relationship building with customers using inbound marketing systems such as HubSpot .
Technological solutions can provide concrete advantages that can give your business a competitive advantage in the market.
Get the most out of the tax benefits
You should always pay your tax with pleasure, but still there are many business owners who do not take advantage of the tax opportunities that exist to the extent that they can. If you manage firmly through all rules and regulations, your business can increase tax deductions in many areas.
Get the help of a tax expert or a financial adviser to go through the company’s tax duties and you can quickly find opportunities to save money and increase profitability.
Remember that the most important thing to increase the tax benefits is thorough planning in accordance with the regulations and proper documentation. Introduce routines to document every transaction in the company, small as well as large. Get a good accounting system that can keep track of all expenses.
Optimize your marketing
Last but not least! Many small (and large) companies usually cut back on marketing if cost cutting is introduced in the company. Most businesses regularly advertise their products or services in one or more places.
It turns out all too often that you don’t have routines for evaluating the effectiveness of the medium you advertise in, and decisions are often made based on assumptions and wild guesses.
A good conversion tracking shows which marketing measures result in more sales. If you use this knowledge, you can fine-tune your campaign activities so that you increase your company’s income by getting more for the money you invest in marketing.
We therefore recommend that you take the time to measure the effectiveness of all marketing measures.
See also the SEO Statistics article.
The entire process from how to handle the incoming leads to what is the result should be evaluated.
Adseo.no: Specialists in digital marketing
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Contact us today at Adseo.
