Congratulations, you own your own business. You’ve worked hard to make it sustainable. But what now? You want it to grow and still want to make a profit? So how do you do it successfully, without spending a fortune? Here are some tips to consider about how to grow your business profitably.
Manage your costs
The most important thing to do is to manage your finances. Whilst you are trying to grow your business, you should make sure you are not spending money unnecessarily. Look at your spending, is there anything that you can cut back on or cut out completely? Are you getting the best deal from your suppliers, go back to each of them and ask them if they are able to make any reductions. Do you own or rent premises? Are you using this space efficiently? Are your processes efficient. Is there anything that you could streamline? How about your labour costs? Not only look at staff costs, but also think about effectiveness, materials etc. Are there energy savings that you could make?
Are you ready for expansion?
Is the product or service you sell ready for expansion? Something that works really well at one level, may not work model on a bigger level. Do you have the right systems in place to scale up? Have you thought about what being bigger looks like? Have you thought about any hurdles that you may face when things take off? Try to plan for these changes in advance by building it into your plan. By not doing so may incur unforeseen costs, which would be counterproductive.
Once you are sure it will be worth expanding look around the market. Who will your new customers be? How much will they pay for what you are offering? Review your prices and compare your products and services against your competitors. How will your customers by from you? Will you expand your online services? Introduce new methods like delivery?
Can you upsell or cross sell to your existing customers?
The Pareto principle, also known as the 80/20 rule whereby 80% of your profits come from 20% of your products/ services, usually also applies to customers. So could you focus more on your profitable customers to push sales? Think about upselling and cross-selling. Do you have the right team in place to do this?
How will your new customers know what you have to offer? Ensure a solid marketing plan is in place, depending on your budget.
Getting advice is one of the best things to do, whether it be bouncing ideas off someone or listening to financial advice. It can help give you the confidence to grow your business profitably. If you would like to speak to a business advisor at RBSS Consulting. Give us a call on 0333 355 1696.
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