Many entrepreneurs dream of starting a successful business. Success in business generally goes hand in hand with making a profit. There are actually a number of ways you can set up your business from the beginning to ensure you maximise profits. Here are some of our suggestions.
Use Your Website
Firstly, if you don’t have a website for your business, make one right now! In 2016 it is essential for any business to have a website set up where potential customers can find more information, or conveniently shop online. Your website is one of your biggest assets because nowadays, people constantly search for their “wants” and “needs” online. If you want your website to stand out, take the time out to create an impressive design and utilise SEO techniques. Search Engine Optimisation (SEO) will push your website higher on a search engine’s native results, making it more likely to be seen. A great website design will attract attention and ideally tantalize the customer into making a purchase.
Ask for Referrals
Make it a part of your routine to ask satisfied customers for referrals, a testimonial or feedback. Customers will usually be happy to assist (don’t forget to ask if you can use their answers for your website) and likely impressed by your passion for improving your business. You could even organise for an automated e-mail to be sent out with a survey to every client a few days after they have finished using your services or made a purchase. Many types of businesses – from online stores to orthodontists, have adopted this strategy.
Reduce Overheads
When creating a plan for your business, try to identify areas where you can reduce overheads. These could be one-off costs associated with the start off your business, or ongoing costs that will affect you in the future. For example, finding a space that is cheaper to rent or buy (compared to spending big) could save you in the long run. If you’re looking to reduce overheads in the future, one way can be to limit the amount of employee overtime permitted.
Increase Customer Spending
No matter the type of business you own, there is always a way you can encourage customers to spend more. Websites do it by promoting suggested or matching items as a person is browsing. Retail stores do it through a sales person who tries to up and cross sell products. Loyalty programs also encourage customers to spend in order to receive a reward (simultaneously creating “loyal” customers).
Invest in Amazing Employees
One of the greatest assets a business can have is incredible people working for it. It has been proven time and time again that employees who are passionate, feel valued and enjoy the working environment are more likely to work hard and produce great results. Investing in your employees not only means paying them, it also means investing your time in training them, making them feel welcome, building relationships, organising rewards and out-of-work activities to build team moral and collaboration skills. The more you invest in your employees, the more likely they are to follow your lead when it comes to other profit maximising activities, such as creating referrals and increasing customer spending.
Focusing on maximising profits from the very beginning of your business can help you to produce excellent results in the long-term. While it can be easy to get caught up and spend big when you first open up (and so you should if it is absolutely essential – like high quality cooking equipment in a kitchen), there are many ways you can save money. By saving money on initial costs and ongoing costs, you will make a profit faster. Keep these tips in mind and we assure you they will come in handy throughout the life of your business.