Practical Ways a Small Business Can Increase Profits

One of the biggest struggles small business owners will face is trying to turn a profit. Once a profit is finally achieved, the focus will turn to increase those profits and learning the processes to continue turning a profit. 

During these tough times, being able to increase profits might seem impossible. While there will certainly be obstacles that weren’t present before, there will always be ways around them. Even if your small business has been struggling, a certified public accountant can help you make the right decisions towards a better future. 

Profits are what keep your small business growing, and profits you will face many difficult decisions. Knowing how to dig your business out of a hole — or prevent one from forming in the first place — can keep your business in the green indefinitely. 

When dealing with uncertainty and being forced to adapt to the changing times, it’s never a bad idea to return to the basics. To help struggling businesses during the pandemic, I’ve outlined five practical ways a small business can increase profits in the short-term and long-term. 

Identify Under-Performers

When analyzing the products and services you offer, it’s essential to be able to identify the under- and over-performers in your business. Underperformers, of course, will be the products and services that are either creating losses or aren’t benefiting your company as much as you’d hope. 

When an underperformer is identified, you’ll have a decision to either do away with the product or service, or find a way to make it perform better. The key here, however, is identifying it. 

Lead Generation & New Customers

It’s quite common for customers to grow out of their favorite products or services. If you don’t have an effective strategy for bringing in new leads and potential customers, you’ll eventually find your small business struggling to make ends meet. 

Using what you learned when identifying underperformers, you can increase your customer base when and where it’s needed the most. 

Improve Conversion Rates

Getting leads is one thing, but converting them into customers ready to purchase what you have to offer is a completely different story. In fact, many businesses will have no problem gaining interest and exposure, yet can’t seem to bring it all together when it’s time to make a sale. 

There are plenty of ways to improve conversion rates, including a quality marketing strategy, fast responses to questions and comments, a memorable customer experience, and showing that you’re a leader in your industry. 

Whether you’re looking to increase profits due to underperformance or if you’re ready to start expanding, a certified public accountant can give you the advice and guidance you need. With the right professional help, the sky’s the limit for any small business — even during these difficult times. 

Achieving and increasing profits will be an ongoing process for any small business. If you’re looking for further assistance, you can contact me today to go over the options available to you. 

References

York, Mitchell. “6 Simple Ways to Increase Profits For Your Small Business.” The Balance Small Business, The Balance Small Business, 28 Oct. 2019, www.thebalancesmb.com/steps-to-increase-small-business-profits-1200720.