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3 Profit Growth Strategies you can Implement in your Business
No matter how established your business is, how financially savvy you are, or how competitive your industry is – every business owner has the capacity to increase profits. Sometimes, the sticking point is knowing where exactly to start, and how to practically implement profit growth strategies to see some real, tangible improvements to your bottom line. Thankfully, taking steps to improve your business’ profits isn’t perhaps as daunting as it may seem – let’s take a look at three to get the ball rolling.
Retain your existing customers
As we covered in a recent article, it’s crucial not to set-and-forget your customers. Strong word of mouth referrals from happy, well-serviced customers helps to bring in new business, often without the same outlay as regular outbound marketing. And if we’re talking about maximising your profit – then how better to do so than free marketing! What’s more, adding value for your previous or lapsed customers can give them the incentives they need to stick around, and perhaps even increase their expenditure with you. Either way, keeping a hold of your existing base of customers and ensuring that they are kept onside means the income you might receive from new customers and leads from your outbound marketing is less likely to be chewed up by how much you’re spending.
Convert more leads to sales
This is a big one – when you think about all the effort and time you put into generating leads for your business, you want to know that you’re converting as many of those into sales as you possibly can. While there are tyre-kickers and time wasters in just about every industry, making the most of those bites you get is crucial to increasing your profit. No matter where these leads are coming from (online, walk-ins, phone calls etc.), the equation is fairly simple – the more you convert, the greater your profit. It’s also important to remember to track your leads and conversions. Simply attracting potential customers and taking what you get leaves you somewhat in the dark in terms of knowing exactly what strategies work for your business. Keep a record of how much you’re spending on your lead generation; how many leads come in; how many convert; and how valuable those conversions are for your business. Over time, take stock of the methods that work and focus on those, and scale back the less-successful ones. Streamlining these processes reduces wasteful spending, and therefore impacts your profit positively.
In a world driven by data and technology, can your business really afford to not get on board? The efficiencies that can be achieved by taking advantage of software programs, devices and other tech innovations are worth their weight in gold if implemented correctly – and as the saying goes: time is money. An example of time-saving technology that is available to just about every business is cloud accounting software, and all of their integrated applications. Software like Xero has several hundred apps that range from receipt maintenance and point of sale, to online payments and management reporting. The best part is – they all link seamlessly into your accounting and bookkeeping functions. The time-saving potential of using these programs means you’ll spend less time on the boring accounting work, and more time providing excellent value to your customers and working on improving your business in other areas.
With all of that to get you started, hopefully now you have a good foundation for improving profits in your business. But of course, that’s not all! There are plenty of other ways to boost your bottom line – and McKinley Plowman’s Business Improvement team is here to help you achieve your goals. Get in touch with us today for a FREE initial consultation, via our website or on 08 9301 2200.
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