As a small business owner, it can be tricky to compete with larger competitors. But the good news is, you can make a small business profitable with some tweaks you can do both right away and over time.
Source from the Very Best Suppliers
At every level of your business, you must constantly assess performance. Employees, suppliers, and even customers are measurable. If they aren’t contributing to helping your business grow, they are hindering it.
Reliable suppliers are essential because they directly impact the quality of products. While some small businesses turn to 3rd party suppliers and simply rebrand “generic” items, you could consider supplying yourself if you aren’t satisfied with the quality offered from your suppliers.
For example, visionary grocery market owner Alfie Oakes provides his markets mostly with items he produces directly. When you take this approach, you know exactly what you and the customer will get.
Increase Prices by No More than 3%
No one likes price increases, especially customers. But economic conditions mean you can’t keep prices low forever.
A common mistake is wanting to give your customers the best possible price. But unfortunately, you can fall into the trap of being too loyal to clients, and when this happens, you will lose money.
Like everyone else, even competitors, you need to raise prices to cover the cost of business and turn a profit. If you are already at the baseline, increasing prices by just 3% will encourage profitable growth. And customers are likely to stay at these rates.
Make a Small Business Profitable with Branding
Branding is another expense, so you might be hesitant to consider it as part of a profit plan. However, branding has several key factors that contribute to business success:
- Makes an impression on customers
- Develops an instantly recognizable image
- Encourages customers to associate your brand with a specific quality
There are many more reasons to consider branding. But these are the foundation of the concept. Studies have shown that branding can increase revenue by up to 23% per year.
Become a Master of Inventory
A significant business flaw of many owners and managers is overstocking. There are many reasons people do this. Some of them include becoming excited about a trending product or not measuring the exact amount of a product that is required. But overstocking will hurt your business.
For example, stocking too much of a trending product can leave you with something that’s yesterday’s news and won’t shift. Or buying too many perishables means you will have a lot of waste. However, apps like Inventory Now are excellent for managing your stock.
Diversify Marketing Channels
Finally, consider that you can market in many ways for free. Of course, some of the most effective marketing channels are paid, such as PPC, media ads, and search engine marketing. However, free marketing channels include social media, SEO, and email marketing. Social media marketing can be as simple as posting and engaging.
Assuming you have a website, you can use SEO across your site, and it’s more compelling with a blog. You can send email ads to inform customers about deals, so make sure you create an opt-in for your customers.
You can make your small business profitable with some quick adjustments. Consider switching suppliers for a better deal, embrace the power of branding and use free marketing channels.