For businesses, it is always about reducing costs and maximizing profits. Any company can do better by optimizing either end.
Although certain strategies like lead generation and web redesign may increase profits in the long haul, there are also things you can do to unlock your company's profit potential without substantial funding.
It is only a matter of identifying the opportunities for improvement, making the necessary adjustments, and reaping the rewards of your decisions.
Here are five cost-effective strategies that will help you unlock the real profit potential of your business:
1. Develop a Better Pricing Strategy
Adjusting your pricing strategy in favor of a bigger profit margin is rather straightforward, but it is still very effective. However, it is never a simple task since the slightest pricing changes may have drastic effects on conversion rate. You need to research and consider every single variable that gets hit with a simple price change.
Take a look at Starbucks, for example. A one percent increase price increase in certain beverages led to a surprising 11 percent increase in profits. How did they do it? They focused on the right customers, the right market, product differentiation, and efficient price communication. Instead of raising the price of everything, they only focused on specific drinks, sizes, and locations. In doing so, they took advantage of high consumer perception and demand for specific beverages.
2. Use Self-Storage Creatively
Renting office and storage spaces take a huge chunk of your company's monthly budget. Sure, established companies can acquire more space without batting an eyelash, but for SMEs and startups, managing space can be a headache. What if you need additional storage space for inventory? What if you are just starting out and need space, at least temporarily, to do business? What if your current setup is only draining your cash fast and is unsustainable in the long run?
If the questions above apply to you, then self-storage units just might be the perfect solution. Self-storage companies are flexible, affordable, and can be customized to suit your needs. It can even be turned into your primary office with the right furniture. Just remember to look for insured units from reputable self-storage companies. This should offer you the much-needed peace of mind, especially if you are using self-storage for valuable business assets.
Related Article: Real Talk: Is Franchising As Profitable As You Think?
3. Outsource Smartly
Outsourcing is not a new concept in today’s digitally connected world. Let’s face it, long-term employment is costly. It also limits your choices when it comes to filling important positions in your company. Outsourcing, on the other hand, helps you tap into the global pool of talent to mobilize your business.
Still, you should pay attention to the possible downsides of outsourcing. For example, accountability for each remote worker is not easy to secure without a seamless tracking and communication platform. However, if you manage to get ahold of reliable and skilled professionals, then you got yourself a highly efficient team that will maximize your profits in the long run.
Digital marketing plays a huge role in boosting the profit potential of your business. However, it involves several areas such as email marketing, social media, SEO, and paid advertising that require your attention. That said, it is easy to become confused with the array of tools, services, and platforms you need to get each done.
With automation, you can establish a streamlined "system" that accomplishes your digital marketing goals in a phase-wise manner. For example, with a single scheduling platform, the content you publish on your blog can be automatically shared through social media and your mailing list. An autoresponder tool, on the other hand, automatically sends prebuilt emails based on triggers such as a new follower, an abandoned cart, or a direct inquiry.
Simply put, automation eases the load of maintaining your marketing processes and gives you more time for other aspects of your business. Well-optimized automation also saves time and maximizes efficiency, making sure you are at your peak earning potential.
5. Increase Productivity
Finally, a company's success depends on the amount of effort dedicated to each and every person. There are a ton of ways for you to boost everyone’s productivity, but it all boils down to motivation, organization, and a more efficient work environment.
For example, make sure your team has a clear list of priorities and keep it short. Assess the tasks at hand and organize them according to the urgency and potential gains. Also, learn to delegate smartly and consider the strengths of every member. For every job, look for the most qualified person who can do it fast and reliably.
Meetings can also be made more efficient using online collaboration and communication tools. Simple apps like Skype, Google Drive, and Evernote can help you establish a virtual environment where team members can brainstorm ideas, share files, and provide support to each other. When it comes to the physical workplace, you can allow your employees to bring personalized items to uplift their moods. Also, let in natural light and fresh air to help de-stress the environment.
Related Article: 10 Money Saving Tech Tips for Non-Profit Organizations
The amount of money a company makes is a clear measure of success. With firm decisions in the little things, you can ensure the peak performance of your organization and propel your enterprise forward.