Category: Business Growth

How to Set Ambitious Yet Realistic Goals

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Adjusting your goals and expectations to what’s within your possibilities will ensure your success. Not to mention, it can help you avoid unrealistic planning frustrations.

Having reasonable goals can be a driving force behind individual, team, and company success. If you precisely determine what you’re aiming at and do it early on, your efforts will have a clear direction and appear more meaningful.

However, setting goals isn’t without its challenges – poor orientation, succumbing to perfectionism, and lack of motivation are among those that are quite detrimental. 

That’s why we’ve compiled a list of steps that will help you determine and set optimal goals while avoiding the common pitfalls.

Step #1. Back Your Goals Up With Solid Planning

The importance of thorough planning can’t be overstated.

A goal without a plan is, in essence, just an abstract idea you can’t act on. That’s why the first thing you should think about is exactly how you’ll achieve your goal.

The most effective way to make a plan is to start with the big picture in mind and go more and more into details.

Start with a general road map – setting a certain finish line and marking every bump and turn down the road. Then take a look at the individual stages of the journey and define the challenges you could encounter.

Keep in mind that this is a crucial step – if there are too many obstacles requiring more energy and resources than you can expend, you will do well to reconsider your main goal immediately.

Finally, once you know where you’re going and how you’ll get there, start preparing contingencies.

A good plan will take you a long way, but it would be wise to expect something to go sideways. Prepare to adjust your tactics accordingly.

Step #2. Be Clear and Specific

Setting goals includes envisioning a certain point in the future. However, it would be best if you didn’t stop at a general, low-resolution picture.

You must define all of the details of what you want to achieve.

For instance, aiming to increase your company’s sales is a low-resolution goal. It could be a good starting point, but if you want to ensure you’re progressing in the right direction, you should consider the specifics.

Exactly how much of an increase would you like to see in your sales? How would you want your business to change before and after you’ve reached that goal? Would you be willing to make sacrifices to get there and what would that entail?

There’s plenty of details to flesh out when setting your goals. If you do it right, all your efforts will become focused on the specific necessary tasks and the progress will become apparent.

Step #3. Establish Milestones

A common mistake in planning goals is that people tend to aim for the grandest achievement, disregarding the smaller but vital victories.

This approach can become draining very soon – you might be overwhelmed by how unattainable the set endpoint seems. To avoid the fatigue and discouragement, make sure to have several smaller goals set as milestones.

Reaching the milestones will give you that precious sense of achievement and progress and motivate you to keep going.

Good Goals Are the Way to Success

Aiming for something you can realistically achieve and having a good plan of getting there will set you on the right path. 

When you’re convinced your goals are the right ones, pursue them with determination. Great results will follow.

The Five Traits of Successful Entrepreneurs

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About 20% of businesses fail during their first year. So which traits should an entrepreneur have to become successful in a highly competitive environment?

Starting a business isn’t easy, especially in the modern environment that favours sound, long-lasting practices and a severe loss-aversion mentality. 

While not everyone is born to be an entrepreneur, there are skills one can learn to jumpstart a business venture in a competitive industry. And even be successful at it.

It’s important to note that some traits can’t be learned and are what separates a good entrepreneur from the best. The list of traits found here includes both intrinsic and trainable skills.

1. Inventiveness

One of the key features of successful entrepreneurs is their ability to come up with new ideas and expand on existing features. That’s why most entrepreneurs start their business with an idea that deviates from and improves upon the current norm.

While it’s almost impossible to teach someone how to be inventive, all people possess virtually unlimited imagination and potential. Tapping into that can lead to exciting results.

2. Confidence

One of the crucial parts of a successful start-up is the pitch. A good entrepreneur needs to have confidence both in themselves and their idea. That confidence is what will sell the start-up to potential investors and allow the business to begin operations.

Entrepreneurs will face rejection along the way, and only those who remain confident enough to keep going will bounce back and thrive among the competition.

3. Work Ethic

The term ‘passion’ is often thrown around as a desirable trait, but it would be more proper to call it work ethic. 

While an entrepreneur will enjoy doing what they created, a proper work ethic is what truly matters.

An entrepreneur needs to put long hours into their business to take it off the ground. That won’t be possible if they don’t love their work or have a developed work ethic to sustain it.

4. Money Management

One of the critical reasons start-ups fail over their first few years is the futile acquisition of capital. This isn’t so surprising, seeing as banks are unlikely to provide large loans. 

Other methods of raising capital, such as crowdfunding or investing, often depend on tangential skills like the ability to persuade people about the idea.

While having a good idea is the key for a start-up, obtaining and managing the capital required to make it into a reality is what separates a successful start-up from a failed one.

5. Knowing Market Needs

While not a trait per se, knowing that an idea for a start-up has real market value and need is what gets a start-up off the ground. 

The ability to develop and market an idea into an attractive product relies on more skills than one, but they all need to combine to deliver to the masses.

According to Forbes, most start-ups fail due to a lack of market need. Therefore, identifying whether a novel idea is useful and adjusting it to cater to the audience should be one of the top priorities.

Learning What It Takes to Succeed

Thankfully, most of the traits of a successful entrepreneur are learnable. For all others, there are always people who can help out and make up for personal shortcomings. 

Teamwork makes the dream work, after all.

How to Make Good Use of Business Downtime

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Busy business periods bring their own challenges, but “downtime” is often much more worrying. However, it can actually be a great opportunity to give your business some TLC, focus on strategy and make overdue improvements. Let’s take a look at how to make the best use of business downtime so that you emerge stronger than ever.

Focus On Your Digital Presence

Your website is one of the biggest tools in your business arsenal. It’s where people go to find out more about you and it’s how they get in touch with you if they want to buy something or ask a question. So, during downtime, take some time to focus on your  website and create a better user experience.

Don’t forget about social media, either.  Your customers are online looking for information and engaging with brands. Make sure that you’re posting regularly to your social media channels and staying in touch with your audience. 

Downtime is also a great opportunity to devise a content strategy and prepare posts months in advance. Social media marketing is an important task but when you have a lot of urgent business to attend to, it often gets brushed aside. Use periods of downtime to rectify this and upgrade your online presence.

Networking

Networking is a great way to get new business and learn from other people. It can also be difficult if you’re juggling your day job with networking events, so downtime could be a good opportunity to catch up. Business is all about relationships, so take this time to engage with your contacts and set yourself up for future opportunities.

Check in with Clients

You may not be able to check in with your clients when you’re busy, so use downtime to drop them a quick email or phone call to see how they’re doing and let them know that you haven’t forgotten about them. This will keep the relationship strong and leave the door open for future work.

Update Systems And Processes

Doing things manually or with out-of-date systems can be a huge drain on your time and energy. During downtime, why not take the opportunity to upgrade some of your systems? Replacing outdated software or updating business processes can also save you a lot of money in the long term because it makes things easier and more efficient for everyone involved. This will prevent you from wasting resources and free up more time to focus on other areas that need attention. 

Clean Up Your Finances

If your business isn’t doing well, you might be tempted to ignore the numbers and hope that things will get better on their own. However, it’s important to take a step back and make sure your finances are in order because this could help prevent problems later on when there is less time for emergency fixes. Whether you need to implement better bookkeeping practices, implement better cash flow management systems or shop around with vendors, now is the time to do it. 

Get Organized And Invest In Storage

Are your office supplies filed away safely or are they just stacked up on a desk somewhere? Are you storing important documents incorrectly which means that you could lose them if there’s ever an emergency? Downtime is the time to get organized, clean things up and digitise your files. This will save you time and money in the future.

Conclusion

It can be difficult to keep up with the demands of running a business. That’s why it’s so important for owners and managers to plan ahead for periods when they have less work. These quiet times represent a fantastic opportunity to take care of items that you might otherwise push off and prepare your business for future success. With a little bit of foresight, downtime can prove to be a valuable opportunity to make some much-needed improvements to your organisation. 

Accounting and Bookkeeping Basics that Every New Solopreneur Needs to Know

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Starting a new business venture by yourself is incredibly exciting, but it can be daunting, too – especially when it comes to accounting and taxes. The sooner you begin to learn about accounting, the less likely you are to run into trouble, which is why we’ve put together a basic accounting guide for new sole traders, contractors and freelancers who need a nudge in the right direction. 

Separate Business and Personal Bank Accounts

They say you shouldn’t miss business with pleasure and this is especially true when it comes to banking. It’s important to create a separate bank account for your business expenses and transactions, for several reasons.

Firstly, this creates a log of your business-related transactions. This saves you from having to comb over your records and try to remember whether each purchase was business-related or not when tax season rolls around. As a consequence, you’re less likely to miss out on tax deductions and end up paying more than necessary. 

A separate business bank account makes it easier to monitor your cash flow situation and understand how much you can afford to spend. It also helps to maintain business credibility, which is important when seeking financing. 

It’s also worth arranging a business credit card. Business credit cards typically have a higher limit than personal ones, which is useful since business expenses tend to be higher, too. This will help you to smooth out any cash flow issues you face without putting your personal credit score at risk. 

Invoice Management 

Invoice management is a simple but crucial part of effective cash flow management. Not only is it important to send invoices on time, with a clear itemised bill and the correct payment information, but you also need to be proactive about chasing up late paying clients, too. 

Track Expenses

Track everything from client lunches and printer ink to office rent and software subscriptions. Carefully tracking your business expenses keeps your financial records crystal clear and helps you to maximise your tax deductions. As well as using a business bank account or credit card to keep your records, it’s also a good idea to use a cloud-based accounting software so that you can upload and organise your receipts with ease.

Go Paperless

Of course, you will need to keep hard copies of certain important documents but going as paperless as possible is a great way to stay organised and make accounting easier. There’s really no need to store everything in a shoebox anymore. 

Accounting software can do everything from generate invoices to storing receipts, eliminating your need for an overflowing filing cabinet. 

Electronic payments are also much faster to process than old-fashioned cheques, which is great news for your cash flow. 

Don’t Forget About Taxes

Employees with regular paychecks tend to spend a fairly minimal amount of time thinking about tax, but as a solopreneur you need to be much more proactive. For every invoice payment you receive, you need to set aside anywhere between 15-30% of that sum, depending on your annual earnings and business type. It’s important to be aware of this and budget accordingly so that you don’t receive a nasty surprise when the tax year ends. 

Summary 

Accounting and bookkeeping doesn’t have to be difficult. By staying organised, being proactive and taking a common-sense approach, you can overcome many of the common pitfalls experienced by new solopreneurs. 

Being proactive about expense tracking and invoice management will give you a huge leg-up. By separating your personal and business accounts and using accounting software, keeping your records in order becomes far easier. Trust us, this will save you many headaches and sleepless nights!

4 Ways to Improve the Financial Health of Your Small Business

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A business health check is never a bad idea and even if you’re doing okay, there are always ways to improve. It’s important to closely monitor your business’ “vital signs” and look for ways to fine-tune your processes to ensure that it continues to thrive. Let’s take a look at four ways to boost the financial health of your small business.

1. Identify New Streams of Revenue

Markets can shift rapidly, which means you should always keep an eye on how the landscape is evolving and look for new opportunities to capitalise upon. Identifying new streams of revenue can help to future-proof your business and increase your profits. Take a look at your current sources of revenue and identify which ones may deserve more of your attention. You should also give your employees a chance to offer their ideas on new ways to generate income.

If you’re struggling for inspiration, why not examine business owners who were forced to rapidly pivot during the covid-19 pandemic. Event photographers, for example, began selling digital prints and online courses. Restaurants switched to takeaway only and started offering special delivery packages for occasions such as Christmas and Valentine’s Day to boost sales.

2. Increase Profitability 

Profitability is key to the longevity of a business and an important indicator of success. Therefore, you should always be thinking about ways to boost your margins. Adding revenue through new sources of income, raising your prices or increasing average customer spend is one way to do this. 

However, it’s important to keep your costs as low as possible, too. Regularly review and remove expenses that don’t add value to your business or customer. Consider eliminating products or services that do not generate significant revenue or profit so that you can focus on the ones that really make you money.

Boosting your customer retention rate is another important way to increase profitability. Research shows that increasing customer retention by 5% can boost your profits by 25-95% because not only is retention significantly cheaper than acquisition, repeat customers also spend more.

3. Manage Cash Flow 

Profitability is important, but cash flow matters just as much so don’t sacrifice one in favour of the other. Plenty of profitable businesses have gone bankrupt because their assets were tied up and they ran out of cash. It’s vital that you stay on top of your monthly incomings and outgoings to ensure that your business stays flush with funds.

Insight is the key to effective cash flow management. You must carefully keep track of all the money that enters and leaves your business. It’s important that you understand your days cash on hand – namely, the number of days you have until cash runs out. Ideally, you should have 45 days or more.

You can improve cash flow management by:

  • Staying on top of your invoices
  • Shortening payment cycles
  • Introducing late payment fees 
  • Offering bulk or annual discounts 
  • Using a business credit card 
  • Carefully managing inventory
  • Creating a cash reserve that you can dip into in case of emergency

4. Increase Productivity 

Increasing productivity means that you can do more without spending more, and thus improve profitability. Research by Gallup found that highly engaged teams show 21% greater productivity, so it’s important to motivate your staff and ensure that they are working at their best. 

89% of HR leaders agree that regular feedback is crucial to building a successful team, so prioritise regular check-ins and make your employees feel heard. Offering flexible working options can also be helpful to increase productivity as research shows that this makes staff feel appreciated. AirTasker also found that flexible workers put in an average of 1.4 extra days per month than traditional employees, which adds up to over 16 days, or three weeks, per year. 

Summary 

However well your business is doing, there are always ways to improve. Just as it’s important to check in with your employees regularly, it’s also important to schedule time to review your revenue, profitability, cash flow and productivity to eliminate potential problems and identify areas for improvement. This will ensure that your business stays financially healthy and continues to thrive for years to come.

6 Strategies to Survive a Cash Flow Slump

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In business, cash flow is just as important as profit. If your business is a car, then cash is the fuel in your engine; when it runs out, you’ll stop moving. A study by the U.S. Bank found that 82% of failed businesses cited cash flow problems as one of the main reasons behind their collapse. Therefore, it’s essential that you prepare for cash flow problems and understand how to survive a slump. 

1) Annual Discounts 

When cash is tight, it’s worth looking for ways to get a significant inflow into your business. One way to do this is to offer your customers an attractive discount for an up-front annual payment. For example, you could offer them one-month free when they pay a year in advance. This will give you a big cash injection that can help you to get moving again. 

2) Line of Credit 

A line of credit is essentially a hybrid between a credit card and a bank loan. This style of borrowing has many benefits and can be a godsend when you run into cash flow problems.

Much like a credit card, a line of credit is a preset amount of money that a bank or credit union has agreed to lend you. You don’t actually have to use it until you need it. You can borrow money at any time and pay it back either immediately or in increments. A line of credit usually has a higher limit than a business credit card. As with a bank loan, interest is charged as soon as money is borrowed. 

The flexibility of a line of credit makes it a great solution for smoothing over cash flow issues. The best time to organise a line of credit is when your company is in good financial health because this puts you in a better position to negotiate good rates and terms. 

3) Cut Down on Unnecessary Expenses 

When cash is tight, it’s worth reviewing your bank statement and looking at which expenses you can eliminate. Getting rid of costs that don’t drive value can really improve your situation. For example, you may be paying monthly software subscriptions, when the free version is sufficient for your needs. You also may still be forking out for forgotten-about products that you no longer use, or overpriced services when you may be able to get a better deal elsewhere. 

4) Shorten Payment Cycles 

Many businesses offer 30, 45 or 60 day payment cycles because that is simply the way things have always been done. However, in the digital age, such long payment cycles are no longer necessary. Nowadays, you can send your invoices via email so that your clients receive them instantly, and electronic payments mean that you no longer have to wait multiple days for cheques to process. Shortening your payment cycles means that cash lands in your bank account faster, and can thus put an end to a cash flow slump. 

5) Reach out to Existing Customers 

If your cash flow slump is due to a shortage of sales, it’s worth re-engaging your existing customers. More often than not, customers don’t stop buying from you due to dissatisfaction; they simply become disengaged because you fail to nurture them adequately. It is dramatically cheaper to retain an existing customer than to acquire a new one, so during a cash flow slump you should focus your marketing efforts on your existing customers. Be sure to nurture them via social media and email newsletters, and offer them an attractive deal or discount to re-engage them.

6) Stay Motivated 

Last but not least, it’s vital that you stay motivated during a cash flow slump – now is the time to work harder than ever. Surviving a cash flow slump is about creativity, communication and hard work. Although slumps can be demoralising, it’s vital that you stay motivated and work to use the above strategies to solve your money problems so that your business stays afloat. 

7 Things That Every Small Business Owner Should Be Doing

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When you’re running a small business, it’s easy to get so preoccupied by day-to-day activities and forget to step back and see the bigger picture. However, it’s important to pause and take a good look at how your business is really faring. It’s also necessary to make sure that you’re looking after yourself, so that you can show up as the best version of you. Let’s take a look at seven things that every small business owner should be doing to avoid ensure success.

1) Building Relationships

Building relationships is an essential step in creating a successful business. As the saying goes, it’s not what you know, it’s who you know that counts. Networking not only increases your visibility, it also opens many new doors. Each new person you talk to could be someone in need of your help, and if not, they might connect you to someone else who does. Networking will also help you find inspiration, learning opportunities and possible joint venture partnerships.

In-person networking is important which is why, when possible, you should try to attend events where you will encounter many members of your target audience. However, you should also strive to build relationships online each and every day by showing up on social media, reaching out to business contacts and checking in with prospects.

2) Saying “Thank You”

A little gratitude goes a long way. Whether you’re thanking your staff or your customers, a little thank you note or appreciative email here and there is a great way to make the people around you feel valued and satisfied. This will encourage customers to come back and motivate your staff to keep up the good work.

3) Asking “Who Can Help?”

Business owners often feel as though they need to handle everything themselves, but asking for help, whether that means hiring a mentor or a new member of staff, is one of the best things that you can do. 

Hiring a coach or advisor will allow you to fast track your journey and save you from a lot of trial and error. It’s important to have someone who can set an example, show you the way forward and act as a confidant with whom you can share your worries and woes.

Meanwhile, hiring a team member or freelancer to handle certain responsibilities frees up your time to focus on strategy and customer generation, rather than getting bogged down with lower value tasks.  

4) Investing in Personal Growth 

True entrepreneurs are always hungry to learn. As a business owner, you should always be striving to increase your knowledge and show up as the best possible version of yourself. There’s a reason Warren Buffet claims to spend 80% of his day reading. 

Investing in your own personal growth allows you to stay one step ahead of the competition and reduces the risk that your business will become outdated. 

5) Nurturing Leads 

Just because a prospect says “no” right now doesn’t mean that they’ll say “no” forever. For many, it just means that it’s not quite the right time for them to buy. You should endeavour to stay in touch with your leads and nurture them through email and content marketing. Be relentless about staying at the forefront of their mind so that when they do become ready to buy, you are sat right in front of them, positioned as the obvious choice.

6) Nurturing Existing Customers

A good customer retention rate is essential to a profitable business, so it’s in your best interests to pay attention to your existing customers and keep them coming back for more. 

Email newsletters, special promotions and loyalty programs are all effective ways of encouraging your existing customers to buy from you again.

7) Content Marketing

Content marketing is a powerful form of inbound marketing, and more and more business owners are catching on. Creating helpful and informative content for your target audience increases your visibility and thus improves the chances that new customers will find you as they seek answers to their questions. Furthermore, it demonstrates your knowledge and expertise which encourages your audience to trust you. It’s also more cost-effective than traditional forms of advertising, although it can take longer to build your audience and gain traction. With consistency, however, your efforts will surely pay off.

Summary 

As a small business owner it can often be difficult to know which way to turn. However, by making a habit of the actions listed above, you will be well on your way to building a thriving business with a steady stream of leads and plenty of loyal customers.

Measure business success with KPIs

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When it comes to meeting your business goals, it pays to have an effective way to measure your success. Key Performance Indicators (KPIs) measure the important features of your business. 

No matter what business you run, KPIs help you to measure specific aspects of your company’s performance. Exactly what you measure and how you measure it will be dependant on your business and your long term goals. The data will give you a picture over time and allow you to make informed decisions. 

There are a number of ways to ensure you are capturing data effectively and then sharing it with the right people. The data must be relevant, timely and clearly presented. 

We can help you choose the KPIs that are most relevant and useful for your business and then use these to inform the next steps.

How to Delegate Effectively as You Scale Your Small Business

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During the earliest days of running your small business, you might find that you’re able to handle most, or even all, of the tasks yourself. However, as your business grows, the demands on you as a business owner increase and you need to stop juggling before you drop the ball. It’s time to entrust a greater share of work to team members, contractors or freelancers so that you can focus on the tasks that matter and continue to grow your business.

“But I Hate Delegating!”

Many business owners initially feel uncomfortable with delegating tasks. This is often due to a fear of giving up control. Often, entrepreneurs subscribe to that old saying “if you want something done, do it yourself.” Unfortunately, this doesn’t really apply in the context of a growing business. Do you think Bill Gates handles Microsoft’s payroll himself? 

If you’re reluctant to delegate a certain task, it’s important to weigh up whether or not it’s really a worthwhile use of your time. As a business owner, your time is a valuable resource so don’t waste it on a task that someone else could easily handle. 

As a business owner, you understandably feel that you know your business best. Perhaps you just don’t want to take the time to teach a team member the ropes of a task you have been handling yourself thus far. However, taking the time to do so will save you a lot of time and energy in the future. 

1) Communicate Clearly 

Communication is the key to effective delegation. You should explain to your employees:

  • Why you’re assigning them a task 
  • Exactly what is involved in the task 
  • What the goals of the task are
  • What your expectations are 
  • Who they can ask for help and support 

You should give your team members a chance to ask questions and raise any concerns that they have about handling a task. Starting off on the same page is the key to successful delegation.

2) Provide Tools and Resources

When delegating tasks to team members, it’s important to set them up for success by equipping them with the tools and resources they need. Consider their levels of ability and experience. If this is a team member’s first time handling a certain type of project, it may be helpful to provide them with past examples or ask another staff member to oversee their progress.

3) Use the MOCHA Model

The MOCHA model is a great way to outline which responsibilities belong to each team member with regards to the completion of a project.

Manager: This is you. It’s your job to assign tasks to the right people and hold them accountable. You also need to provide the right resources, review progress and intervene if there are any problems.

Owner: The owner is the person to whom you delegate the project. There should only be one owner of a project. If they need additional support, they can use a Helper (see below.)

Consulted: This is another team member who is not responsible for the project but can offer the Owner advice and input.

Helper: One or multiple team members who help the Owner with certain tasks.

Approver: The person who must approve all decisions before they are finalised. This could be the Manager or a director or board chair.

4) Check In Regularly

Don’t disappear as soon as you have delegated a project. Make sure that your team members know you are available to support them, but don’t bank on them coming to you, either. Check in from time to time and provide feedback if you feel it is necessary. However, it is still important that you trust your employees and resist the temptation to micromanage them.  

After the completion as a project, it’s a good idea to schedule a debrief. This will allow you to offer feedback and constructive criticism to the project owner and discuss ways in which you can help them to grow. 

Conclusion: The Benefits of Delegation

Delegation not only benefits you, but your team members too. It improves company-wide communication, builds trust and makes your employees feel valued. It also gives your staff an opportunity to learn new skills and advance their careers. This helps to boost morale and employee satisfaction whilst allowing you to scale your business and focus on the things that matter most. 

4 Powerful Strategies to Boost Your Bottom Line

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In business, it’s not about the money you make but the money you take. Generating £100,000 in sales sounds great, but if it costs you £90,000 to get there then it’s not quite the impressive figure it initially seems. In order to hang onto more of your hard-earned money, you need to focus not only on increasing your revenue but also on spending less in order to do so. Controlling costs, being resourceful and working smarter, not harder, is the secret to increasing your profits. Let’s take a look at four strategies you can employ to boost profitability for your small business. 

Increase Employee Productivity 

Research by GoRemotely shows that productive employees equate to a 21% increase in profits. Therefore, as a business owner, it is in your best interests to ensure that you are getting the most out of your staff. 

One way to increase staff productivity is simply to ensure that your employees are happy. A study by Oxford University found that happy employees are, on average, 13% more productive. On top of this, a study by Zistemo found that employees who are recognised for their work and receive regular encouragement tend to be more satisfied with their jobs. 

Allowing and encouraging remote working can also increase employee productivity, too. When the world began working remotely in March and April 2020 due to the coronavirus pandemic, Prodoscore reported a 47% increase in productivity compared to the previous year. 

It’s worth investing in comprehensive training programs to ensure that your employees are skilled at their jobs and working to the best of their ability. You may also want to consider productivity tracking software to identify your top-performing employees and highlight the ones who need extra support.

Smarter Marketing 

It’s important to invest extra effort into marketing, but this doesn’t mean pouring money into fancy campaigns. Instead of throwing mud at a wall, you need to closely examine which marketing practices generate the biggest return on investment and then hone in on these strategies. 

Don’t just look at growing your sales, either. It’s also important to find more cost-effective ways to achieve customer acquisition. This means that your costs will go down as your sales go up, resulting in bigger profits. 

Cut Down Overhead Costs

In order to boost profitability you need to find ways to reduce your overhead costs without impacting productivity. It’s a good idea to take advantage of the recent surge in remote working to keep costs low whilst increasing employee productivity. Encouraging your staff to telecommute even just a few days per week could significantly reduce your utility bills and permit you to relocate to a smaller and more affordable office. 

It’s also important to review your subscriptions regularly and cancel those which are not serving your business. You should also shop around and seek out new quotes for expenses such as insurance, internet and office supplies to ensure that you’re getting the best price. Suppliers seldom reward customer loyalty and switching could save you thousands. 

Tighten Credit Terms 

Late-paying customers are a nightmare for small businesses. When customers are frequently late to pay, you may find yourself dealing with costly cash flow problems and mounting debts. In order to combat this problem, it’s worth reconsidering your collection procedures and credit terms. For example, introducing a late fee is likely to encourage your customers to pay you on time – and if not, you will at least be compensated for the costs incurred and inconveniences caused. It’s also worth looking at shortening payment cycles. In the age of instant invoicing and digital payments, 30, 60 or 90 day payment cycles are often overly generous. 

Summary

Boosting your bottom line isn’t about overzealously slashing costs and chaining yourself to your desk. By employing the above strategies, you can see your costs go down without damaging productivity or staff morale. Investing in staff training can see a huge increase in productivity that can really power your organisation forward. Meanwhile, taking simple steps to ensure that you get paid on time can save you from a myriad of cash flow problems. Narrowing the focus of your marketing efforts can also save you money and generate a much greater ROI. Together, these strategies will help you to create a more profitable business and set you up for financial success.