A 10-12 Guide To Increasing Your Profitability
Category : Blogs
Anyone who goes networking is there for the same reason – to gain new business. But at 10-12, we like to take the opportunity to share some knowledge within the room and help all of our lovely members and visitors improve the way their business works. This month, following a fantastic talk by Judith of M-Four Productions, the buzz was all around how you can increase the profitability and revenue of your business. Now I know what you’re thinking, increasing profitability is easy – just increase your prices and sell more, right? But while that attitude might help you make more money in the short term, it’s not a long-term strategy for a more profitable business. So instead, try some of these tips for permanently increasing revenue and profit the 10-12 way.
Make It Easy To Buy: One of the easiest ways to increase your profitability is to make it easier for people to buy from you. Look at packaging your services or offering a web shop for products. If it is simple to buy, you will stop losing business.
Monitor Your Sales Activities And Results: Unless you are monitoring what you’re doing and how it performs, you might as well not be doing it. So for every sales activity, track it’s progress and analyse the results at strategic points. This will help you figure out if it’s working or just a waste of time.
Celebrate Success: Motivation is an important element of good teamwork and successful business. So when you close a big sale or hit a profit target, get your team together and celebrate doing well. This will help motivate them to perform better and solidify relationships.
Set Goals And Rewards: Work out where you want to get to in 5 years, and set yourself a series of goals that will help you get there. Break those goals down into actionable points and you will find your yellow brick road to higher profits much easier to walk.
Learn And Develop Yourself: Donald Rumsfeld has a real point when he talked about known knowns, known unknowns and unknown unknowns. The point being, we don’t know what we don’t know, so it’s important to keep trying to learn. By developing yourself and your skills, you will find your productivity and profitability dramatically increase.
Network, Network, Network: Getting your face out there and building up a presence in the market is essential to success. But more than that, everyone you meet will know hundreds of other people – some of who might be your ideal clients, so don’t miss out on the opportunity!
Become Time Efficient: A lot of business owners complain that there aren’t enough hours in the day, when really they just aren’t using their time efficiently. If you start changing the way you work to be more time efficient, you will see a rise in profitable activity without the extra work.
Copy Successful Competitors: Obviously not in every way, because that would be plagiarism and very damaging. But look at their activities and see if you are able to do similar things. For example, if a successful competitor gets a lot of business from shows, look into displaying at one yourself.
Hire An Industry Sector Mentor: A mentor who is familiar with your industry can help you vastly, because they understand how everything works and the best way to get things done. They will be able to tell you where your time is best spent and help you avoid running down unprofitable roads.
Find A Business Coach To Push And Motivate You: As a more general tool, a business coach can help you refine your business model into something slick and successful. They help you trim fat, hone down processes and plan for success, and coupled with an industry mentor they are a force to be reckoned with.
Follow Up Enquires In A Timely Manner: Hundreds of opportunities are lost by businesses every day because they forgot to follow up with customer enquiries. They get busy or just forget, and by the time they remember the customer has moved on to someone who will value their business. Make sure you are following up leads quickly to secure more sales.
Keep Customers Up To Date With What You Do And What You Offer: Even existing customers may not be aware of everything you do. Newsletters are a fantastic way of letting your customers know what’s going on, what offers you have running and how else you can help them. It’s much easier to increase your profits from existing customers than finding new ones – so use them.
Avoid Customer Disputes: – Sometimes it can’t be helped, but where you can, avoid customer disputes. An unhappy customer will tell their story to more people than a happy customer will, and just a handful of dissatisfied customers can ruin your reputation within that circle.
Work ON Your Business Rather Than Work IN Your Business: This is the first thing your business coach will tell you. Schedule some time and take a step back from your business. Stop doing the physical jobs or services you offer to your clients and take some time to work on your business itself – how it runs and what you could do better.
Give Away Things For Free: If there’s one thing people love, it’s free stuff. Whether that’s information, services or even a goodie bag full of free trinkets. People respond well to free advice and tend to remember the people who give them free things.
Contract Work That Drains You Of Your Time to others: Finally, know where your skills lie and what you’re not good at, and outsource the things you don’t want to or can’t do, because these are nothing but a drain on your time. Not good with numbers? Hire and accountant. Awful at marketing? Hire a marketing team and copywriter. Learning to play to your strengths will cut a lot of dead time out your schedule, leaving it free for more profitable activities.
And above all, be your own biggest fan. This is sometimes the most challenging part of being in business for yourself, and one small knock can easily lead into a spiral of self-doubt. Instead, try and remind yourself that you can do whatever you set your mid to, and you are the best at what you do. After all, if you don’t believe it, how can you expect anyone else to? At 10-12 we are a supportive group of women all helping each other to succeed in business. We act as sounding boards, mentors, friends and advisers, creating a strong network of trust and, ultimately, stronger businesses. If you want to be a part of it, all you need to do is come along and see for yourself. Just book on to one of our monthly meetings as a visitor – we can’t wait to meet you!