You too can do it
Many people have done it and you too can, and because of the internet, many small business can now compete with the larger businesses and achieve significant success.
So how exactly can your small business compete the the larger, more established businesses out there that have all the resources to crush any competitor?
1. Stay Flexible
In business, it is imperative to know that inflexibility is a major deterrent to business success. When entrepreneurs start a new business they usually don’t hit the jackpot on the first try and have to tweak the business again and again to find that perfect spot for the business to become successful in the long run.
Never try to stick to something that doesn’t work because you like it. If it does not pan out the way you would like, dump it and go for something different. If that does work also, dump it and go for another thing.
Keep on moving until you your business becomes successful which means you have to persevere until you hit payday.
2. Offer things people buy
It is good to be the first in the market with a new product because if everything goes as planned, you will hit pay day hard. But it is also very difficult to do as you would have to convince people that your product is good for your customers.
This can take a lot of time, marketing and resources to finally convince customers to try your products and services.
When you offer what people are already looking for, it makes your marketing easier and all you would need to do is look for where the people looking for your products hang out and tell them about your product and services in the form of marketing and advertising.
You would not have to hard sell them into buying into the idea of your new business.
3. Find ways to reduce cost
For new entrepreneurs that don’t know how to handle finances well, keeping cost down is not usually on their mind as they want to pour as much money into the business thinking the more they spend the more they make.
Spending so much on a business without worry about cash flow is what already established businesses do mainly because they want to maintain their brand awareness and not because they want to get more customers.
How to reduce cost in your business
- Never pay retail for office furniture if you don’t work at home
- Learn to use leverage
- Pay your vendors up front
- Narrow your focus
- Use the power of technology
4. Make sure there is cash flow
Cash flow is the lifeblood of any business, and without cash flow your business will suffer. Even non-profit organisations also need cash flow to stay in business. This is why marketing is very important in any business.
There are ways to get your cash flow in if you are in a service business. You can ask clients to pay an initial deposit up front and pay the rest on delivery.
You can make your business a subscription based business where your customers pay monthly or yearly.
5. Let your main focus be on marketing and sales
Focus very well on your sales and marketing techniques as that is what will bring in your customers which will in turn bring in cash flow and make your business run smoothly.
You will have to find a way to get leads from the very beginning, especially if you don’t have any money to start with and are operating on a shoestring budget.
Create marketing sales funnel that have been proven to work well. Take a look at this sales funnel by Yaro Starak and see what I mean. This funnel is for bloggers but you can tweak it to suit your business needs. You can also check out his “how to set-up your sales funnel” and I think it will give you a rough idea on how to set up your own sales funnel in your business.
6. Test all your strategies
In every business you have to test and measure your success of profits or marketing to see what works and what doesn’t. And also to see what works better than the other.
You should not keep throwing money away thousands of dollars on advertising campaigns that does not bring in any new customers because you don’t bother to test.
7. Add value
The only way that your business can make any profits is if you add value to people’s lives and also to the product or service you offer.
Instead of discounting your products or service, create added value propositions on all your products.
It doesn’t matter what industry you are in, don’t discount your prices and only look to add value to your products and services and your customers will help you out with word-of-mouth advertising.
Are you ready to start your own business?
If your answer is yes, or even if you have already started your own small business, you can use what you have learnt here today to increase your profit margins.
If what you have read here has given you an idea or insight on how to take your currently struggling business to the next level of profitability, let us know in the comment section below.