How You Can Improve Your Profits if You're a Small Business

Published: 19/09/2020 by Kayleigh Walter

Here are some ways you can increase your cut through to ensure you’re always turning a profit rather than losing out.

If you have the option you can always reduce your office space cost if you’re running into problems or you can reduce your members of staff but let's face it, that's always a last resort. No one wants to uproot their office or say goodbye to a member of the team unless it’s absolutely crucial so here are some tips to try and increase your profit without it coming to that.

1.  Revise Product Cost

There is always the potential to increase the cost of your product. If you increase the price of the product and keep the price of production the same, you could see your profits increase however you might see the number of conversions decrease due to the rise in price. Sometimes you can even lower the costs, put some money into a decent advertising campaign could even result in you doubling your conversion rate.

2. Shop around for suppliers and Work Out Deals

Shop around for all of your services, look for the best deals and when you find the best deals, ask if they can give you a better one. This works for your internet suppliers, electric company or even your printers or hosting servers. Shop around so you know you have got the best possible deal allowing you to save money on your expenses.

3. Cut Your Advertising Costs

These days you don’t have to spend a fortune on great advertising to get noticed, you need to start off with a consistent presence on all relevant social media channels and share interesting and relevant content that your intended audience will find interesting. PPC advertising is a good form of marketing as you are only charged when your ad is clicked meaning it's a much more cost-effective way of getting your brand out there compared to other forms of advertising. It's really important to pay close attention to you bidding options when planning your campaign to make sure it focuses on conversions rather than clicks.

You could send out an email every week as a weekly newsletter letting your customers know where you’re at and any latest news. You can post on all social networking sites but usually, the most effective way of advertising is to talk about your business with people, always carry a business card on you so you can hand it out. 

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4. Time is Important

Manage your time correctly, there’s that saying ‘time is money’ and it is true. Every minute you or your colleagues work is costing you money, so make sure they are using their time wisely. Make sure they are spending their time working on correct jobs instead of sneaking out for an extra break twice a day or taking 2 hours for lunch.

5. Repurpose

If you’ve got a client that's asking for a contact form and you did one month ago for a different client, don’t waste your time completely designing it from scratch, duplicate the file and adjust what you need to fit the needs. It will save you money in the long wrong, make templates as you go along so you’ve always got the option to repurpose.

6. Energy Saving Mode

Convert to energy saving light bulbs and make sure if you’re not using it, it’s switched off. Little things like this over time will help you save money on your outgoings. If you need batteries, buy rechargeable batteries so you have a one of expense and can simply keep recharging them. Better yet, if you use the batteries for things such as wireless keyboards and a mouse, why not scrap wireless and buy ones with long cords attached, saving you the expense completely.

7. Go Paper Free

It is always handy to have access to a printer, just in case but emails are just as useful and they will save you money on ink and paper. If you do need a printer in the office, why not go for one that only prints black and white? That way it will last a lot longer and save you lots of money on having to buy colour cartridges.

8. Work from home?

Do you have the option to have your colleagues work from home and communicate online through collaborative technologies such as Skype and Slack? If you have the kind of business that this would work for it could save you thousands on renting out business properties and reduce any potential insurance costs.

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9. Cut Travel Expenses

It is far cheaper these days to have client conversations and client meetings online through Skype rather than having to pay for the petrol to either get you to your destination or to get you to the airport, then you’ve got flights and trains and other travel expenses such as hotels and food. It is much cheaper to have a quick 30-minute video chat then waste a day, day and a half travelling which is costing you money and not really earning you anything.

The sooner you start making some cuts on things you don’t even realise are costing you money, the sooner you will be able to see your profits increase. It really is the simple things that can save you the most money.