You may or may not agree, but how much money you make is a good way to keep score in the world of business. That’s just how it is. It’s all about profits, profits and much more profits. However, it isn’t as easy as detailing how you’ll make money in your business plan and then waiting for it to happen, as you may already know.
The reality is that you’ve really got to plug away at your business if you want to see that profit section of your bar chart shoot up faster than a NASA space rocket. Yes, this can be daunting and you can feel entirely lost. That’s why I’ve pulled together a list of tips, tricks and strategies you can start using today that will help boost your profits in the near future..
- Inactive Customers Are A Gold Mine
Every business probably has a database of customers with whom they’ve done business with over the years. You can easily use this database to your advantage. Simply highlight which customers you’ve done business with in the last year and focus on those you haven’t. Call them, email them, write them postcards telling them how much you miss them and how much you want them back. You’ll be amazed at how many reply. They’ve bought from you before, which means that they’re likely to buy from you again.
- The Power Of Referrals
No marketing strategy has more power than that of a referral; it is just one of the fastest and cost-efficient ways of growing your business. Referrals are based on a happy customer tell potential customers why they are so happy. How you do this is up to you. It could be that you have a few lines at the bottom of your invoice that tells customers that you grow through referrals. The other thing you can do is offer a discount for referrals. Give existing customers 10% off their next order when they refer someone and give said referral 10% off their first order. It works.
- Improve Your Financial Department
For many entrepreneurs and business leaders, looking at your financials could be like looking at the hieroglyphics of ancient Egypt – it may not make any sense. That’s why your best bet for boosting your profit margin could be to hire the right people. Speak to a credit control recruiter about who would best suit your needs or try outsourcing your bookkeeping tasks.
- The 30 Days Later Technique
This is one of the oldest and best tricks in the book, and all it requires is the salesperson (or someone in customer services) to call your customer thirty days after they make a purchase. Ask them how the product is working and let them know you are still thinking of them. Encourage them to act as an advocate through referrals and see if you can get them to do business with you again.
- The Lost Art Of Pricing
Keep in mind that your prices can always be reconfigured. As such, evaluating your prices can be another way to maximize your profits. You should strive to offer high value while still turning a healthy profit. Once you get this right, you will find people flock to you because you offer the best value. That’s what people want.