If you’ve just launched a business you’ve likely got money on your mind. Here are six ways to minimize your costs and maximise profits in a new business.
Once you have your products organized and your business launched it’s essential to get out the word. The most effective way to increase your profits is to ensure that people know you exist! When you’re just getting started you should spend up to 80% of your time making sales presentations, working on marketing plans and connecting with customers.
People ask their friends for recommendations all the time. That’s why it’s important to ask everyone you know for referrals. Create a list of the services you offer and send it to your contacts. Chances are many of them will know someone who’s looking for exactly what you sell! Referrals can give you free, fast sales.
Customers often put off paying invoices for as long as possible. If you sell services it’s important that you collect those invoices as soon as possible; it could be the difference between failing and succeeding. There are many tactics you can use to motivate customers to pay on time. For instance, you could incentivise early payment and hold onto projects until they’ve been paid for
Don’t let poor accounting kill your business. One of your top priorities as a small business should be to either purchase accounting software or hire an accountant. These will help you identify and compare expenses, track income and keep an eye on cash flow. Poor money management will kill an otherwise potentially successful business!
Your customers will make or break your business. It’s important to make sure that the message they’re spreading about you is a positive one! After each sale take the time to seek feedback through emails, survey requests or phone calls. Using feedback from your customers constantly make adjustments to your business so that it improves.
Create a list of the services you offer and send it to your contacts. Chances are many of them will know someone who’s looking for exactly what you sell! Referrals can give you free, fast sales.Click To Tweet
Setting up a new business is an exciting time, so it can be tempting to go out and buy all the gear and equipment you’d like to have. But purchasing equipment can be a significant expense, and it’s often more economic to rent. Purchased equipment will also depreciate over time, so have a conversation with your tax preparer before you make any big decisions.
You might have heard misleading statistics such as the claim that 90% of businesses fail in the first year. They’re not true: studies show that 50% of businesses will survive for at least five years.
You’ve got as good a chance as anyone, so follow these tips and stick to it.
- Lena Klein