5 Simple Ways to Help SMEs Increase Their Profits
Do you own a small business?
Or did you just start your dream business?
Whichever it is, we at Pivotino just want to say, congratulations! Keep up the good work! Starting and owning a business can be a rollercoaster ride.
There will be ups and downs, but we all know that the end goal will definitely be worth it!
For any business, the no.1 most important aspect is profit. Without profit, no business will be able to sustain and survive.
This is even more true during this pandemic season. Many small businesses are struggling to stay afloat as their sales and profit plummeted. Fret not!
We at Pivotino are here to share some tips on how Small and Medium Enterprises (SMEs) can increase their profits!
1. Emphasize Cost Reduction
Improve efficiency and save costs.
Yes. It may sound easy, but to actually be able to do it is another whole new story. It is a no-brainer that to improve profit is to reduce costs. One of the most effective ways is to increase the overall efficiency of your business.
For example, if you are a small business selling printed T-shirts, then you should find ways to improve your business operation.
Whether it be through investing in some business tools or good quality machinery or even outsourcing. Make sure that you can use as few resources as possible to produce the same amount of output.
When the overall costs of your business are lowered, then even when your sales are kept the same, your profit will still increase!
So, save costs, improve efficiency, and watch your profit grow!
2. Rethink and Invest in Marketing
To improve profit, you will have to get more sales.
To get more sales, you will need to make sure that your business reaches your target audience and to do that, marketing strategy plays a big role.
Your business can provide the best product or service in the market. However, if it does not reach the right audience, your business will not get noticed and thus you will have little to no sales.
SMEs should always first invest in marketing before anything else. Marketing tools, marketing experts, social media ads, influencer marketing, and so on, are necessary for making your SME business known.
Build strong brand awareness and over time, you will soon reap the benefits of having a strong brand image among your target audience.
3. Provide Great Customer Experience
After getting new customers through effective marketing strategies, it is then crucial to retain your existing customers.
In the long term, it is important for SME businesses to make sure that they build a loyal customer base. This is because the efforts and costs to retain existing customers are much higher compared to attracting new customers.
That is why to increase profits, SMEs will need to ensure that they are able to provide a great customer experience.
Improve your customer workflow through automation, implement effective CRM software, or automate your sales processes, there are many ways you can improve the buying experience of your customers.
“Customer is king”, which is why SMEs are always advised to invest in improving customer satisfaction and experience.
4. Allow Work to be Done Anywhere
With the current situation where all of us are required to work from home with no physical interaction, it is important to keep your business running no matter where you are!
One of the best ways to make sure that work can be done no matter when and where is through the implementation of a Digital Workplace.
This allows SME business owners to not only manage their businesses efficiently but also allow them to serve customers anywhere and anytime! Without Digital Workplace, it can be difficult for SMEs to operate with full force in this new norm.
Missed sales opportunities are losses that could affect the profit of the business. In order to maintain and improve business profit, invest in a Digital Workplace that allows you to serve your customers no matter when and where. Don’t let the pandemic stop you from closing sales!
5. Make Everyone a Salesperson
Being a small business, everyone can and should be a salesperson!
Most of the time, SMEs will have budget limitations that stop them from having a designated sales team.
This is why every single SME employee should be encouraged to sell be rewarded through remuneration.
Even if for SMEs that already have a sales team, employees should still be encouraged to sell because… who wouldn’t want more sales?
With more salespeople, SMEs will then be able to close more sales and gain more profit. When profit grows, more capital can then be reinvested to help bring the business to new heights!
If you are looking for a business tool that helps simplify your sales process, serve your customers better, and provides your teams a Digital Workplace, check us out at Pivotino! It’s FREE!