What’s the difference between running a small business and running a successful small business? Good habits. Just like developing good personal habits can help you succeed as an entrepreneur, developing good business habits is equally as important. If your business is not performing as well as you’d like it to, it could be time to consider remodelling. Here’s five good habits to help remodel your small business and set you up for success.
1. Use monthly sales goals
If you want to scale up your profits, then you need to scale down your goals. Focusing on monthly sales goals means you’ll always be focused on weekly sales objectives. And the regular execution of achievable short-term goals is key to reaching the big ones. By tracking your sales goals monthly, you’ll always have a sharp eye on marketing, which is an integral part of the scaffolding that keeps your business afloat. Need help setting attainable goals? Check out our 5 Tips for Setting Goals and Actually Achieving Them.
2. Be frugal
There is always a more efficient way of doing things. The key to maximising your small business profit potential is to constantly be on the lookout for ways to reduce your monthly expenditures. Find ways to save $100 per month. This could be as simple as reducing bank fees, getting rid of club memberships, website apps or email marketing programs. Learn to get comfortable with a bit of dirty work, such as cleaning, routine plumbing, changing light bulbs and other laborious tasks. Being frugal with your money isn’t necessarily about reducing costs, it’s about getting the same or better value for a lower investment. Never pay more than what you need to.
3. Increase revenue
There’s no complex mathematics involved in increasing your revenue. Fundamentally, all it means is that your profit ratio is higher than your costs. On top of reducing expenditures, this requires a tactical sales approach. To generate the maximum value from each customer, you’ll need to upsell additional products and services. For many small business owners, growth relies on word of mouth referrals, which come from focusing on a quality customer experience. It works out to be much cheaper to keep a returning customer than it is to source a new one.
4. Pricing strategy
Being strategic with your pricing is the key to enhancing your profits. Inexperienced small business owners often make the mistake of underselling their products and services to drive a higher volume. However, it’s important to note that precise pricing attracts the buyers who are willing to pay for quality, rather than the bargain-hunters who don’t care for customer service or loyalty. Frequently offering your products or services at a discounted rate not only gives customers unrealistic expectations on price, but it also severely affects your business profit potential.
5. Learn to delegate
Just because you can do everything yourself doesn’t mean that you should. Entrepreneurs have a brilliant ‘can do’ attitude and love to load their plate up with extra helpings of independence. But often, there is a much better use of your time and an even better person for that specific job. This is where learning the art of delegation could save you countless hours (and bundles of money!) Delegating tasks to other people means you can focus on the things that need your attention most. If you want your business to run like a boss – you need to be a boss.
The road to small business success begins with adopting healthy business habits. Your business can only grow and flourish as much as you allow it to, so by learning to maximise your time, profitability, and management skills, what else is there to hold you back?