Running is a business is quite like running a family. Problems may occur at any moment, even when everything seems to be going fine. And you need to be prepared for such problems in advance.
So how does one keep this family happy? The key lies in cutting expenses and raising income. And that's easier said than done. To help you make it easy to find success, given below are some tips:
1. Don't Buy What You Don't Need
Let's keep the family example in mind. Would you get your son the bike he wants, if he already has one in mint condition? If you're smart, then you won't. Business should work the same way.
that you do not need, even if you had already set aside budget for that purpose. You can use that money for other purposes, or just invest it. Remember that money makes money.
In addition to this, curb expenses by doing your work yourself instead of hiring people to do the job, unless it's too much for you to handle.
2. Keep Everyone Happy
It is important to treat your employees like your family members. Just like a family falls apart due to unhappy family members, your business may also fall apart due to unhappy employees. A few things you can do include:
- Offer Benefits: It is believed that benefits help increase loyalty. According to a study, 71% of employees who receive benefits believe they are loyal to their company. However, only 37% employers seem to recognize this. According to a survey, the most sought after benefit is healthcare plan (32%) followed by paid vacations (25%).
- Appreciate Good Work: Appreciation is a fundamental human need, and a lack of it is one of the main reasons why employees switch companies. Just like you would appreciate your child for getting good grades, you should appreciate your employees for their achievements. Appreciation can be in any form, verbal, written or a physical gift.
Remember that happy employees are 12% more productive, and the importance of having content employees increases even more if you're in the service industry since they come in direct contact with the customer. If your employees are unhappy with their job they will not be able to provide your customer the experience he or she expects, resulting in a bad experience.
3. Pay Attention to Numbers
If you want your business to succeed, you need to know everything about it. Make sure to have all important figures in mind at all times including revenue, expenses and ROI. This will help you take decisions on the spot.
You cannot expect to increase your earning until you grow your business. Reducing expense is one way of increasing your net profit, but if you really wish to grow you will have to increase your canvas, and this is not possible without having solid figures.
Robby Du Toit, MD at SellHouseFast says, "I have been in the business for over 20 years and I can guarantee you that numbers are of importance, not just in real estate but in any business. I do not take up on any project unless I am sure of the ROI. It's important to know what you're getting out of every dollar you spent, be it on marketing, procurement or any other business function."
4. Offer Clients What They Want
If you want to make more money, you need to get more clients. And the easiest way to do so is to make your clients happy. Again, it's quite like handling a family. Just like you go the extra mile to keep everyone happy, you need to go the extra mile to keep your clients happy too. There are a number of ways you can attract more customers. They include:
- Market Aggressively: The right marketing helps in many ways. It does not only attract new customers, but also helps build brand identity and gives a boost to your business's image.
- Give Discounts: Who doesn't love discounts? Discounts help increase sales by up to 50%, if done right.
- Offer Free Shipping and Returns: Free shipping is the easiest way to lure in customers if you market online. According to reports, 82% customers prefer to shop from a store that offers free shipping. Plus, they're bound to be loyal and come back if you offer free returns as well.
5. Prioritize Your Clients
Not many sellers understand the importance of prioritizing clients. The truth is that you cannot grow if you continue to lose clients, even if you manage to get new buyers. While every client is important, the fact remains that some clients are more important than others. This depends on how profitable they are to you.
For some clients you have to do a little more. It's all about building relationships. This does not only help create loyal customers, but also brings in more loyal customers. It's simple, your top 10% clients may be bringing you half of your revenue, so those 10% are more important than the other 90%. Look at how banks handle such clients, they treat them as 'preferred customers' since they know their priorities right.
These simple yet effective tips will help you cut expenses, increase your revenue and give a boost to your business.
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