25 Tips to Boost Your Small Business’s Profits

Running a small business can be tough, but with a few clever strategies, you can make it more profitable. Let me share with you 25 do’s and don’ts that can help your business thrive.

1. Do prioritize customer satisfaction: Happy customers are loyal customers. By focusing on their needs and providing excellent service, you’ll foster repeat business and positive word-of-mouth.

2. Don’t ignore the power of online marketing: Embrace the digital world! Utilize social media, create engaging content, and optimize your website for search engines to expand your online presence and reach new customers.

3. Do stay on top of your finances: Keep track of your income, expenses, and cash flow. This will help you make informed decisions and identify areas where you can cut costs or invest further.

4. Don’t be afraid to adapt: The business landscape is constantly changing. Stay agile and be willing to adjust your strategies, innovate, and embrace new technologies to stay ahead of the competition.

5. Do build strong relationships: Networking is key! Connect with other businesses, industry influencers, and potential customers to create partnerships, gain insights, and open doors to new opportunities.

6. Don’t overlook the importance of branding: Develop a strong and consistent brand identity that resonates with your target audience. This will help you stand out from competitors and build trust with customers.

7. Do invest in employee training: Your team is a valuable asset. Provide ongoing training and development opportunities to enhance their skills and empower them to deliver exceptional service.

8. Don’t neglect your online reputation: Online reviews can make or break your business. Monitor and respond to feedback promptly, addressing any concerns or issues raised by customers to maintain a positive image.

9. Do leverage customer feedback: Your customers’ opinions are invaluable. Actively seek feedback and use it to improve your products, services, and overall customer experience.

10. Don’t underestimate the power of word-of-mouth: Encourage your satisfied customers to spread the word about your business through referrals, testimonials, or online reviews. Personal recommendations have a powerful impact.

11. Do stay informed about industry trends: Keep an eye on the latest developments in your industry. This knowledge will allow you to adapt your offerings, embrace new trends, and stay relevant in a competitive market.

12. Don’t neglect your online presence: Your website is your digital storefront. Ensure it is easy to navigate, visually appealing, and provides the necessary information to engage and convert potential customers.

13. Do offer competitive pricing: Research your competitors and set your prices accordingly. Offering competitive prices can attract more customers and boost your sales.

14. Don’t ignore the power of social media: Social media platforms offer a cost-effective way to connect and engage with your target audience. Use them to share updates, special offers, and valuable content.

15. Do focus on customer retention: It’s easier and more cost-effective to retain existing customers than to acquire new ones. Implement strategies to foster loyalty, such as loyalty programs or personalized communication.

16. Don’t neglect your offline marketing: While online marketing is important, don’t forget about traditional methods. Local advertising, attending trade shows, and networking events can still bring valuable opportunities.

17. Do prioritize time management: Efficiently managing your time will boost productivity and prevent burnout. Prioritize tasks, delegate when possible, and maintain a healthy work-life balance.

18. Don’t overlook the power of upselling and cross-selling: Encourage customers to explore additional products or services they may find valuable. This can increase their average spending and boost your profits.

19. Do embrace social responsibility: Show your commitment to social and environmental issues. Supporting causes can attract like-minded customers and enhance your brand reputation.

20. Don’t forget to monitor your competition: Keep an eye on your competitors’ strategies and offerings. This knowledge will help you identify gaps in the market and differentiate your business.

21. Do invest in technology: Automation and digital tools can streamline your processes, increase efficiency, and save time and money in the long run. Embrace technology that aligns with your business needs.

22. Don’t underestimate the value of partnerships: Collaborate with complementary businesses on joint ventures or cross-promotions. This can expand your reach and introduce your business to new audiences.

23. Do offer exceptional customer service: Aim to exceed customer expectations. Respond promptly to inquiries or complaints, offer personalized assistance, and make your customers feel valued and heard.

24. Don’t neglect your own well-being: As a business owner, taking care of yourself is crucial. Prioritize self-care, delegate tasks when needed, and seek support from a network of peers or mentors.

25. Do celebrate your successes: Take time to acknowledge and celebrate the milestones and achievements of your business. This boosts morale and motivates you to strive for further success.

Remember, running a small business is an exciting journey. By implementing these do’s and avoiding the don’ts, you’ll be well on your way to making your business more profitable and successful.

As a small business owner, I know how tough it can be to make a profit. There are so many challenges that can get in the way, like keeping prices too low, focusing too much on big ideas instead of your customers, and having too many expenses. It’s a never-ending list of obstacles.

But here’s the thing: even if you’re not making much money right now, the goal is to keep your business running and eventually start making a profit. And to do that, there are certain things you should and shouldn’t do.

I recently had the opportunity to speak with Sam Pillar, the CEO of a scheduling software company called Jobber, to learn more about how to improve profitability. He shared some great tips on how to earn more money and cut down on unnecessary expenses.

How to Increase Profitability in Your Small Business

Do Calculate Your Business’s Costs

Before we get all caught up in making more money, let’s take a step back and figure out where we’re starting from. That means we gotta know all the costs involved. But I’m not just talking about general expenses, oh no. We also need to know the value of our regular activities to our business.

In an interview via email with USamerica.US, Pillar explained that making a profit isn’t as difficult as rocket science. It simply involves understanding the relationship between revenue and expenses. To do this, it’s important to have a detailed understanding of what is known as unit economics – the breakdown of revenue and costs at a very specific level. This includes knowing the cost of each minute of driving time or the revenue generated by a particular piece of machinery. Having clear, accurate, and up-to-date information about your unit economics is crucial for supporting your business. When owners can focus their time and energy on the most important things, they are more likely to make wise decisions.

Avoid Wasting Time on Unimportant Tasks

Once you figure out how valuable your time is, you can focus more on the things that actually make a difference to your business. That means getting rid of things that don’t contribute much value.

Pillar also says, Running a small business is like being caught up in a whole world – when the company starts to grow, a big mistake people often make is spending too much time on tasks that are important but not very valuable. Examples of these tasks include payroll, accounting, invoicing, and scheduling – all necessary, but they can easily take up too much time for business owners, employees, and their office staff.

Automation is a Good Idea

When you want to eliminate some of the boring or unimportant tasks, it’s important to find ways to do them quickly. That’s where automation software and online solutions can help.

I believe that automating these tasks will give you more time to focus on your business. For small businesses, there’s been a great development in recent years – mobile solutions that allow you to handle essential but low-value tasks. With these solutions, you can manage your team, clients, and billing all in one place, from almost anywhere.

Avoid Using Paper

I think it’s really important to focus on reducing waste, whether it’s wasting money or time. Using paper can be super inefficient because it can easily get lost and it’s actually more expensive compared to using online tools or automation.

Make sure to track your time!

If you really want to eliminate other types of waste in your business, you need to know exactly how you’re spending your time. You can use time tracking software or simply keep track manually. This will give you a clear view of what’s going on and help you make improvements.

Don’t overlook your team!

It’s not just about your own time management. There could be a lot of waste in how your employees spend their time too. That’s why it’s crucial to find ways to keep track of their activities and hold them accountable.

Let me tell you something important, my friend. As a small business owner, the biggest expense you have is your people. Paying salaries and benefits is just one part of the puzzle. The time and effort your employees put in can either make or break your business. If it’s not managed efficiently, it can drain your revenue and profitability.

If you’re in a service industry, like us, you already know the costs of drive time and fuel for employees working outside the office. But as a technology company, we understand that there are even more factors to consider. Things like ineffective communication between employees, leaders, and clients, running your business without taking advantage of technology, and wasting precious time on low-value tasks can all chip away at your profits.

So, here’s a tip: analyze your finances regularly.

Once you have systems in place to keep track of things like time, expenses, and earnings, it’s important to regularly monitor those things. Taking a closer look at any changes can help you figure out what’s working well for your business and what isn’t.

Don’t Set Your Prices Too Low

One big mistake that many businesses make and end up with low profits is undercharging. If your prices are so low that you can barely cover your expenses, it may be a good idea to reconsider what you’re offering and find ways to make it more sustainable.

Make the Buying Process as Easy as Possible

Another thing that can get in the way of selling your products or services is a complicated buying process. If customers have to go through too many hurdles just to make a purchase, they might choose a competitor instead. So, it’s important to make the process as simple and straightforward as you can.

Don’t Overemphasize Bringing in New Customers

I want to talk about something important today. You know, it’s really great to have new customers, but we shouldn’t forget about the ones we already have. Trust me, focusing on increasing sales to our current customers can actually help us make more money.

Let’s Prevent Theft and Waste

I know we can’t stop all wastage or theft in our business, but that doesn’t mean we shouldn’t try. We should set up systems that can help us detect and notify us about any issues or unusual activities. This way, we can handle them as quickly as possible.

Avoid Constant Discounting

Now, I get it. Sometimes, offering discounts is a smart move to attract new customers or clear out inventory. But we need to be careful not to rely on it too much. Constant discounting can make our products or services look less valuable and hurt our business in the long run.

Let’s Find Ways to Increase Minimum Order Prices

If you want to boost your sales, instead of offering simple discounts, you can try something different. You can offer bulk discounts, bundles, or other similar offers that encourage customers to buy more. This way, the company will make more money overall.

Don’t Keep Too Much Inventory

Holding excessive inventory can be wasteful because it requires storage and management. Therefore, it can be beneficial to give some discounts or incentives to sell any extra inventory when you receive new products.

Give Top Sellers More Opportunities

When it comes to selling products, it’s wise to focus on what has proven to be successful. So, whenever you have new prospects or promising opportunities, make sure to involve your top sellers. This way, you increase your chances of closing deals successfully.

Be Aware of Supplier Price Increases

When I run a business, I often have to pay my suppliers and vendors. I can’t control the prices they charge, but I make sure to keep track of those charges and note any changes. This way, I can always try to get the best prices.

Negotiate to Get Better Prices

It’s a good idea to negotiate with vendors. By doing this, I can try to get better prices instead of just paying the full cost, which can sometimes be too expensive.

Avoid Paying for Expensive Services and Activities

In some cases, I might decide to get rid of certain vendors or service providers completely if what they offer isn’t worth the cost. I don’t want to spend money on something that isn’t valuable to my business.

Always Confirm Service Calls

If you’re running a service business, one big waste of time can be going to a customer’s location only to find out they’re not actually there. That’s why it’s a smart idea to quickly confirm with them before you waste time driving and doing all the paperwork for each job. In fact, Pillar even suggests finding a way to automate this part of the process.

Don’t underestimate the value of your time

Just like businesses that sell physical products sometimes don’t charge enough for their goods, service businesses can end up not making enough money because they don’t value their time properly. That’s why it’s important to factor in every aspect of your service, including any administrative work, when setting your prices.

Focus on giving outstanding service

No matter what kind of product or service I offer, making sure my customers have a great experience is always my top priority. This is important because it can help me build a loyal customer base and even get free word-of-mouth advertising.

I believe in going above and beyond to exceed my customers’ expectations. By delivering an amazing customer experience, I increase the chances of them coming back to me and recommending my business to others. This is really good for the financial success of my business.

Stop Using Marketing Strategies That Don’t Work

Marketing can be a big expense for my business, so it’s important to make sure I’m getting good results. If I’ve tried a certain marketing tactic and it hasn’t given me the results I wanted, it’s probably best to stop using it and try something else.

Keep Track of How Well Everything is Performing

When it comes to everything from marketing to suppliers, it’s a smart idea to continuously track performance and reassess which expenses are truly valuable for your business. And then, simply get rid of the rest.

Don’t Chase Every Exciting New Opportunity

New opportunities have the potential to greatly benefit a business. However, that doesn’t mean you should always go after every new opportunity that comes your way. Take the time to carefully research and evaluate the risks involved before pursuing them. This way, you won’t end up wasting a bunch of time and resources.

Focus on the Big Picture

Once you’ve made your business more efficient in terms of day-to-day operations, you can then shift your attention towards the important aspects that contribute to running a successful business. Keep your focus on the big picture.