“Money is plentiful for those who understand the simple laws which govern its acquisition.”
~ George Samuel Clason, author of The Richest Man in Babylon
One goal that virtually every small business owner shares is to make more money. Of course there are the given ways of accomplishing this like raising your prices, increasing your number of customers, etc. But what are some practical, concrete ways to make more money?
Overhead costs such as office space, supply costs and equipment maintenance can quickly chomp away at your profit margins. Perhaps the most straightforward way to maximize your revenue is to reduce or eliminate unnecessary overhead expenses. Fortunately, we’re living in a time where small business owners have more options than ever, which makes this fairly simple.
Here are just a few ideas:
- Downsize your office space
- Renegotiate with your landlord for better leasing terms
- Cut supply costs by seeking out new vendors
- Allow employees to telecommute whenever possible
- Purchase energy efficient equipment
- Outsource tasks such as accounting and HR rather than having full-time, dedicated staff members
Paper is both costly and a threat to the environment. According to The United States Environmental Protection Agency, “The average office worker uses about 10,000 sheets of paper per year.” You can save a great deal of money by going paperless or at least coming close to it.
What’s the exact return on investment for going paperless? A McKinsey Global Survey found:
- 28 percent of businesses achieved full ROI in less than six months
- 59 percent achieved it in less than 12 months
- 84 percent achieved payback in less than 18 months
- Increases productivity (employees can quickly search for documents via a digital database)
- Frees up office space (making it easier to downsize)
- Can enhance your brand reputation
Practice Conversion Optimization
Conversion optimization revolves around adjusting your website to increase the percentage of visitors that convert into customers. It relies heavily upon psychology and behavioral analysis to better understand what makes your customers tick. Some specific examples of conversion optimization include:
- Modifying website layouts
- Testing different color schemes
- Experimenting with different call-to-action buttons
Check out the Conversion XL blog to learn more about this practice.
Create a Referral Program
People intrinsically trust recommendations from friends, family, colleagues and others. A global study from Nielson even found, “84 percent of respondents trust recommendations from people they knew.” You can cash in on this phenomenon and make more money in your business by creating a referral program.
A referral program gives existing customers a discount, freebie or other perk for referring someone they know. Not only does this generate new customers, these individuals tend to be more loyal and valuable than other customers. This can have some immense benefits for the long-term sustainability of your business and should help solidify your brand. Consult the Referral Programs 101 guide for more on developing a referral program.
There are several ways to make more money in your business. It’s a matter of devising an effective strategy that works for you. The right approach should increase your cash flow, open doors for expansion and potentially attract investors.