How To Make Your Business More Profitable
A small business faces a challenging uphill climb to become profitable. From establishing a customer base to optimizing your financial capital, there’s a lot for you to get right.
If you’re striving to make your business more profitable, Numerico’s small business accountants can help. We handle your books so you can focus on increasing sales and attracting customers. For tips from an experienced CPA on how to boost your business’s profitability, continue reading.
Engage With Current Customers | Seek Repeat Sales
Sales aren’t about the quantity of customers but the quality. You might have heard that it’s better to hold onto existing customers than it is to find new ones. Finding ways to engage with your current customers to a huge step towards success.
If you have satisfied customers, consider how you can provide even more specialized customer care to increase business profits. Here are some methods of building a loyal customer base:
- Create loyalty programs. Make your existing customers feel appreciated by offering them special promotions for repeated purchases, such as discounts on future transactions.
- Pinpoint your target market. By examining which customers keep returning to your business, you can collect data on what demographics are most receptive to your product.
- Stay in touch. To encourage repeat purchases, send existing customers emails or texts about sales, promotions, or seasonal deals.
Increase Operation Efficiency | Reduce Operational Costs
It makes sense that the best way to increase profits is to reduce costs. By utilizing all of your assets efficiently and trimming the excess, you can reduce operating costs while discovering new methods of streamlining your workflow. Here are some areas to focus on optimizing:
- Supplier optimization. Ensure that you’re getting the best price for your materials by negotiating prices, changing suppliers, and consolidating suppliers for bulk-purchasing discounts.
- Financial optimization. Allow a trained accountant to review your small business taxes. Keep your finances compliant and accurate to avoid any penalties.
- Location optimization. Make every inch of your workspace work for you. Rent out unused space to cover building costs.
- Production optimization. Reduce material and time waste. Design schedules and processes to ensure efficient output while using the minimal working hours possible to reduce labor costs.
Expand Your Market
Review your sales and consider whether your local market is saturated with your product or service. If your sales numbers begin stagnating, you could expand operations into new markets. You can expand your business in the following ways:
- Create an online storefront. Starting a digital storefront is dramatically less expensive than maintaining a physical location. Your customer reach is also much broader.
- Establish a new physical location. Consider areas that don’t have similar vendors to your business. The money investment will be higher, but you could potentially double your income if you choose a location strategically. Review Numerico’s tips on growing a business. Also, if your business expands to more than one state, our team can help with multi-state tax compliance too.
Hire a Professional Accountant/CPA
While you’re busy expanding your audience, let a certified public accountant handle your finances and review your financial records for compliance and accuracy. These details can make or break a small business, so partner with an experienced CPA to maximize profits and minimize stress.
Don’t let accounting slip down your priority list. A CPA can give your finances the care and attention they deserve while you strategize on making your business succeed. Numerico accountants specialize in small business finance optimization.
Schedule a consultation with a Numerico CPA to make small business financial decisions confidently.
Invest in Digital Marketing and Social Media
The internet is a small business’s best friend. Why? 78% of people who search for local business products or services ultimately make a purchase.
Social media offers a low-cost, high-population advertising platform. Effective search engine optimization tactics boost your business to the top of Google searches. When consumers associate your brand with a particular service, they will search for your business specifically.
Once you’ve established a digital audience, make a plan to follow up with these leads. Offer promotions for first-time digital customers or create newsletters to keep your brand relevant with social media platforms.
Numerico | CPA Serving Southeast Michigan
If you’re looking to optimize your small business practices, rely on the most experienced CPA in Livonia, MI. Numerico provides financial expertise to small business owners in Plymouth, Canton, Farmington Hills, Ann Arbor, Westland, and the surrounding Michigan communities. With a comprehensive knowledge of tax laws and compliance practices, you can be sure your finances are in good hands with Numerico