Running a business is no cheap enterprise. If you feel like your business is not generating as much profit as you would like, there is a chance that a quick review of the business will reveal some underperforming areas. When you have found them, it is time to think about how you can scale back if you need to. Here are some of the areas you could look at.
Downsizing the Office
One of the first considerations you could make is downsizing the office. Many people take up more room than they actually need. You could very easily find the right-sized space for a discount compared to what you currently pay. Another trick to look at is scaling back some of the services available in the office. Not only will going paperless be fantastic for going green but it will also help you to make some cuts to the printing costs. Little changes like this might make a big impact on your budget.
Shop Around for Insurance
Business insurance can be incredibly expensive. Whether you need van insurance for you company vans, car insurance for your fleet of cars or public liability insurance for your shops, the cost of insurance can add up very quickly. It’s not only insurance you have to think about, when it comes to purchasing properties, it’s worth looking at Asset Finance as an option.
Fortunately, there are price comparison sites that are specifically designed to help you shop around for deals on your business insurance. Quotezone.co.uk, for instance, could help you find cheaper van insurance by comparing quotes from dozens of different providers in a matter of minutes.
Another way to get cheaper insurance is to make tweaks to your policies in order to get lower premiums. Agreeing to a higher voluntary excess on each of your policies, for instance, could save you quite a bit of money upfront – although it does mean you’ll have to cover more of the costs yourself if you ever have to make a claim.
Your review might uncover that profit cannot be generated because your sales team is too bogged down in menial tasks. If they are unable to do what they do best because they are caught up in administration tasks, this is obviously going to be reflected in their performance.
It might be worth looking into certain software that can automate these processes. While this will probably cost you a monthly subscription, you are then going to see an upswing in the performance of your employees. With the chance to focus properly on their work, they should be able to make a significant difference to their own performances and your overall revenue.
Identify and Cut Low Performers
Cutting products that are not performing well might seem a bit drastic but it is important to consider this. When you add up everything involved, you might notice that it is actually costing you more money than you initially thought. They might even be losing money instead of making it. If this is the case, you need to seriously consider either cutting product or reassessing the way it is made.
There will always be someone who is sad that you have cut this particular product but you cannot afford to keep everyone happy. With the revenue that you are saving from not manufacturing this product, you might even be able to develop an even better product that becomes your next big hit.
Switch Up Your Marketing Strategy
Traditional ad space is great but it can also be incredibly expensive. Instead of looking at print and other forms of advertising, you might find that you have more luck on social media. Running social media campaigns can be far more cost-effective and they also have the slim chance of going viral and massively increasing the visibility of your brand.
You should also consider building a referral program as part of your marketing campaign. Email newsletters are easy to produce and send out. Include a referral offer in them. There is more chance that you will see a sale if the recommendation has come from an existing customer instead of through other means.
Look into the world of influencers too. Instagram gurus have amazing audiences and the opportunity to showcase your brand to people from all walks of life. Think about reaching out to one of these influencers for some new marketing opportunities.
Time and Effort
Turning the profits around on a business is not going to be an overnight process. If you feel like your revenue could be a little healthier, you need to make sure that you are finding out why before you begin to make changes. It could be something small which needs to be addressed or it could be something significant. You won’t know until you have reviewed your business wholly. Make a plan and then begin to turn it around.