The changing economic and global landscape has greatly altered the dynamics of doing business. Before, having a store means printing flyers, putting up billboards, and investing in road shows are the way to go to increase a business’ visibility. But with the internet and the increasing influence of social media platforms, business operations and expenses are cut to account for only the bare minimum requirements. Bottom line growth strategies have accounted for the strength of the internet.
While the internet is a prolific platform, a lot of work has to be done first.
Customer engagement has been the major precursor of business success. As countries and businesses turn toward deepening the hold of the service sector, traditional businesses, especially small and medium enterprises, are threatened to go obsolete.
For many businesses, getting the ROI and augmenting the business’ profitability is essential. More often than not, business owners do not see the bottlenecks right away. Not unless they are already smacking them directly on the face that the owners will make a move.
There are various ways to optimize bottom line growth strategies. Some will even direct you to managing your online visibility and lead you to hiring strategists. All these additional personnel will only shoot up your cost.
We recognize the importance of having an online presence. However, most of the time, business profitability is primarily hinged on the efficacy and leanness of your business operations.
In this article, we will point out some of the most common pitfalls that business owners tend to overlook.
1. Review your pricing scheme
Pleasing customers by offering lower prices is a good thing. You get to have consistent buyers in your store, and there is a significant potential of new clients through word of mouth. However, if your sales do not meet the investment you have poured out, consider reviewing them.
You have to evaluate and determine if the price you offer is fair for your business. Clients are essential, but you also have to think of yourself. If your sales are good, but your profitability rate is declining, do an increase. Check the pricing strategy of your competitors. From there, you can make the necessary changes to the point that you would not drive away your patrons.
2. Streamline your expenses
Most of the time, many business owners fail to realize that some of their operational expenses are the ones killing their business. Evaluate the size of your business, its needs, and the frequency of customers coming in. If it is a small or micro enterprise, then you don’t need unnecessary overhead costs. Most of the time, several personnel manning the store would suffice. Other indicators include slow moving inventory, expensive office space, unnecessary office expenses, and more. What you can do is assess your business then work your way through it.
3. Loans with lower interest rate
Startups would normally have higher interest rates, given the lack of good credit rating history. But if you have been in the business for 5 or 10 years, consider applying for a business loan with a minimal interest rate. This can help you expand your business while making sure that your financial obligations are controlled and kept at a minimum level. Talk to your banker and arrange a new contract for a loan so you can set this up! Just make sure to review the terms carefully.
4. Diversify and explore!
One of the common mistakes business owners is becoming complacent. Believing that your business will remain the same is a huge mistake. Times change and customer preferences are fleeting. The present can be a successful day for your business, but tomorrow it might not. Diversifying your reach and capabilities is important.
If you own a small pet shop, you might want to consider conducting seminars or talks about pets. Holding contests will also be a good consideration, too. Whatever event or initiative you can think of doing, it should always broaden the scope of your services. This will help your business stay relevant even with the increasing competition in the market. Do not ignore such opportunities!
5. Always think of failures as opportunities
Business is a high-risk, high-reward endeavor. You can succeed completely and fail instantly. Various factors account for this – luck, availability of capital, people, and more. While it is a failure-laden industry, this does not mean that you will stop doing business.
You need to be perceptive of any red flags. Pointing out failure signals and doing drastic measures are necessary, so earnings would not suffer. If advertising campaigns or other initiatives are not working, do not take six months or even a year before repealing it. Be as aggressive and decisive as you can be!
6. Trust others and delegate work accordingly
As a business owner, you can’t help but to be hands-on in the business. Even in the pettiest problem, you would want to be involved and to resolve it on your own. However, you are wasting your time, which could have been used for other fruitful tasks. You could have spent it formulating a new business plan or talking to prospect investors for the company.
Trusting employees is the hardest thing to do. But in your case, you have to. There are ways to monitor them and track their productivity. This will elicit confidence and build trust among your employees. Provide incentives when necessary. This will help in boosting their performance.
7. Restrategize and revisit your marketing plan
Usually, business owners are too confident and egoistic to admit that their projections have been off the weather. This happens a lot in various industries. If you want to earn, you would have to go back to the drawing board and assess your failed initiative and plan. Take bits and pieces of what went well and integrate them into your new plan.
Ensure that you are tapping the right demographics for your products and services. Most of the time, marketing initiatives are not directed to their intended market. What happens is that it does not resonate with them. Sometimes, even if it does, it just does not sell. You could not just keep on shouting and posting the same thing. Go back to the basics! Make extensive research and saturate any possible aspects of the plan that you might have overlooked. Of course, field work is ideal, but online research will do just fine. As long as you know your market and understand their needs and pains, then you can start doing it all over again.
8. Improve on your customer engagement initiatives
Do not expect that customers will just line up and buy all your products and services. There are a lot of companies that sell the same thing and offer the exact services that you do. But what will set you apart is how you treat your customers. How expensive is it to call them or visit them in person? If they have questions online or in person, you answer them with as truthfully as you can be and provide possible recommendations or alternatives that they might opt to consider.
Be proactive and ensure that your clients feel valuable and important! You would not get wrong on this. Once you have established a rapport, then that is the time that you can ask referrals and support from them. It all starts by getting their trust!
9. Maintain a growth mindset
The enemy of a wise businessman if believing that s/he is already too successful, and there is nothing else to learn about the business, its’ dynamics, and the strategies. Mastering a craft is one thing, but you should always bear in mind that no matter how good you are in your business, there would always be someone that can replace you.
Being too much comfortable and complacent will spell a lot of trouble for you. Always possess a growth mindset. Enjoy the passion for learning, and always seek ways to improve your performance and business strategies. Times change; the same goes for the economic paradigms that we follow. Technologies have become an integral part of how we do our business nowadays. Staying stagnant will leave you behind the industry! Take part in any events. Read news and recent publications and always take time to revisit your business plan and assess if they remain relevant in the current time.
10. Always stay visible
Being active online is a serious understatement. Currently, this is one of the strongest bottom line growth strategies that you can employ. Almost all consumers are online. Be as present as you can be. Buy ads if you can and stay relevant in any new developments – be it a fad or a challenge craze, do it!
Adopting bottom line growth strategies can be painstaking. There are so many things to consider, but too little time to assess and execute your plans. But the most important thing here is knowing what your business needs. Assess how to make things more efficient and be decisive in cutting off any impediments to your profitability.