These 6 tips will help your small business not only stay afloat, but blossom in today’s competitive atmosphere.
1. Make a Business Plan and Follow It Through
Make a proper, practical and long-term business plan and put it into action. A little bit of a detour should be acceptable; but if you have long term goals, then you should compare your current standing with your written goals.
This way, you can find out where you are strong and where you are falling short and make the necessary adjustments.
2. Keep Your Employees Motivated
Your staff is the core of any successful small business. Accordingly, they should have a positive and upbeat attitude, and have lots of knowledge about your business’ products and services.
Since you cannot do everything, you will have to distribute the workload between your employees. Reward employees who are honest and hardworking, and find ways to motivate employees that are slow or who underperform. Dishonest employees should immediately be shown the door.
Your employees should feel that they are an important part of your business and that their input is appreciated. Keep them informed on the status of your company through a monthly newsletter or through regular meetings.
3. Maintain Lean and Fast Rotating Inventory
Rotate your inventory as fast as possible. This will enable you to earn more profits and maintain fresh products. Move off all slow moving or dead stock by pairing them with fast moving items. Sell them as a package and offer discounts to get rid of them.
Any items with an expiration date should also be sold off as soon as that date nears. Nowadays, new accounting and inventory software is available that can easily help you in maintaining control over your inventory. Use them.
4. Maintain Control over Your Finances
As soon as you start earning a profit, pay your bank loans or other financial liabilities. Only then should you think about spending on any luxury items. For example, instead of buying a fancy new truck, try leasing 2 or 3 delivery vans, which could improve your delivery schedules and increase sales.
Once you finish paying off any interest on your business loans, that interest amount will become additional earnings.
5. Keep Your Customers
Stay in touch with your regular customers and get regular feedback from them. Before launching new products or services, ask for their opinions and suggestions.
Always be honest. This will ensure continuous word-of-mouth publicity, which is the best form of PR, since those customers are already convinced of your commitment to their satisfaction.
If any disputes or complaints arise, ensure that your after-sales-service department takes care of the problem immediately.
6. Keep an Eye on Your Competitors
You should carefully observe any competitors who are selling products and services similar to yours. Keep tabs on their prices and discount offers; and if your rates are higher, then make it a point to explain to your customers that your service is superior or that your product specifications are higher.
Building a successful small business isn’t easy. But by following the steps above, you can be confident that your small business will start giving you big returns in the coming years.
