Raise Prices This might seem like an obvious point, but it’s common for business owners (especially new business owners) to hesitate when it’s time to raise prices. While this should be done cautiously, refusal to raise prices hurts your margins and the perceived quality of your service or product. Instead of hemming and hawing over when and how much to raise prices, conduct periodic audits on your offered products and services to determine the cost of delivering them. That way, price raises are cost-justified and easy to defend if clients push back. Plus you can identify inefficiencies in production along the way.
Build Your eCommerce The world is increasingly digital; even high-value niche purchases are quoted and booked online. Depending on the type of business, you will need to weigh where to invest in eCommerce. Does it make sense to link a Shopify account and allow online purchases, or is it better to create a quote tool and capture client data for follow-up?. There are many services that sell access to platforms such as these. Either way, you need to meet your customers where they are; these days, that’s online.
Build Loyalty with Your Vendors Once you’ve established a steady supply chain, try to stick with it and maximize the benefits that come with those relationships. Vendor discounts are common — some vendors are more than happy to give a good deal to a loyal customer. They also may throw in other perks like free shipping, first access to new products, or even extra inventory — especially if you buy in bulk. Just ask.
Get on Top of Your Invoicing The more diligent you are in sending out your invoices, the quicker you’ll get paid. In turn, your cash flow is likely to improve. If your invoices are consistently lagging or slowing down business, it may be time to hire outside help or invest in one of the many accounting management software platforms. The best accounting software allows you to keep accurate invoices while avoiding a lot of the pitfalls that come with manual bookkeeping.
Identify Waste and Cut Costs Without a second thought, many companies add unnecessary waste to their products. Branded packaging containers and tissue paper don’t always add value to the product for the customer. Consider whether everything included in your packaging is strictly necessary. It can make for a slicker product while helping to save money. You can also consider phasing out certain products and focusing on your best-sellers.
