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10 Insane (BUT TRUE) Ways to Grow Small Business Profits

When you were a kid, you imagined becoming an entrepreneur — a dream that turned into reality a few years ago when you started your first small business and began enjoying the freedom of being your own boss. But, since then, your profits haven’t grown at the rate you’d hoped they would. If you can relate to this scenario, you’re not alone. Thankfully, many proven methods exist to help small businesses increase revenues, cut costs and improve their bottom line. If you’re ready to take your company to a new level of success, consider implementing one or more of the following insane (but true) ways to grow small business profits. 

 

 

Eliminate Low-Margin Clients, Products or Services

To boost your small business profits, ask yourself the following questions: 

What clients, products or services generate the most money and offer the greatest growth potential right now? 

What clients, products or services generate the least profit and provide the least growth potential currently? 

After analyzing your findings, eliminate low-margin clients, products and services. With the saved time and money, focus on the higher-producing areas of your business. Purging clients, products or services from your company might be painful at first. However, this practice will likely slash stress and pay dividends in the long run.

Embrace Technology

Embrace technology, automate and go paperless. Besides helping the environment, you’ll probably save a ton of money. In addition to cutting costs on paper, you’ll also spend less money on printer maintenance and toner as well as file cabinets and binders. 

Increase Conversion Rates

Through A/B Testing Regardless of what type of small business you have, turning more shoppers into buyers will improve your bottom line. To increase conversion rates, consider implementing A/B testing. Also referred to as split testing, A/B testing utilizes two distinct sales pages in order to ascertain which page converts more effectively. Depending on the nature of your business, converting might equate to a customer buying a product or a client purchasing a service.

Experiment With Pricing

Raising prices while adding value can perhaps be the simplest way to improve small business profits. However, you risk losing bargain-oriented customers. Fortunately, for many people, price isn’t the most important factor when purchasing products and services. Lowering prices with the express intent of selling more products or services can also be a winning strategy.

Increase Average Lifetime Value of Each Client

Repeat customers can help your small business survive during stagnant economic times. Besides searching for effective ways to attract new customers, focus on increasing the average lifetime value of each client. You can accomplish this important task by:

  • Offering loyal customers a product or service upgrade
  • Providing customers with something your competitors don’t offer them
  • Being more convenient than your competitors
  • Looking for ways to solve problems for your customers
  • Providing stellar customer service
  • Reduce Churn Rates 

Churn refers to when a client ends his or her relationship with a business. A high churn rate will negatively impact your ability to grow your small business profits. To reduce churn rates:

  • Establish customer expectations and strive to meet or exceed them
  • Make your first impression a great one
  • Listen to your clientele
  • Closely monitor external environment changes
  • Speed Up Product or Service Delivery 

Speeding up the delivery of your products and services is another ingenious way to improve profits. Fast deliveries make customers happy and encourage repeat business. Decreasing the amount of time projects sit in limbo will also save money. 

Bundle Products or Services

Do you offer products or services that naturally fit together? Providing customers with product or service bundles is a great way to increase both your revenues and your bottom line. For example, an accounting firm might bundle bookkeeping, tax preparation and consulting services.

Expand to a New Geographic Market

If you’ve saturated your current geographic market, consider expanding to a new one. Obviously, the costs of such an undertaking must be analyzed. But the long-term benefits of tapping into new geographic markets might make the venture worthwhile. 

Provide Maintenance Contracts

Do you want to generate a steady income stream for an extended period of time? Think about charging customers an ongoing fee in exchange for maintenance contracts. You can even offer discounts to customers who sign longer contractual agreements. When developing maintenance contacts, clearly list the products or services customers can expect to receive. 

For some professionals, growing small business profits seems like an impossibility. Dealing with saturated markets and a sluggish economy can dampen the outlook of even an eternally optimistic business owner. If you’re struggling to improve the bottom line of your small business, consider adhering to one or more of these strategies.

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Summit Insurance Group

108 N. Statesville Rd.
P.O. Box 2485
Huntersville, NC 28070
Main office: 704-659-2141
Toll free: 888-745-4634

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Testimonials

ALWAYS the best customer service, I have been with Summit for years and no one--I mean no one--is better than Fiona and the Summit team with handling all your insurance needs. They go above and beyond.
Brian Terrell
I went over everything with my husband and he wanted me to thank all of you there for such great communication and care getting us set up. Our frustration with XXXX (carrier named) had reached somewhat of a volatile state. We look forward to a great relationship with Summit and all concerned. Have a great rest of your week.
Carolyn, Office Manager KCG Solutions
I've had Erie for a fair amount of time; however, I don't stay because of their policy offerings or pricing, I much like my parents whom have been with Erie for 25 or 30 years, stay because people like you are always ready to jump in and get things done. No matter the outcome, I very much appreciate your continuous effort.
Jared F.
I love this new insurance group. Excellent customer service! I’m glad we moved our business to Summit.
Randy
I am glad I was able to get a hold of you so easily using your webpage.
John N.
Thank you very much for your prompt attention to this and more importantly, getting it done!!! I should have called you sooner.
Jon T.
Thank you so much for your help in this matter. You are always so kind and very helpful!
Heather R.
You were wonderful to work with and I really appreciate the quick response to my request.
Charles L.
I am certainly glad that I made the switch to Summit Insurance and am especially happy that you are my agent.
Doug M.
You always do a great job, and I appreciate it.
James N.
There are no easy choices below; which at least tells me we have a great policy. I credit that to you, so thanks for all your diligence in helping us to put these together originally!
Andrew K.
It is great to have someone help you with such quality and kindness.
Nellie R.
I keep my personal lines insurance at Summit because of Fiona's thorough and meticulous care of my policies. She's quick with responses and always with the utmost care! She dots all her I's and crosses all her T's. I never worry that she leaves any stones unturned. She's completely objective and professional when it comes to her work. I truly appreciate that. Your office has an eye for hiring the best agents and Fiona certainly stands out above all. I just wanted to give credit where credit is due and thank you for all the professional services that your office has provided.
Vada P.
As a 4 time winner, for all 4 years we’ve been in the market keep doing what you’re doing!!! Obviously your clients appreciate you.
Five Star Professional
April , Thank you so much for your help these past two weeks. Getting the Mustangs onto a collector car type of policy like Hagerty offers has been on my to-do list for a number of years. Fortunately I haven't had to make a claim in that time...but unfortunately I've been missing out on the savings. Nevertheless as soon as I mentioned the idea to you and you told me you underwrite for Hagerty I was very interested in pursuing it. You made the transition seamless and provided significant savings while improving the coverage on my beloved Mustangs. I very much appreciate your assistance!!
Troy R.
Quick note to say thanks for your assistance on dealing with my recent car repair – the adjuster – all that. You were very helpful, responsive and couldn't have done it without you. Thanks so much!
Mary J.