As a business owner, there’s a good chance you are on watch for any avenues to create additional revenue or profit. Whether through increased sales, client numbers, or investment opportunities, you are likely open to just about all pathways to make more money, and we’re happy to say that there are a tonne of ways that are quite simple.
Keep in mind that to make more money as a business, you’re going to have to part with a small sum as your investment amount, though with calculated and strategic operational changes and investments, you’re going to be on track to make a little or a lot of extra money. That out of the way, take a look below at our seven simple ways your business can make more money.
1. Strip All Failing Products, Services and Anything Haemorrhaging Money
To our very first tip, you should always be on the lookout for avenues to save before you look to make extra money. One of the first places we ask that you look to is back at your business. There is a good chance that not everything is running one hundred percent optimally and we suggest that you work to understand which of your products, services, contractors, investments and other processes are losing and making money.
If you find that a specific service is costing you more than you’re making, then cut it off immediately — even if it means losing a client or two. The free time garnered from removing these money-wasting activities can be re-invested back into your business and used to focus on things that will make you money.
2. Work on Improving Conversions
A quick and simple tip on our list is related to conversions. There is a good chance you have some form of marketing campaign running which is focused on garnering new clients and customers. That in mind, work to analyse and refine these processes to convert your customers better.
This is by far one of the most effective ways of making more money as a business. A quick tip here is offering improved avenues for sales, such as implementing advanced POS or point of sale systems that take currency like Independent Reserve Bitcoin, for example. You are then opening your business to a wider market.
3. Refine Inventory and Control Wastage
Our readers who work in retail sectors, or anyone who works to sell some form of merchandise, we ask that you take a gander into your inventory and what you’re selling and check how things are doing.
It’s all too common for business owners to continue orders and forget how their products are actually selling, and so profit takes a big hit here.
For this tip, work to refine product offerings and streamline them into avenues that are selling well and go from there. If a product doesn’t fit with your brand or your other services very well, there might be cause to remove it from your business and replace it with something more profitable, for example.
4. Make Financial Investments
One significant and rather effective way that a business can make more money is by setting aside cash and using profit to grow itself. In the same way that personal and individual investors use their stock trading accounts to set aside money for growth, businesses can also do this too. It should be on the top of your to-do list to make your profit from your business work, not just sit in a savings or emergency account.
That in mind, investing in the stock exchange or buying cryptocurrency, for example, can be a fantastic way to make more money as a business owner and give your income a chance to grow a lot faster than standard savings interest rates. For example, Elon Musk recently invested $1.5billion of Tesla stock into bitcoin. To add to this tip, you may also be able to invest in property or other asset classes to improve your business’s income and total value.
5. Continually Monitor Overheads
Another great tip from us is to keep on top of your overheads and make adjustments to suit your business’s financial standing — in a preemptive sense.
We understand that fixed costs such as office or commercial space is not adjustable, though most other costs are. When things get tough, or if you expect a dip in profit, take a look at all of your overheads and make adjustments based on the projected quarter ahead.
You could cut down on POS system fees, for example, reduce smartphone usage or plans, cut contracted hires and make a myriad of other similar changes to better increase your take-home profit.
6. Find a New Customer Base — or Adapt to Fit a New Profile
A two-pronged approach to making more money is working to find new customers, and creating new product lines that are going to capture the interest of a new customer base. This tip, although simple from the outside, does take a little time.
You should work to run a marketing campaign and capture as many new customers as possible, though you should also work to do as much market research as possible to find out whether there is an untapped market in your local area or online.
Once you have a look into your customer’s new profiles, you can re-build your business’s product and service offering from the inside out to suit these customers.
For example, many businesses rely on customers making concessions or compromises to buy a specific product. However, we ask that you place the customer first and develop products and services that are explicitly designed to suit their needs and buying patterns.
In doing this, you will have created a service and product suite that is curated to your customers, rather than your customers adjusting to your products.
7. Take a Look at Pricing Structures
On to our final tip now, and we suggest taking a close look at pricing structures in your business.
As we suggested above with our overhead monitoring, you should also always be on the lookout for how your pricing structure is going and whether it is leading to increased sales and undercutting the competitors or whether it is eating away at profits.
That in mind, make sure all of your products and services are generating profit wherever they can, and if you find that these aren’t able to be adjusted or are too costly to offer as a product or service — cull them.
Those points above in mind, it’s clear to see that there are a great many avenues for businesses to make more money — you will just need to think a little outside the box.
Keep in mind that profit or income is generally fixed, or rather static, and so what you do with this money to maximise it is the most imperative thing when it comes to making more money as a business.