It has been noted that the efficient application of basic entrepreneurial skills in business will guarantee sizable business profits for the entrepreneur but many entrepreneur find it tough to cope in business possibly because customers are spending less or because of stiff competition on prices and market share thereby squeezing margins.
Management consultants believed each business has some profitable ideas capable of making it succeed, though shrewd management of data base of current and previous customers will ensure good profit margins for the entrepreneur. This article presents six tips that could help you increase your profit.
List Your Products On Offer
To improve your business profit, you should endeavour to list all the products and services that you offer for your customers or clients to buy or access . You should also learn to educate your customers on the inherent values in your offers through brochures which should also indicate business address.
Doing this will surely put the mind of customers at rest and at the same time let them know how you intend to make their life easier and better when dealing with you as an entrepreneur.
Identify Your Competitors And Their Business Strategies
Competition has tremendous effect on margins so it would be wise to know your competitors and their mode of operation or the services and products they offer that you do not have. You may however reduce the effect of competition by establishing a joint venture with identified competitor(s) or setting up a cross promotion.
By setting up a joint venture, you can refer your customers to your partner and your partner can also refer their customers to you.
Understand The Needs Of Your Customers
Understanding or identifying who your customers are and what is important to them will guide you to deliver specific products and services to them thereby helping you to increase your business profits. If you failed to understand your customers needs, you may end up spending too much for marketing, advertising and promotions and eventually lose customers loyalty.
Conduct Simple Products Survey
The best way to understand your customers is to interview them to appreciate their challenges and as well know what they want or what they like best about your business. With a simple survey of what your customers want, you will be able to fashion out ways to meet these wants hence increasing your profit in the long run.
Provide Complementary Products
You will increase your business profit if you provide your current customers with complementary products or services because the complementary products will always endear your customers to your business outfit and this will definitely grow your profit when customers’ loyalty is won.
If you are involved in carpet cleaning business, you may offer complementary services in upholstery, drapery or a different type of surface cleaning that may include hardwood, stone, tile or counter tops. These products should naturally appeal to your customers and probably fit what your business offers.
Develop Good Business Referrals
As earlier mentioned, good referrals in joint ventures with other businesses will guarantee increased profit. It should be noted that a good referral source will refer potential clients to you and you in turn, may decide to pay the referral source a fee or a percentage of the business that was generated for you.
Better still, you can set up referral programs for your customers. Existing loyal and satisfied customers are your best referral sources. You can offer some good incentive or reward to your customers after receiving referrals from them so as to encourage positive word of mouth advertising for your business.
