How to make a business profitable?
We continue to talk about how to open and conduct your business at Entrepreneur-Pro. Today is a very good topic: “how to make a business profitable?”. To be honest, it seems to me that not everyone understands how a business becomes profitable. I understand that it would be arrogant of me to say that I will tell you now how to make my business profitable, and it will suddenly become super profitable. I will not tell you how to make your business specifically profitable, I will talk about where the profit comes from in principle, and a little about how to sell and promote your products.
What should you do to make your business more profitable?
Let’s divide into several groups what you should do to make your business more profitable. There are few of them, but having improved each of them, you can repeatedly increase the level of profit of your business. So, here is what you as an entrepreneur and business owner should do:
Attract more potential customers.
Translate as many of them as possible into real buyers.
To each buyer to sell as much as possible and as expensive as possible.
Sell as many people as possible more than once.
Reduce your own expenses.
Here they are, 5 groups of your actions (or tasks, as you want) that will definitely lead to an increase in profits in your business. Consider each group separately.
1. Attract more potential customers
It is also to attract attention in the article “Factors Affecting the Development of Business”. There, I have already said that this is your marketing and advertising, i.e. all that you attract your audience. Everything seems to be clear here, we won’t go deep. More details on how to attract more customers here.
2. Turn as many potential customers into real buyers as possible
We are already talking about conversion and working with your potential customers at the entrance to the sales funnel, which I wrote about here. This, in fact, is the work of sellers in your business – they should be sold to a potential client who has applied, i.e. make it a real buyer. Hence the importance of how well organized the sales process is in your business. A separate article on how to close more deals and complete sales is ready.
3. To each buyer to sell as much as possible and as expensive as possible
To make your business profitable, of course, you should try to sell both more and more expensively to each buyer. Not just like that, but creating additional value and benefit for the consumer. In one of the following articles I will write more about this. Here I will say that it is necessary to use such techniques as front-end and back-end, an additional service to a product or service (respectively, the price is higher), various incentives, manipulations (in a good sense) of the price, etc.
4. Sell to as many people as possible more than once
This means that, firstly, you must do your job well, and secondly, maintain a customer base and, thirdly, competently work with it. It’s probably not worth reminding how much cheaper it is to retain a client than to attract a new one. In addition to the main condition, and this is the complete satisfaction of the client with your work or the quality of the goods, use different client programs, after-sales service, a regular reminder of yourself (not spam !!), etc. This will make your business more profitable, remember.
5. Reduce own expenses
Do you need to write anything? In my opinion, everything is clear :-). Although I will say what I say many times – control everything, analyze and draw conclusions. So, you can understand where to cut costs in your business. Where efficiency is least, of course. And for this, again, accounting and control are needed, right? And not wasted money, also profit, agree.