Top Tips to Boost Your Business' Bottom Line

Global B2B buy sell website: http://www.bytrade.com

 

Ask any small business owner to come up with ideas on how to market their business and they will say adverts, brochures, leaflets, direct mail etc. Whilst all these are great ways of promoting your business they all cost money! What if I could show you a better and more effective way of marketing your business? In this article I am going to share with you some key strategies to get more business and ultimately increase your profits.

 

The biggest mistake businesses make is to focus all their marketing effort and budget on getting new customers. Research has shown that it costs up to 6 times more to get a new customer than to retain or sell to an existing one. And this is the key. Concentrate on selling more to your existing clients. Simple! Squeezing more profit out of your customer base is a cost-effective way of increasing your bottom line.

 

1. Change the rules. In today's marketplace, Sigmon says, you'll need to generate more sales while at the same time reducing expenses, especially administrative fat. To grow sales without adding costs, try cross-selling -- offer new services or goods that complement your current offerings, such as a chiropractor selling vitamins. To cut costs, see what processes you can automate or outsource.
    


2. Stay visible and connected.  Whether it's getting the most up-to-date certifications or taking your brand online with a social-media campaign, face competitors head-on. Extend your visibility and keep costs down by partnering with complementary businesses for advertising.
    


3. Maximize your cash flow. Smooth out the peaks and valleys of income by offering prepaid payment discounts or monthly subscriptions. On the accounts payable end, make sure your payments are on time to avoid fees and late charges.
    


4. Streamline management costs. Sigmon advises automating accounts receivable, customer-lead management, and employee-productivity tracking. Coordinate real-time tracking of these figures so you know who's pulling their weight -- and who is dead weight.
    


5. Market smart. Use the Internet to maximize your marketing, whether it's an attention-getting social media campaign or a Webinar. Advanced customer relationship management software can help you measure return on investment for your online marketing campaigns.
    


6. Make everyone a salesperson. Anyone in your company who has any customer contact should know your offerings -- and how to treat customers.
   
   
    


7. Tighten your credit terms. If you have too many late-paying customers, revise your credit terms and offer less credit. Consider using a collections agency to get stragglers in, or charge a late fee.
    

   8.   Don't ignore the others

By concentrating on the top 20% of your customer base you could be danger of losing a potential diamond hidden in the other 80%. Set some time aside to develop this part of your business. Go through your database and select a few customers who you think, with a bit of courting, could become a 20% business. Put a plan in place to woo them!

 

 

Squeezing more profit out of your customers can be done. It takes planning, effort and a little cheek! It's about building and strengthening the relationship, so they enjoy doing business with you.