6 Ways to Help Your Small Business Become Profitable
Track Your Progress
Technology is your friend. Nowadays, there are numerous of online applications that can help track different components on your business, such as Salesforce, Google Analytics, MailChimp, etc. to name a few. Not only do these apps help you understand how your business is currently performing, but it can also help create attainable, monthly goals.
If your business does not currently utilize any of these tools, evaluate your current practices. Then, research to find out if there is an online application that can complete the task for a quicker and cheaper price.
Consider Investing In Your Equipment
Has your business been eyeballing a piece of equipment lately? Small businesses often are on the lookout for ways to save, so the idea of purchasing a new piece of equipment may seem daunting. However, investing in equipment can actually lead into increases in profitability since they help increase worker productivity, sales, and savings. It can also help your business enter new markets, extend its product/service-line, and grow its customer base.
Can your business benefit from making money off your equipment now and wait 90 days before making its first full payment? If you answered yes, consider our latest 90-day deferral program.
Build an Emergency Cash Reserve
You need to have a cash reserve. If your business does not have one already, create one immediately. As a small business, there will be times where business will be slow, employees will need to be paid, and your recurring expenses will suddenly seem more expensive.
When you are building your cash reserve, bring out the balance sheet. Evaluate your company’s spending habits, along with how much you want to put aside. Every business is unique to how much they should be saving, so while keeping a larger money reserve might work for some companies, it could have adverse effects on another.
In regards to how much you should put aside, common strategies include x% of sales or 3-6 months of business expenses.
Reach Out to Old Customers
Finding new customers can be expensive, so rather than look outward, look inside your database. Do not bombard your past clients with cold calls. Evaluate which reaching out strategy would work best with the type of business you have.
Some examples of ways to reach out include:
Phone calls
Email marketing
Mail
Provide small incentives
Ask for feedback
Send a gift
Holding a customer event
Maximize Efficiency
In order to maximize efficiency, be on top of your numbers. Know your current expenses, and consider the benefits of automating different company processes, such as manufacturing, customer relations, and maintenance.
Evaluate the performance of your current equipment. Is it currently giving you good output, how quickly is it depreciating, will this be a long-term investment?
Do your research on other equipment in your industry. If switching your current equipment for new/used can increase production, cut costs, and streamline growth, consider updating your tools. If your business does not have the money upfront to purchase, consider options such as financing & leasing.
Build a Team
Building a team is said to be one of the most important investments you can make for your company. Your small business may have employees, but if they are not engaged it could be creating unknown adverse effects on your company. Motivate your employees by investing time for team building. This will increase not only communication and collaboration levels within the company culture, but will also positively reflect on you individual employees. This will lead to an increase in their productivity and output levels.
Discover how your business can reach its profitability goals by investing in its potential growth. If you are thinking about adding equipment, vehicles, or other business-use equipment, fill our 90-second application on a secured, private webpage.
American Capital Group has the capability of supporting new equipment purchases as well as used, and will even accommodate private seller sales. It takes less than a few minutes to secure the funding you need, and to get approved up to $150,000 without financials.
