When you run a small business, if someone asks you what your goal is for the next six months, it’ll probably fall in line with some sort of strategy to make more money, right? Monetary gains for most small businesses come over time, and often in small percentage gains over the previous month, or quarter. While monthly growth is nice, wouldn’t it be nice to add cashflow in the next six months that isn’t necessarily dependent on your growth as a business?
It’s possible. Here are five often overlooked ways that most small business owners can make more money in the next six months.
Form a strategic partnership.
The best businesses know how to lend their product or service to another business in order to increase the bottom line for both businesses. This is a strategic partnership and many of the best business collaborations have used it. For example, a restaurant could team with the coffee house next door to sell their coffee and pastries. A nightclub could partner with an entertainment group to save on entertainment cost while helping the entertainment group get their lesser known artists a venue to play in.
Once you start thinking about these types of ventures you won’t be able to stop, they’re everywhere.
Offer in-house financing.
This step was key for two of my clients. One sold tires, and the other was a veterinary service provider. Both sold high ticket items so it made a lot of sense to offer financing options. I turned both of these clients on to Extend Credit, which allows small businesses to manage their own in-house financing through the smart use of software and online tools. Both saw huge gains over the next couple months, and the best part is, they weren’t really doing any extra work. Win win!
Shop your fixed expenses regularly.
Rent, internet, insurance, legal retainers, tax-related expenses and more are expenses that all businesses will incur over the course of a fiscal year. However, you could be pocketing thousands of dollars in additional cashflow each year if you could lower these costs. This might seem like a no-brainer to some, but you’d be amazed at just how many people have been in a lease for a decade without even asking for a discount, or seeking out other locations that offered more bang for the buck.
Re-package your services as products.
Service-based businesses are often met with client contention when the conversation gets to pricing. Being that services are often open-ended agreements, clients are sometimes redundant to sign on for months or even years for a service. However, if the agreement is a set price, and they are paying for a specific “thing” as opposed to months worth of services, you’ll often see them drop their reluctance and go ahead with big ticket purchases.
Master the upsell.
The two ways to increase revenue are to grow the number of customers you have, or to increase the total number of dollars you are able to get from each one. What was once sales 101 is now seemingly lost on a lot of small business owners. The upsell could be the difference between a customer buying four tires for $600 or a customer buying four tires, and a yearly package that covers rotation and repair for $750.
If you want to run a successful business, you have to learn how to increase revenue that is above and beyond your monthly growth numbers. A few simple tweaks here and there could lead to your most profitable year ever. So, what are you waiting for?