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Expanding business revenue: how to increase your small business

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This guide outlines how even small brands can work at expanding business revenue and profits.

Survival rates for small business are about an even bet, with only 50% of small businesses five years or more, according to the Small Business Association. However, in order to be successful, one of the main things that many small businesses strive for is expansion. From social media networking to the importance of risk management and simply focusing on keeping your current clients, here are three need-to-know tips for how to do so in an effective way.

Expanding business results via social networking

Building your brand is perhaps one of the biggest ways you can expand, no matter what sector you’re involved in. With that said, having a high level of brand recognition is imperative for gaining new clients, and obtaining it doesn’t have to be difficult. In fact, one of the best ways you can build your business’ brand is by social networking via various platforms, such as Facebook or Instagram. For instance, businesses in the restaurant or retail industry can give potential customers an up-close look at their products via social media. In addition to showcasing product, it can also give you a chance to interact with your customer base directly while allowing you to reach a much wider audience, thus allowing you to get your brand name out into the world.

The importance of risk management

Running a business can be stressful enough as it is, and it’s important to realize that risks that lead to accidents within the workplace can place financial strain on your business and prevent it from expanding. It’s important to ensure that you and your employees are safe and will be taken care of in the event there is an accident by focusing on risk management techniques — no matter what industry you’re in.  For instance, risk management for healthcare businesses should entail the proper safety training in order to eliminate risks among those in the workplace (such as when operating medical equipment and machines). Having a good workers compensation insurance plan in place will also protect your employees, yourself and your business as a whole, thus allowing you to focus on other aspects of growing your business.

Client retention

According to Small Business Trends, a mere 6% of small businesses focus on client retention — an important aspect that helps to set the foundation for expanding any business. Perhaps one of the most viable ways of doing so successfully is focusing on what your current consumer base wants by getting feedback. After your client makes a purchase, asking them to fill out a feedback survey can allow you to get valuable insight on important aspects of your company — like customer service, what could have been done better, and the overall quality of your products/service. Afterwards, you can assess where you may need to make some changes in order to keep your current — and new — customers satisfied.

For expanding business ventures, it is necessary to manage time well.

Some important tools for the growth of a company are presented, as is the case of the ‘time management matrix’. What you mean? That with the exhausting routine, the entrepreneur needs to differentiate what is most important and what does not deserve his priority. According to this concept, it is necessary to fill in four categories:

  • Not important but urgent;
  • Important and urgent;
  • Important and not urgent;
  • Not important and not urgent.

For each of these categories, the entrepreneur must indicate an action to be taken from ‘do it now’ to ‘eliminate from the list’. This time management is essential in expanding business success because when you define what the priorities are, less time is wasted with what is not so important and urgent, and thus, time is better used in making strategic decisions.

What you need for expanding business success

1. Financial balance

Basically, it is important for the entrepreneur to establish what the expenses and income are and with this information make the necessary adjustments. It is essential that the strategic objectives are defined, as well as a payment and receipt spreadsheet. It is necessary to develop a cash flow that serves as a pillar for all decisions involving investments. One cannot talk about financial management without talking about working capital, which is essential to plan, to maintain a balance between payment and receipt deadlines, waste can also be avoided through this financial management tool.

2. Value to the team

For the growth of a small company, it is necessary to value the team and invest in its growth. Identify which talents among employees and always seek to enhance skills through training.

3. Financial separation

One of the most common mistakes among small businesses is not separating personal finances from company finances. These incomes cannot be mixed, the lack of organization can generate problems in business accounting, tax problems, among others. The definition of a fixed pro-labore is also important and in cases where personal expenses have gotten out of control, it is important to have this discipline of not using the business finances for personal purposes;

4. Prioritize customer satisfaction

Always try to invest in better serving the customer, which is the reason for the business. In no way ignore criticism, on the contrary, try to talk and understand your customers, empathize with the problems they have and think about how your products/services can solve these problems;

5. Don’t fear the competition

You need to know your competitors, but not fear them when expanding business success. Based on the analysis of the competition, it is important to think about what can be offered as a differential. Why would the public prefer your products/services over your competition? Worth reflecting on…

Conclusion

Expanding business operations and success can be a stressful endeavor, and in order to do so successfully, it’s important to have a strategy. The most valuable strategies you can employ to succeed in your expansion are to focus on retention and risk management, and to build your brand’s recognition.

About Doria Koci

doriak@thebusinesswomanmedia.com'

Doria Koci is a mompreneur and business coach focusing on advice for women who want their business to boom.

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