It is easy to kick-start your startup business, but difficult to keep it profitable consistently. That is because you need to factor in the challenges of business such as economic slumps, lean period, slow sales, losing customers, and more. No new startup business can thrive on loans, savings, investor capital, or financial assistance from family for a long time. Therefore, as EJDalius cites, you need a practical plan in place and goals to stay profitable in your business.
Staying profitable also helps you to keep your employees motivated to work diligently. That is because with an improved bottom line, comes employee incentives and hikes.
According to research, treating workers as partners, asking for feedback, or encouraging volunteering work are some of the motivating factors for your employees. Here are a few workable tips to keep your startup profitable:
Eric J Dalius has seen that requesting referrals works
When you have started your small business, the most cost-effective, best, and quickest way to ensure sales is by requesting referrals within your contacts. It could be your family, friends, or acquaintances. People you know have their friends and family, who may need the products or services you sell.
Once you get the email details of all the possible sales sources, shoot a mail with the catalog and price sheet telling briefly about your offerings to generate a sales force that does not cost you anything.
Spend much of your time on product marketing
Once you set up your startup, organized it, and know what products or services to sell, focus more of your time on marketing and sales of your items for generating maximum income every month. For the initial two years, spend 80 percent of your time on implanting marketing strategies, according to marketing professional EJ Dalius.
Create a potential buyer list, promote your products online, distribute brochures/pamphlets, and things like that. Make sales presentations for your prospective customers too.
Keep an eye on each sale
Your customers can become your greatest asset or nightmarish liability. During the initial period of your business, receive feedback related to your product or service offerings, price, and overall customer service and impression about your brand. You can get feedback through a follow-up call to your customers, survey, and email after they bought your product or service.
In the case of positive feedback, thank your customers for choosing your products. On the contrary, if you receive negative responses, listen to your customers, and improve on the areas where you messed up. Using the feedback, make necessary adjustments to the major areas of your small business or startup.
Collect accounts receivable faster
Customers sometimes delay payments of invoices sent to them. Your job is to collect all receivables as soon as possible. The quickly you collect; it makes a significant difference to your bottom line or profit. The success or failure of your startup depends on how fast you collect account receivables.
When you have a startup business, provide value for your customers’ money. The same rule holds when it comes to your products. Delight your buyers, make profits, and ensure outstanding customer service.