It’s an excellent time to be a small to mid-sized business leader. Throughout 2019, despite a few potential tremors, the economy has remained strong and stable. Corporate profitability reached a four-year high, GDP growth has been favorable, and consumer spending has been up year-over-year. The percentage of investment as part of the economy climbed back to pre-2008 levels. Overall, business owner confidence levels have increased, and new and exciting prospects have surfaced.
This is the time of year when many companies revisit their goals and objectives, with an eye toward what may need to be revised, changed, or even scrapped in 2020. The bottom line is the bottom line: You need to set goals and make related decisions based on profit levels. Profit is the measure of return on your investment. It’s how you build something you can truly and successfully sell. Here are some tips for maximizing profitability for the long term:
Generate more sales while reducing expenses.
Take a hard look at your operating procedures. Consider:
- Trying cross-selling. Offer new products or services that complement your current ones.
- Adopting relationship-based sales models. The goal is to convince customers to come back to your business. For instance, offer monthly or yearly service plans or a bundle of visits – such as 10 fitness classes – at a discounted price.
- Auditing your administrative expenses. Identify any routine tasks you could eliminate or outsource to save money, such as payroll processing, training, or benefits administration.
Build your brand.
On and offline, take a strategic approach to optimize your employer brand.
- Marketing is all about immediacy. Connect with customers and build business alliances via a proactive social media presence. Set up group meetings, sales presentations, and special promotions using webinars. Offer tutorials, demonstrations, or certification sessions as webcasts or podcasts for instant download.
- Consider partnerships with complementary businesses. Find ways to leverage referrals. Utilize affiliate marketing tools to draw in new clients and retain current loyalties.
- Make every employee a salesperson. Every stakeholder in your business can also be a brand ambassador. Encourage them to spread your company message and engage in sales-generating behavior. Keep them informed of critical changes, make open communication your MO, and support their professional development. This way, you keep high performers and your reputation flourishes. It’s a win-win.
- Measure your progress. Determine which marketing and communication efforts are the most cost-effective. You may want to look into a customer relationship management (CRM) software solution directly linked to your accounts receivable system.
Outsourcing HR functions by partnering with a professional employer organization (PEO) is the right solution for an increasing number of small and mid-sized businesses as they position themselves for growth in the New Year and beyond. As an ESAC-accredited and IRS-certified PEO with more than 20 years’ experience, Lyons HR is well-equipped to help you meet and exceed your 2020 vision. Contact us today to learn more.