It used to be that big business set the tone and the pace for everyone else. But as globalisation and the need for personalised service have become key drivers within all areas of trade, increasingly it is the smaller businesses with their greater agility and responsiveness to market need that have come out on top.

Blue chip corps are now trying to emulate many aspects of the highly personal and responsive offer that comes from smaller businesses which are intimately connected to their customers. And yet, there are still many lessons to be learned from the big boys. One of the main of these is a crystal clear focus on driving up profits, boosting productivity, making rational streamlining decisions and extending the brand into new markets.

It’s a big ask for smaller scale companies to tackle, but there are still some key lessons to take away. After all, your business has to be in it to win it. If you don’t think with a globally competitive ambition, you may never develop to that scale. So get out there and start to think profits – you may be amazed by what happens.

Review Your Operating Procedures

Many small businesses have procedures and systems in place which have sprung up organically in a somewhat haphazard fashion as the business has grown. There may be inefficient legacy systems at play, or ways of doing things which have evolved out of convenience and never reviewed as the business has grown and it’s needs have changed. Refocus your thinking on the idea that you need to generate more sales while simultaneously reducing your business expenses.

There are many ways to tackle this challenge. You could try creating a cross-selling strategy – sales are easier to achieve and less costly when you sell to existing customers. Think about products or services which complement your existing offer and which could be sold as add-ons.

A relationship-based sales model which aims to capture the interest of potential customers and convert them into brand advocates will build on this approach.Could you bundle together a range of services or products, or offer them out on a yearly plan – something to keep customers coming back to you? Each contact is a chance to enhance your brand reputation and make an additional sale.

Loyalty is a powerful profit driver – extend that by running a loyalty scheme or considering how you can incentivize your customers to recommend you to their own networks. Are there special deals, exclusive discounts or short-term giveaways you could be offering? Undoubtedly, over time, this will have a far greater return on investment than focus all your effort on gaining a stream of new customers. As well as better customer retention, you can focus on ways to trim expenses, and often these two ideas can go happily hand-in-hand.

For example, using an automated chatbot function to respond to simple customer queries or escalate more complex ones not only saves on human resource dealing with what are quite often relatively simple queries, but it also ensures customers get a response much quicker and are therefore less likely to go elsewhere while waiting for a response. Outsourcing certain functions can also be much more cost-effective, and conversely bringing some in house – a constant process of analysis against usage will help you keep on top of service delivery.

Streamline Your Management Costs

If you cannot easily see how efficient your staff and your marketing efforts are at a glance, then your business is almost certainly missing a trick. Automating a lot of these processes is the way to go –  not only can you see the relevant information at a glance and in real time, but you also save the time needed to compile detailed reporting manually. A system like Salesforce can help you look at the numbers of customer leads, employee efficiency and amounts owing in an easy to digest dashboard format.

Employees can upload data automatically and all information is accessible and synchronized from every platform at once. If you’re on the go a fleet service management solution will help you to set KPIs, build workflows and launch projects with virtually zero downtime. It’s all about finding the smartest solution to help you achieve the big picture at a glance. And with the right tools, a scaled-down workforce can achieve more operational support work in less time.

Image via Pexels

Stay Visible

Out of sight is out of mind, and never is that more true that in today’s constantly shifting, digitally engaged world. Make your presence a strategic priority and advance your brand by positioning your business as a thought leader. Engage with the problems within your sector and propose solutions. Author white papers which add real value for clients or even others in your field. Make your presence felt with thoughtful, engaging content on your social media channels.

Accreditations and awards also have their purpose for enhancing your professional reputation and showing that you know how to stay on top of shifting marketplace. Reach out and share your news or seek to make alliances with business who have overlapping, non-competing interests. Finding ways to measure the impact of all this activity is imperative, as you should be constantly learning from what you do and making small, incremental improvements.

Find A Way To Reduce Your Break Even Point

Every business has it’s break even point – the number of products or services that you must shift each month in order to cover your overheads and start making a profit. This point will help you to critically evaluate the impact of any advertising strategy or other expenses which you incur in the process of making a sale. Every expense you make is essentially an investment – but that investment needs to work for you by providing a rate of return greater than its cost. Monitor everything so that you can take a data-driven approach to what is and isn’t working. Too many smaller businesses rely on instinct when it comes to making cost decisions, but what you think is delivering effectively and what actually is can be two very different things.

With a little focus in a regular, planned manner you can downsize your costs and make a huge impact on your overall profits.