5 Ways to Optimize Small Business Income
Most entrepreneurs who start a small business may need to wait a few years before earning significant profit. In fact, when the company initially opens, they can end up losing money before things turn around. However, business owners can maximize income and profit by following steps like the following.
1. Keep Detailed Tax Receipts
Be sure to collect and organize all expenditures related to company operations. It may seem like a nuisance at first, but tracking your business-related mileage and company-based purchases may be eligible as deductions from your annual tax return. This can benefit you in two ways. First, you might be able to pay lower taxes or even receive a refund. Second, future withholding tax could be reduced. Talk to your tax accountant about recommendations for maintaining these valuable records. The resources at Thinking Capital are helpful and can provide you with more information.
2. Cultivate Customer Relationships
Small businesses are often patronized by customers who prefer the friendly atmosphere of a company where they get to know employees by name and exchange casual pleasantries. Large business chains do this all the time to build customer loyalty. Small companies have an easier time due to fewer employees to deal with, generally smaller or simpler operations, and readily accessible help with questions when needed. Being positive and upbeat while getting to know customers will often have them returning frequently and spreading the word to friends and relatives.
3. Utilize Social Media
With various social media platforms to experiment with, find one or two where you are comfortable posting company information and conversing with followers and customers. Posting fun or exciting company photos and notes helps to build informal business relationships that contribute to customer commitment and referrals. Expanding your customer base can increase sales and profit exponentially while establishing good will within your customer base.
4. Request Reviews and Referrals
As you get to know your customers who appreciate your products and services, request a friendly review. You could also post an optional survey at the company website, and then publicize the positive feedback on social media without appearing to brag. You also may want to offer current customers a reward, such as a discount or small gift, for referring others to your business.
5. Offer Repeat Business Discounts
Customers who continue doing business with your company typically appreciate your recognition of their loyalty, especially when offered discounts or gifts of some kind. People who are rewarded as frequent shoppers are likely to keep coming back, and will possibly bring others with them. Sometimes customers like to patronize small businesses because they are easier to deal with and they represent community interests and values.
By taking good care of current customers, you can grow your client base through additional sales, announcements, and referrals.