5 ways your business can make more money
No matter if the economy is great or sluggish businesses are always looking for ways to make more money. Successful business managers will implement several options that can diversify their income stream. This is especially true in tough economic times. Businesses that survive an economic downturn are the ones who understand that the key to successfully increasing your business income is to be sure the cost of diversifying is not making the profits negligible or nonexistent. The key to being able to do this often resides in a manager’s ability to think outside of the box. Here are 5 ways that your business can make more no what the economic climate currently is-
1. Rent out part of your business premises-You may need to ask yourself if you own or lease physical business premises, do you really need all of your current space? If you do not you can make more money by renting out some of your space to another business. This is especially true for a lot of small businesses that only need a corner or a kiosk. You may even have an unused room that another business could use as office space. Keep in mind that you can make even more money from your rental space if you are able to throw in some add-ins, such as shared secretarial services or computer workstations.
2. Shift your sales focus-Getting your current customers to buy more of your products and/or services is one of the most overlooked aspects of increasing your cash flow. Shifting your sales focus to your current customers rather than attracting new customers can make excellent economic sense because your current customers are already converted prospects. These are the people who know your company and your products and are easier to sell to.
3. Package services as products-This is especially crucial if your business primarily involves selling services since you can make more money by packaging your services as products rather than charging clients an hourly rate. This will also increase your sales; because it goes a long way to overcoming clients’ reluctance to sign on for what they view as open-ended projects and makes your work appear tangible.
4. Add value-added services or products-This means adding on something that already goes with your business but will attract more sales and possibly potential clients. For example: if you are a carpet cleaner you may want to consider selling bottles of spot remover. You can make more money by examining your products and services and brainstorming services or products that your customers might be interested in. Then just choose the one you think will make the most money for your business and test it.
5. Lend out your employees-You may be able to subcontract your talented and marketable people in order to increase your cash flow. For example, if you have exceptional human resource managers, you could hire them out to other enterprises to run exercises in team-building and management skills. Another benefit on this idea is to lend out employees to avoid having to lay them off. You can loan employees to another company for a set period of time and then get them back when you need them. Keep in mind that this is definitely an arrangement to be made by contract only.
The bottom line is that your business premises, your intellectual property, your products, your services, your customers, your employees are all assets that may or may not be producing as much income for you as they could. With some creativity and planning you can maximize the income potential from these aspects of your business and keep your company running not matter what the economic situation. Often the ways our business could make more money are right in front of us; we just have to recognize them.
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