Which Strategies Are Profitable For Small Scale Business
- February 25, 2021
- Posted by: Manju Rai
- Category: Digital Marketing News
Starting a small business is not as easy as we might think it is. It requires the same effort, research, and strategies that big corporations require. The only difference is that small business has the flexibility of trying out different options on a smaller level.
Did you know the biggest cosmetics chain, The body shop, started small with a mother and her daughters selling out unique skincare products? The same goes for subway and Walmart, who started small and now are big giant corporations.
The key however is not to stop. What happens with small businesses is that they are content with earning small profits and don’t strive for more. If you want to increase your profits, you have to keep on working on different strategies to make the most of it.
So for example, if you are offering the best translation services in Dubai, you can adopt a few growth strategies to grow your business more, extending it in terms of target audience geographically. In this article, we will list down a few strategies that are profitable for small-scale businesses.
Strategies to Increase Profits For Small Scale Businesses
- Market Penetration
Usually, small businesses stay confined to their designated target market and do not further penetrate the market. The first strategy to increase your profits is to penetrate the market. This however means that these businesses need to work with their existing products and existing market. Just penetrate the market for a larger share.
How can you do this? Let us give you a few tips:
- Reduce the selling price of your products and services. This is the most effective strategy you can use to get more customers. It’s a human instinct to try new and different products when their prices are lowers compared to their regular market prices.
- The second thing you can do is to increase the promotion of your product and services in the market. Sometimes the message just doesn’t reach your targeted market. You can do this by launching special promoting events and campaigns or offering special sales discounts or offering different schemes.
- Another thing you can do is to widen your reach to the market by increasing your distribution channel. So look for distributors, retailers, and sellers to sell your product.
- Keep improving your products with upgrades and different features. The best example, we can give you about upgrading your products is the Apple iPhone. The company sold its new upgraded phone with the tiniest upgrades in technologies and other features.
- Make your competitor’s customers come towards your side. You can win convert your customers through different strategies using contests, competition, or some value-added features that distinguish your products from your competitors.
- Expand Your Market
This is a popular growth strategy that focuses on expanding your target market. This is a very effective strategy for small businesses.
Sometimes you can also reassess your product to see if it has the potential to be marketed to a new audience. The reason why social media marketing is so successful is that it reaches out to various audience types and sometimes helps you recognize a new market potential that you didn’t realize before that you had.
- Use Different Channels to Sell your Product
There was a time where selling through your brick-and-mortar store was enough. However, today due to the internet you can use a wide variety of selling channels for your business.
There are so many online selling platforms that you can use today, that can increase your products reach and help you generate more profits. The following are the most adopted selling channels today in 2021:
- Selling online on social media platforms, like Facebook, Instagram, etc. Or you can develop your business website and sell it through your official business website. Another thing you can do is use online marketplaces like Amazon, Etsy, eBay, etc to sell your product.
- Small businesses can also formulate membership and subscription programs to sell products.
Today, a lot of people are also using mobile applications to sell and promote their products. This is the most innovative way in 2021 to adapt to and grow your business.
- Increase your Product Line
You may have reached your potential with the existing product, so this means now is the perfect time to expand your product line and develop some new products and introduce them to the existing market.
There are three ways with which you can expand your product line:
- Develop and Introduce new products
- Add new features to the existing product, and launch it as a new model
Update the feature of the old product to make it new.
- Change the Internal Operations of your Business
Sometimes, businesses don’t realize but their internal cost of operations ends up eating all of their profits. This means that small businesses should try and increase their sales while trying to reduce their expenses, or at the very least keeping it to a basic minimum.
To increase your sales, we have mentioned a lot of tips above, all in all, you need to cross-sell your products using different offers and market channels. On the other hand, to reduce your expenses you can try auditing your firm to figures out costs that are unnecessary.
- Make Everyone your Sales Person
The last tip that we will share with you today is to make everyone your salesperson. So if you are offering the best translation services in Dubai, what you can do is ask all your employees, teammates, friends, and family members to support and promote your business.
The more your employees advocate for your business or brand, the more sales you will be able to generate and therefore your small business will have more potential to earn profits.
These are only a few, but the most important tips that we have shared with you that will help you grow your business and your profits.