Re-Focus Your Small Business

Whether you have been a small business owner for several years or several months, it will help your bottom line to take the time to re-examine and then refocus your business by asking and answering a few questions: 

1. What is your best seller? Which product or service do you sell the least? Sometimes, the product/service that we want to sell the most, is the least purchased. 
   
2. Which product or service has be largest profit margin, and which one has the smallest profit margin? One client realized that the product she sold the most provided the least profit, almost a break-even. 
   
3. How can you amplify your sales of the of the products or services that are performing the best and the worst? Some of your poorest performers may need to go to so you can reduce your inventory, save dollars by not promoting them, or   refocus your advertising to increase sales. It may be possible to "bundle" some least sought after services/products with your best sellers. 
   
4. Who is your customer? Not the one you target, but who are your "real" customers? Often we start with a marketing campaign for the "ideal customer". When start to look at who our customers really are, we may find several differences. Use this information to re-adjust your marketing and sales strategies. 
5. Is there a product or service that your customers frequently ask for but you don't provide? A lawn maintenance company was asked about landscape design services, something they did not offer. After being asked several times for these services, he partnered with a landscape designer and expanded his market, not only creating landscapes but then providing follow-up maintenance services. 
   

Once you gather the answers to these questions, then consider how you can: 

• Increase your profit margin by streamlining processes, bulk ordering to reduce costs, or other methods to increase the bottom-line. 
• Refocus your marketing plan to target the "real" customers 
• Streamline your product or service offerings to increase profitability
• Remove products or services that are the least profitable or are not profitable at all
• Look for opportunities - in answering the questions above, were there any gaps? Maybe providing maintenance, or service plans; providing follow-up services to clients to keep them on task; or partnering with other trades to further sales. 

Examining your operations, identifying your real customers, and evaluating your sales will provide you with valuable information to refocus your business to increase your profit. (Contact us if you want an outside look)