In a previous article, we’ve reviewed some of the most effective techniques to make every penny count in a small business. When your budget is limited, you need to be smart about your decisions to ensure you can get the most out of your money.
We discussed price negotiation with suppliers to keep costs low. We’ve also mentioned the role of innovative digital solutions such as cloud-based services and automation to speed up processes and reduce maintenance costs.
Additionally, there are plenty of free tools, such as free website services such as Wix, that can deliver high-performing results without the price tag.
Finally, the equipment investment is a no-brainer. But there’s no need to break the bank when purchasing equipment, as refurbished and used machinery can be more accessible without compromising on quality.
But what are other strategies available to bring your small business to the next level? In this follow-up article, we’ll focus on tips to increase revenues while working on a shoestring budget. Strategic investments can unlock substantial earning or saving potentials in the long term. Let’s dive into the details of how to maximize your revenue and minimize your costs when running a small business.
Add eCommerce features to a retail store
The most important lesson that small businesses have learned during the pandemic is that going online can drive a significant source of income. Understandably, running an eCommerce business comes at a cost. Therefore, it is crucial to look for effective eCommerce strategies that can drive revenues without breaking the bank. SEO for Shopify stores is one of those long-term win strategies that generate traffic and increase visibility organically.
Physical retail shops can also share their eCommerce sites with existing customers through social media announcements, newsletters, and SMS notifications.
Find local influencers
Social media influencers, such as Kim Kardashian, are paid on average $300,000 to half a million dollars per post. It goes without saying, small businesses can’t afford the investment. Yet, local influencers, called nano or micro-influencers, are much more cost-effective. Essentially, local influencers have a small follower base within a city or a region, and they are able to build close and authentic relationships with their followers. For a small business, they are the perfect brand advocates to promote your company and drive new customers.
Local influencers tend to be active on social media such as Instagram. Many are open to the opportunity to promote brands they enjoy and believe in to their followers. The return on investment when working with influencers is considerably high as they can help drive brand awareness, improve brand reputation, attract potential customers, and even win new partnerships.
Create educational and informative content
You may be familiar with experts creating content on social media, such as America’s favorite family doctor, Doctor Mike, or Detroit’s plastic surgeon expert Dr. Anthony Youn, who are prone to share their knowledge with their audience.
Creating a vlog may seem like a huge investment in terms of equipment and a professional filming crew if you are aiming to create a YouTube presence. However, you can easily create an informative presence on places such as Instagram and TikTok, which prefer smartphone video formats, ensuring an inexpensive setup.
What kind of business can create information video content? The answer is almost any business. As a service provider, you can use video content to answer common questions or explain different situations where customers can use your services. Small companies such as independent bakers or hairstylists, for instance, could showcase some of their works and give tips to their customers. The filming process is as simple as holding your smartphone in front of your face and talking directly to your audience through the camera.
Bear in mind that TikTok prefers videos under 60 seconds if you opt for this channel.
The content can serve multiple purposes. You can utilize your educational content to establish yourself as the local expert. You can also use the content to reach out to potential customers who may be already searching for similar products or services. Additionally, a popular social media presence can also attract sponsor activities, which can also present a profitable source of income for small businesses.
Put your business on the map
As simple as it sounds, the quickest way to get noticed by your local audience is to be visible on the map. Google My Business is a free tool designed for businesses and enabling them to place their companies on Google Maps. If you are unsure about how to use Google My Business, check this smart guide created by Hootsuite to help businesses make the most of the free platform.
What are the advantages of being on Google Maps?
First of all, potential customers are more likely to find your shop through Google Maps. It is also the first search point for people to figure out where their local businesses are, such as looking for local restaurants or doctors.
Additionally, your Google maps presence lets you share opening hours and contact details, such as phone number and exact address.
When it comes to SEO, search results prioritize local businesses; therefore, sharing your business location will help you get noticed by the right audience group.
Don’t try to do everything yourself
While it might appear more expensive to get an expert for the job, more often than not, small businesses waste a lot of time and money through a DIY approach. Some of the most common DIY false economies include building your own website or keeping accounting tasks in-house. In reality, small businesses waste their team’s efforts, which means people have less time to focus on the things that matter.
Outsourcing may seem like an expensive decision at first. But it is guaranteed to save you a lot of costs and time in the long term. Additionally, when you outsource to experts, you can rest assured that you have access to the best tools and experience available. This can not only prevent costly mistakes but also help identify solutions to increase your savings and your revenues.
In conclusion, it is important to realize that saving costs may ironically come at an initial cost, such as investing in a new strategy. Yet the investment can help bring your business further and recoup its own cost and much more down the line.