Published on January 31st, 2017 | by Jose Vasquez0
5 Fast Ways to Make Your Startup Tech Company More Profitable
Use these strategies to enable your startup to start making more money.
If you’re like me, you’re always thinking about ways you can improve your business. You’re going over your financial reports, evaluating your processes, and even changing up your service offerings to make sure your company stays relevant and healthy for a long time. But one of the biggest challenges in business improvement is also the most elusive: how to make more money on your current structure.
Money isn’t everything, and I know plenty of entrepreneurs who are in it for the experience more than the profit (myself included). However, ensuring your profitability is the best way to keep a company afloat—and you can’t complain about the personal benefits.
If you’re struggling with how to make your business more profitable, try one or more of these five tactics:
- Increase your prices for new customers. Raising your prices is scary—it might put people off! But it will also guarantee you a higher profit. You don’t want to offend or scare off your existing customer base, so if you can, leave your historical pricing in place for them. Instead, slowly ratchet up your prices for new customers.
- Remove the underperformers. Unfortunately, not everyone in your business environment is going to help you stay efficient. You’ll have both suppliers and employees who simply can’t carry their own weight—get rid of them as soon as possible.
- Maximize your lead flow. Leads are your best source to more revenue, but it doesn’t make sense to go out and hunt them all the time. Instead, set up a system that generates them naturally, whether that’s through inbound marketing, email, or some other means.
- Get your customers to buy more (and more often). Your existing customer base already likes you, so how can you get them to like you just a little bit more? It could be a reward system, loyalty program, or better follow-up marketing to attract new sales from old customers.
- Make your processes more efficient. This one should be obvious, but don’t neglect it. Every process in your business can be improved, so pick one at a time and start making them better.
These are “quick and dirty” strategies to make your infrastructure naturally more profitable, but if you want to truly maximize your returns and longevity, you’ll have to dig a little deeper. All your little changes add up, but you’ll have to refine your business consistently and often if you want to succeed.