At the end of the year, many small business owners took time to see if they could boost profits to close out the year strong. As we venture further into 2022, it’s time for a review of what worked and what we can do more of to increase profits this year. The good news is, making just a few small changes can give your bottom line a lift and set you up for success in 2022.
It’s no secret that the past few years have been hard for business owners. The Small Business Trends survey discovered that 23% of businesses reported that they experienced a loss of revenue during the pandemic.
While still working through the Covid-19 pandemic, businesses struggled to adapt and grow in a year that proved to be anything but ordinary. Despite the hardships of 2021 from supply chain issues and people still feeling safer shopping online, a new year is here and that means change for business leaders.
Increasing your small business profits doesn’t require drastic measures like upping your prices or laying off employees. If the right tactics are taken advantage of, 2022 could be the year for your business to blossom. Now is the time to put your heart out there and focus on what you can do to make 2022 a huge success.
Here are just a few tips on ways you can improve profits in your small business within your small town.
Know Your Weaknesses
Was there anything that you felt held you back in 2021? This could be anything from your marketing processes to failing to hire the right people. Or, did you find yourself constrained by supply and demand?
Make sure that you take the time to go through your business and address any potential blind spots that could be damaging to your future revenue potential. And once you find them, address them as soon as possible. Implement solutions so they don’t stick around in 2022.
Word of mouth is (now and has always been) the best form of advertisement, especially in a small town. You may think ‘reviews don’t matter that much to your customers, they are local and know you.’ However, testimonials and reviews aren’t necessarily for people that already shop with you. Positive testimonials and even certifications for your business, or individual employees, can set you apart from your competition.
Requesting feedback can be a little nerve racking, but it’s important to know how you’re doing; good, and bad. Listen to your customers and others will too. Then, take your reputation and your customer feedback online. You can use social media, your website, or a blog to connect with potential and existing customers.
Social Media Marketing
Social media is traditionally about connections. Small town communities are also all about connections so it makes sense to continue your brand online. The boom of the social media influencer and content creator market has opened new doors of opportunities.
Social media and influencers have evolved into legitimate ways for small businesses to reach their customers and generate income. For small businesses, there is a world of opportunity in the realm of hashtags, comments and likes. Find the right social niche for you and develop a strategy to make it help your small business succeed in 2022.
Knowing your target audience is always vital but can often be an overlooked step. You need to make sure you are reaching the people that will truly benefit from your products or services. Plus, it’s going to be tough to grow your small business if you don’t know who will actually buy from you.
Take the time to really understand your customers. It will keep you from wasting marketing dollars, your personal time and your team’s energy.
If you haven’t already set a revenue goal, it’s time. But also consider setting a clear 2022 growth plan? Too many companies only focus solely on their numbers when planning but fail to look at the impact on your orders, systems or the people within your small business.
Be sure to really take some time to evaluate where you are in your business now and where you want to be by the end of the year. Ask yourself, how much do I want to grow and how do I put a plan in place to do so? Once set, communicate your plan with your team to make sure everyone is on the same page. This, in turn, will help grow your revenue, keep your staff happy and you can set a genuine and accurate path forward.
Be Sales-Driven (but NOT Sales-y)
It is never bad to incorporate a sales mentality into your small business’s culture. Some smaller businesses hear “sales culture” and think it means more profits, while others react with disdain. Sales cultures simply can mean believing in your goods or services enough to want to share them with anyone that can benefit from them.
Becoming a sales-driven company can take on a variety of forms, such as, one where every employee is trained on how to sell in their particular area of expertise. Make sure that your team is fully aware of your sales goals and is properly trained on how they can help achieve them. Brush up on your own sales skills, too, and make time to regularly identify sales opportunities.
2022 is already looking noteworthy, and it’s a year that could have substantial impacts on your small business. Use these tips to stay ahead of your competition and focus on generating massive growth for this new year.
As always, our team at Virtual Town wishes you well on your sales growth for 2022 and Happy New Year!