No matter the industry, all business owners share at least one goal, and that is to see their business thrive. Despite the challenges and stressors that have faced business owners lately, now is the time for business leaders to begin to look towards the future. While recent events may have tested business owners, the economic global recovery is expected to continue in 2022, and some semblance of normality is predicted to emerge. In order to make plans for how to shape the future of their organization, business leaders need to take a more proactive approach.
There is economic uncertainty heading into 2022 as business owners are facing inflation, rising prices, and a shifting job market. In the face of these uncertainties, business owners want to know how to cut costs, increase profits, find new opportunities, and grow their business. Trust your local Safeguard Advisor to help meet your time, productivity, and business needs.
Business Owners Want to Cut Costs and Increase Profits
Maintaining a steady profit can be a challenge for business owners. Yet, profitability is at the core of any business, and business owners are often looking for ways to increase their profits. There are two main ways for a business owner to increase profits, and that is to either increase revenue or cut costs.
Businesses can use a variety of techniques to increase revenue, including:
Sell more products – Increasing sales is often the go-to for increasing profits. Often referred to as upselling or cross-selling, encouraging customers to purchase a higher number of goods or services or selling them related or complementary items is a valuable way to increase revenue. Another way to sell more products is to actively encourage repeat business. Once you’ve sold something to a customer, continue to keep them updated with your marketing efforts so you can persuade them to do business with you again. Finally, businesses should focus on attracting new customers in order to gain market share and increase overall sales.
Raise prices – In addition to selling more items, another way for businesses to increase revenue is to increase the prices of their products and services. In 2022 businesses are facing global pricing pressures caused by labor shortages, supply chain disruptions, and inflationary pressures. As businesses are spending more to produce products, they often need to increase the price they charge to consumers. Of course, customers are also cost-conscious, and they want to protect their money as well. Companies will need to balance the rising cost of raw materials with the end cost to the consumer. It will be essential to communicate the specific benefits your product or service provides.
On the reverse side of increasing revenue is cutting costs. Businesses can focus on reducing both variable costs and fixed costs:
Variable costs – Reducing variable costs will primarily include cutting down on the costs for raw materials, direct labor, and commissions. At a time when many companies are struggling to hire or retain workers, cutting costs on direct labor must be approached in other ways. Better technology or finding opportunities for outsourcing may allow businesses to lower labor costs while still investing in the employees they do have. No matter how variable costs are reduced, companies should take care that these reductions do not affect the quality of their product or service as that could adversely affect sales.
Fixed costs – Rent, insurance, loan payments, and utilities are some of the most common examples of fixed costs. It can seem like some of these costs are unchangeable, specifically things like rent, but there are still actions you can take to improve your profitability. You could try to renegotiate your lease, get new quotes for insurance, or ask the bank for a lower interest rate.
Business Owners Want to Find New Opportunities and Grow Their Business
After a period of disruption, with many business owners having to pivot their operations in order to remain profitable, in 2022, business owners want to find ways to regain their old customers, identify potential new opportunities, expand into new markets, and find new ways of selling. Business growth can be complex, and in order to achieve long-term success, organizations should also consider:
Outsourcing – grow your business more efficiently and maximize your productivity through outsourcing. Outsourcing tasks such as payroll or marketing frees up your employees to focus on core business operations.
Marketing – Placing a focus on your marketing will keep your business top of mind with customers and prospects. Now is the time to invest in a better web presence, search engine optimization, email newsletters, and promotional items and apparel. Successfully return to in-person events with professionally designed and printed signage and business cards. Use Every Door Direct Mail (EDDM) to promote your business to a specific community.
Customer Service – Stand out from the crowd and drive customer loyalty by ensuring customers and clients have a positive experience with your business. Delight your customers with freebies and branded swag like shirts, mugs, pens, and power banks. Excellent customer service can not only encourage repeat customers, but they may even recommend your business to others.
Businesses have been facing unprecedented challenges and adversity, but business leaders have persevered through their determination to succeed. Now business owners are ready to cut costs, increase profits, find new opportunities, and grow their business. Growing a business isn’t easy, but with the right products, services, and planning, your local Safeguard Advisor can help you succeed this year. Trust your local Safeguard Advisor to learn about your unique goals and then help you with personalized solutions that fit your business. Call 855.778.3124 to get started.
- All business owners share at least one goal, and that is to see their business thrive.
- In 2022, business owners want to know how to cut costs, increase profits, find new opportunities, and grow their business.
- Business leaders need to take a more proactive approach and make plans for reshaping the future of their organization.
- Trust your local Safeguard Advisor to help meet your time, productivity, and business needs.