The Secret to More Clients, Better Profits and Less Stress

An area keeping us busy at Small Business Gurus is business analysis. Along with our own business we offer analysis services to small business.
After 20 years developing, researching and analysing small business, along with qualifications in accounting and psychology, analytics is my passion. I enjoy nothing more (at work that is) than going into a business and defining why they may be under performing and which areas need rapid improvement. 

For unsuccessful or slow performing companies, three things will stick out like a sore thumb; the absence of Process, Planning and Communication. With every struggling business we analyse, they will have at least two of these components missing. There is a secret to business success. The application of these three key areas (Process, Planning and Communication) is the secret and they must be applied to clients, profits and stress levels in order to build a thriving business.

THE ROLE PROCESS PLAYS

More clients

What is your method for getting new clients? Have you created a process for when customers contact you? For example, our process for obtaining more clients is to always respond to an email lead personally and quickly. We do not come on sales heavy and we always follow up with a call asking if information has been received. We follow this process every time without fail.

Better Profits

There are only two ways to better your profits. 

1. Increase your prices
2. Reduce your costs

When you take on a new client or sell a new product/service, are you assessing how much it is costing you to provide that service? 
For example, you sell health products. It costs you $45 to buy the product, $3 per staff member to sell the product, $15 in time to add the product to your online store, $2 in operating costs per product. The cost to actually stock this product is $65 and you sell it for $68. You are only making $3 profit per product which is not even 10% profit. 
Develop a process to improve your profits. Start by calculating exactly how much it costs you to sell/stock your product.

Less Stress

Creating processes reduces stress levels significantly. The element of surprise and last minute tasks can be greatly reduced when processes are in place. If tasks are performed with consistency each time your workflow becomes fluid and easier to manage.

THE ROLE PLANNING PLAYS

More Clients

Do you plan to obtain more clients? What is your plan to ensure client retention? How do you plan to keep your clients away from your competition? Planning to get more clients is one of the best methods for actually building your client base.

Better Profits

Have you planned your budget and finances so you know how much you need to earn in revenue and pay out in expenses? What about a long term finance plan and forecast for your business. How much do you want to earn, what is your ideal profit margin. If you answered no to any of these questions you are planning to fail as you have no idea about your actual profit growth.

Less Stress

Do you have a business plan giving you clear direction? Have you planned your marketing strategy? Are you aware of next months expenses? What about planning for continuing education and keeping updated with changes in your industry? Without planning for your business success the daily grind, changes and stressors will eventually cause you severe burn out. Another vital reason for planning is to ensure your business has a risk strategy to stay afloat should any unforseen circumstances occur.

THE ROLE COMMUNICATION PLAYS

More Clients

Not only is it imperative you communicate with your team, employees or contractors, it is absolutely critical you communicate with your clients and customers. Even if you are half way through a project, a simple email update goes a long way to maintaining customer relationships. Email, call, update, follow up. Send newsletters to inform your clients of your business changes. Apart from creating good customer service, you are ensuring you stay present in your customers minds.

Better Profits

Communication plays an important role toward your bottom line. Especially as a business grows in size, it becomes easy for excess purchasing to take place and unnecessary expenses to be incurred without being picked up. Often no-one bothers to speak up and money leaks easily from company coffers. It is also common for retailers to receive product invoices with increased prices, yet no-one questions the rise.  One common area we see in small business is the failure to pass on costs to the customer. Often business owners will not charge more for fear of turning clients away. Constantly communicating with your team, your contractors and your clients in relation to costs can increase profits by as much as 20% annually.

Less Stress

Encourage open and honest communication among staff. Guessing peoples thoughts is incredibly stressful so try to ensure people feel at ease speaking their mind. Business is a stressful part of life, a large segment of my clients are business counselling clients who communicate with me their stresses and problems, whilst I guide them through the tough times. It is also highly recommended you communicate clearly with your clients. Communicate clear boundaries. Communicate deadlines. Make it your job to ensure your clients communicate their requirements with you. Information is the key, and without communication correct information becomes lost in translation.

The information above is a brief guide, yet one which can be followed to unlock the secret to developing a sustainable, successful business. Processes, Plans and channels for Communication will take time to establish within an organisation, however I guarantee, the effort will hurt a whole lot less than losing your business.