4 Counter-Intuitive Ways to Grow Your Small Business
If you run a small business, you’ve probably heard the same old advice on how to achieve growth a thousand times over.
What you might not realize is that there are other ways to spark the expansion of your operations which, on the face of it at least, seem like they’d have the opposite effect.
Here’s a selection of examples of growth-catalyzing steps that really work, but which might appear a little illogical at first glance.
Sell Off Assets, e.g. Used Equipment: Reap the Benefits of Downsizing
When it comes to growing your small business, you may be tempted to increase assets and expand operations. But in some cases, selling off used equipment can actually help improve profitability and gain a competitive edge.
This strategy is especially effective if you no longer need certain items, or if they are outdated compared to newer models on the market today.
By freeing up resources previously devoted towards maintaining machinery, such as time or money spent on repairs and upkeep costs, businesses owners can focus more attention elsewhere, while still achieving their goals.
And today, online marketplaces make it easy to shift unwanted equipment, no matter what purpose it serves. For instance, you can sell used plastic equipment at Revelation Machinery, and get a good price in return.
Prioritize Quality Over Quantity: Invest in What Matters Most
As a small business owner, you often need to stretch your resources and make the most of what you have. This can mean cutting corners on product or service quality to reduce costs.
However, investing more into higher-quality items is actually a smarter move when it comes to long-term success in the market. Customers are far more likely to return if they know they can trust that your products will meet their expectations, even if it means paying slightly more upfront for them.
Moreover, high-grade materials last longer and require less maintenance, meaning better value over time, as well as boosted customer satisfaction rates.
By focusing on providing superior offerings instead of simply increasing quantity with lower standards, businesses can create loyal customers who come back again and again. So while sales volumes might be down, revenues will rise over time.
Don't Lower Your Prices Too Much: Offer Value Instead
It is natural for a business to want to attract customers by offering competitive prices. However, this should be done carefully as reducing your rates too much can actually cause long-term financial damage.
Not only does it devalue the product or service you are providing, but can also lead to revenue losses due to people expecting discounts every time they purchase something from you.
A better approach would be investing in value addition, such as free shipping, extended warranties or extra features that come with each purchase. This not only increases customer satisfaction and loyalty, but also allows businesses owners more control over their pricing models, without having customers expect large discounts all of the time. In turn, this ends up leading towards greater profitability.
Outsource Non-Essential Tasks to Focus on Core Business Objectives
A small business often relies on its limited resources and can struggle with capacity issues. To combat this, it is important to focus efforts towards core activities that are essential for success.
Outsourcing non-essential tasks, such as accounting or customer service, can be a great way of freeing up time while still getting the job done.
By collaborating with experts in their respective fields, business owners can also benefit from higher quality work at relatively lower costs compared to employing extra staff already familiar with these procedures.
The main takeaway is that running a small business shouldn’t be a race to the bottom. Be frugal, realistic, and optimize the use of the resources and assets you do have, rather than pretending you can spend and expand your way to sustainable success.