Steve Goodman - Columnist for Business Matters Magazine

  

There is an old adage that says, “It takes money to make money.” That may be true, and in any business you often do have to spend more money to increase revenue – more money on advertising and marketing, more money on promotions or new inventory, sometimes even on more staff.

But what if there were ways to grow your business without spending an additional cent? There are, and here are 10 of the best ways to go about it.

1. Strengthen your relationships with employees

It doesn’t cost anything to be a better boss. When times are good, and there is a booming job market, employees get very comfortable, which can cause them to slack off. In hard times, almost the opposite is true – that sense of entitlement is often replaced with fear and anxiety of an imminent lay-off. Either situation affects productivity in a negative way. Stay engaged with your employees, especially in hard times. Reassure them that things are OK. Walk the halls, be accessible and be happy! You will be surprised how this can help build more loyal and more productive employees. Think of ways to give incentives to your employees with rewards that will not require any kind of out-of-pocket expense. Be a source of optimism in your company, and it can move in only one direction… up!

2. Reward loyal customers

Too often small businesses equate business growth with expanding their client base. Of course, there is nothing wrong with adding new customers, but remember to spend some time hugging your old ones! Make some calls, send out some emails and ask questions. Find out how your customers are doing; ask if there is anything specific they are looking for. Show genuine interest. If you are a B2B organisation, offer to “put your heads together” and see what you both can do to increase revenue for each of your businesses. Be willing to offer loyalty discounts, VIP purchasing programs or other incentives to regulars. A creative way to engage with existing customers is to host some free seminars on good business practices or human resource issues. And don’t forget to ask your loyal customers to give referrals - some businesses find it very effective to give incentives for every referral.

3. Advertise and market smarter

Before you consider spending more money on advertising or marketing to grow your business, get a clear picture of what kind of return you are getting on what you are already spending. Make sure any ad or marketing effort you do has a way to measure its success. Measuring and analytics can sound complex and overwhelming, but there really are some very simple ways to monitor how any kind of ad is doing. For example, in any print ad you run, use a phone number or exchange that is only linked to that ad – this way every call you get will be identified as coming from that ad. Install Google Analytics on your website; it’s free, and it will tell you where traffic to your website came from, how long they stay, how they exit, etc. There are many simple ways to drive traffic to your website and track results, and then once you are monitoring and measuring the effectiveness of everything, it also doesn’t cost you anything to make changes, tweaks and adjustments to maximise your returns!

4. Joint ventures and value-added services

Think of other small businesses that can closely ally with yours. Offer them some kind of mutually beneficial arrangement, or cross-promotions. What works for McDonalds – putting movie-related toys in Happy Meals – can just as easily work for you and another business down the street!

5. Don’t be afraid to change the rules or raise prices

In lean times it can be very tough to change. Many businesses think that when business is bad, raising prices will only drive more customers away. Maybe so, but not if the change is incidental to some item or service that is really needed by your client base. A slight increase in price can help grow your business without discouraging sales. Also, start to think about changing the rules. For example, one small office supply company had a customer service rule that no matter what, products had to be delivered twice a week to each of its customers. Upon evaluation, they found that for many of their smaller accounts they were losing money by making those two small deliveries each week. The clients they cut back to one delivery a week didn’t mind, and the company saved thousands a year!

6. Offer guarantees and put them in writing

Put up or shut up! Prospects love to see guarantees, so think about what you can guarantee about your products or service. If you are not offering any kind of guarantee, do so, and put it in writing – in all of your ads, on your website and all company literature. Offering a guarantee really doesn’t cost you anything, but it can go a long way towards overcoming the apprehension a potential customer may have when it comes to forking over their hard-earned money, and can help them buy with confidence. Be creative; a “guarantee” does not have to mean giving the customer their money back. One professional repair service “guarantees” they will arrive in clean uniforms and will not leave a mess when their work is done. Another service business “guarantees” that if they don’t show up at the time of your appointment, you don’t pay.

7. Engage with prospects differently

This is especially true if you run a retail business. Floor sales people are notorious for getting a “no thanks, just looking”, simply by the way they greet and engage with potential customers. Learn body language and be nice! People want to do business with friendly people. Instead of just asking, “Can I help you?” offer some real value: “Hello, I see you are looking at jeans. Did you know that the ones over on this rack are half-price today? And next week we are having a special sale on that item for our VIP only members. Can I get your email address to send you an invitation?” See the difference?

8. Take steps to improve cashflow

Step up collections efforts, shorten credit terms and offer incentives for early or cash payments. Turnaround is fair play - don’t be afraid to do to your vendors what your customers do to you. Ask for extended credit terms and discounts, and don’t be afraid to take your business to a cheaper supplier if your vendors will not reward your loyalty.

9. Narrow your focus

Try to concentrate on only providing those goods and services that are proving to be the most profitable for you business, and cast off the “dead wood”.

10. Work smarter, not harder

There is a myth that the harder you work, the more your business will grow. Productivity is not a measure of how much you work, but how much you get back from what you put in. Find ways to manage time, people and money more efficiently. Work smarter, not harder, and your business will grow.