Maximizing Profits, Increasing Sales & Attracting Investors In Tough Times
Maximizing Profits, Increasing Sales & Attracting Investors In Tough Times....
The recent global financial crisis affected different businesses in different ways. However, regardless of your business type, it probably means, even if only temporarily, that many consumers may have reigned in their spending & investors may still be cautious about investing in some businesses, especially in new, low-profit, or slow return ventures, or worse - those needing to re-finance due to hardship.
So how do you counteract this situation until things have improved?
Some suggestions are;
1. Maximize your customer reach:
The more potential customers you can reach, the more likely you are to maintain (or even increase) your sales targets. Try to increase your Advertising & Marketing (exposure) whilst at the same time decreasing or spending the same outlay.
One way of achieving this is through Joint Venture Partnerships with other e-businesses - a good place to look might be some of your suppliers or even your customers. This form of marketing is ideal if you select your JV partner carefully, and it can be beneficial to both parties.
2. Reduce costs where possible:
Look for ways you can reduce your costs, without compromising your service or quality, etc, such as finding a cheaper supplier, changing your marketing methods, looking for open-source software alternatives etc - "Open Office" is a great free alternative to Microsoft's Office, for example, and if your business requires multiple computers all with Word Processors, Spreadsheets etc installed, then the savings from using a free open source alternative can be quite considerable.
3. Find new ways to entice your customers to buy once you've reached them:
Entice visitors to buy from your site by ie: offering them FREE products if they purchase X product, offer discounts for any sales over X amount or for multiple sales, etc. Tempting your visitors with time-limited offers can be a great way to get them to commit to buying.
4. Try implementing some strategies to tempt customers to buy even more:
Multiple sales, or "up-selling" is a great way to increase sales and your business's bottom line. Find products you can up-sell to your customers that compliment your current products, or offer them discounts if they purchase multiple products, add-on products etc. Look for anything you can sell in bundles too. This type of sales strategy can make a huge difference to your overall sales budget & turnover.
5. And finally, for new e-businesses seeking investment:
- Study what investors & Venture Capitalists are looking for when investing in your type of business or niche.You can find some clues by reading up on how other similar businesses (or even your competitors) have already gained VC investment. You need to look at recent funding news articles though, as things may have changed since the global financial crisis, and you should also look for local examples too - Different countries may have different recoveries or even different investment priorities
- Research what the Venture Capitalists / Investors that you are approaching require from proposals / business plans submitted to them - some very prominent VC's actually do not want a huge business plan. They do however usually want a brief introduction in writing (that outlines both your business/idea and also you and your background etc), a brief plan with financials, & a PowerPoint presentation or some other form of visual presentation which quickly gives them an overview of the product or concept.
Visual presentations can easily show them what it is you are trying to convey without the VC's needing to read through a stack of information - remember, they are busy people, and you are one of many seeking their help. Oh, and one other factor to remember is that to attract VC's or investors interest it will also need to have lots of potential for making lots of money........
- And don't forget to look at ways you can make your business or idea more enticing for VC's or investors - are there any other ways you can make it more profitable?, or other markets (especially Niche) that your business or business idea could attract?, etc.
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