Did you know that half of all small businesses don’t make it past their first five years in business?
While many people believe that they will be able to maintain profitable businesses to start with, a lot of them find out that within a couple of years, their business is not bringing in the income they hoped it would.
Most profitable small businesses know that in order to outlast the competition, they have to be strategic and organized right from the beginning.
But what does it take to manage a profitable business? And how can you ensure that your small business lasts through the COVID era and beyond?
Read on for five tips to run your most profitable business possible.
1. Choose the Right Kind of Business
The key to success in creating a profitable business lies in building a solid foundation for yourself. The COVID-19 pandemic has changed consumer behaviors for the indefinite future. People have especially changed when and how they’re willing to gather in in-person spaces.
While a restaurant or a coworking space might have been a wise business choice before the pandemic, now those particular business ventures are quite risky.
To manage the amount of risk you’re taking on with your business, consider opening a takeout restaurant, an outdoor exercise space, or another business that allows for social distancing if need be.
2. Cultivate a Strong Online Presence
In the last year and a half, consumers have leaned into online shopping, entertainment streaming, and utilizing social media platforms. If you want to see success with your business, you’ll need to meet your customers where they’re at.
This means cultivating a strong online presence. You need an inviting website that’s easy to use. If you sell products, consider offering an online shopping option right from the beginning.
And of course, craft engaging and brand-aligned social media posts. In addition to creating your own content on social media, be sure to engage with your followers and enter into conversations with other individuals and brands in your industry.
3. Communicate With Your Customers
At the end of the day, all customers just want to feel heard and valued.
It’s easy to make time for your customers when they’re saying lovely things about you and your business. It’s harder to do so when they have complaints. However, meeting this feedback head-on is the only way to resolve conflicts and to build rapport for your brand.
While the reasons why consumers dispute charges or leave negative reviews can vary, always remember that this is energy and feedback that is being freely offered to you. It’s up to you to decide how you will respond.
4. Invest in Human Resources
Savvy business owners have realized that their most valuable resources are their people. If you want to have the most profitable business possible, make sure that your employees are taken care of.
Offer benefits when you can, and provide flexible working arrangements whenever possible. Give your managers the training to help them support their direct reports both professionally and personally. If you don’t do these things, you run the risk of having your employees leave for a company that will.
5. Be Uniquely You
Finally, most profitable small businesses have learned that they will always have competitors. You need to craft a brand and a purpose for your company that sets it apart from the rest.
If you are a solo entrepreneur or a founder of a startup, highlight the personal experience that led you to start your company. Lean into authenticity and personal connection, and your company will be miles ahead of the rest.
More Advice for Building a Profitable Business
Follow these tips, and you’ll be well on your way to building a profitable business in the COVID era.
Looking for more advice on how to start and operate a business profitably? Take a look at our other business articles.