Once you have established your small business and it’s running like a well-oiled machine, it’s time to think about how you can improve its profitability with smart treks here and there. Decide where your time is best spent and what processes need automating to improve profitability.  

Focus on High-Value Activity

When you are running a small business, you need to understand what your time is worth. Do you want to spend a lot of your time on payroll and accounting, or is it more profitable for your business if you focus on marketing efforts and driving results? Find the true value of your time. 

When you understand the true value of your small business activities, you can start making decisions that influence the profitability of the company. For instance, invest in software to run your accounts and spend more time on marketing to drive profits and improve your bottom line. 

Invest in Branded Apps

Almost everyone has a smartphone these days, which means you need to cater to your mobile customers regardless of what kind of business you operate. What you need is a mobile-optimized website and a branded app that provides more accessibility to customers. 

But branded apps can do a lot more than that! If you run a restaurant business, for instance, your customers can benefit from digital menu ordering, which allows them to order from your menu conveniently wherever they are. Some apps charge a commission, but this one doesn’t. 

Automate Whenever possible 

When you audit your business and decide on the true value of your time, chances are you will identify areas of your business that are time-consuming. Often, these involve repetitive tasks such as email marketing, accounting, social media, and analytics. There is a software solution.

These days software is available as Software as a Service (SaaS), which doesn’t require any upfront costs or software installation. Simply visit the website and sign up for a subscription; you can then start using the software to automate your business processes and grow the business.  

Analyze Your Financials

Needless to say, you need to keep your financials as tight as possible to ensure that your business remains profitable. The hard task is setting everything up, but once you have your accounting in order and your processes automated, it’s simply a case of monitoring things. 

Make sure you have a centralized dashboard where you can see the ups and downs of your small business financials across the month; this gives you a broad idea of how well your business is performing and what areas you need to focus on more to improve the bottom line.  

Get Your Pricing Right

Pricing is a key area of running a small business; you need to get value for your product at a price point that is acceptable to the market. But product pricing is not the only thing you need to keep your eye on, you will have to pay suppliers and vendors regularly, and they can also change their prices, so monitor these prices and decide whether vendors are still viable.