3 Tips To Be Smarter In Your Business

Everyone has their own opinion on how to work smarter and be smarter with their small business. We all try different methods, process and systems to get that little bit more each day, but how many really work. Here are 3 small business owners who have submitted what they think are the most important aspects to build their business.

Invest time to train When trying to meet a deadline for a course, my wife offered to help and I was reluctant at first. She is the type to ask lots of questions so she can do the work. The problem here is if she's asking questions, then I'm not doing my work which is ineffective.

My solution was getting her to write her questions and answer in blocks. I also realised if you invest some time in teaching people at the start, you will increase your productivity. It might take longer at the beginning but you will save time in the future.

Invest time on your business I would suggest investing time in your business. As small operators, we have a tendency to 'work in' our business rather than 'work on' our business.

Although they are subtle differences, it's very important to do both roles in a balanced manner. You have to service your clients and 'work in' your business, there is no denying it - and probably no money if you don't do this.

At the same time, it's also a key strategy to growing your business to actually work on growing it. Review your current operations, advertising campaigns, costs etc. Spend time researching competitors, new advertising mediums, reading books on related topics - sometimes even a totally different topic can give you new perspective on your business.

Go to a networking seminar, or business meeting - Even if it's during work hours. Spend money on developing yourself (as you would an employee). Force yourself to take time to focus on different parts of the business - rather than just taking calls and replying to emails (in my scenario). It's amazing how things just work out when you start taking the steps.

Stop chasing new customers More customers and more sales do not necessarily mean your bottom line will be better off...profitable growth should be the goal of any business.

However, you cannot achieve profitable growth in your business without first establishing that you are in fact profitable. Attracting more leads or closing more sales may not be enough -the costs and efficiencies in your business change every day and this means that you must constantly monitor and measure where you are at and take appropriate action. Focusing solely on customers and sales (by spending too much money and time on networking and marketing) is a bit like spending 100% of your time practicing your serve while neglecting to watch the scoreboard, analyse the strategy of your competitors and practice your returns.

Break-even is one of the most simple and powerful calculations that you can use each month to measure and enhance your profitability. A company is said to break-even for a period (usually a month) when its sales revenue catches up to its costs. Specifically, accountants talk about break-even as the point where fixed costs (rent, salaries, etc.) are matched by gross profit margin (sales revenue minus COGS). Therefore, it follows that break-even with profit is the point in the month where you cover all of your fixed and variable costs and start making your desired profit target.

Remember, if you are in business and you are not running a charity, the goal is profitable growth. In order to achieve profit, you in fact have to plan for and measure it.

Do you have any tips you could add, leave us a comment below


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Michael Griffiths is the CEO and Founder of My Small Business Marketing Guru. Helping small business owners generate more leads, clients and increase profits with website creation, search engine optimisation and online marketing strategies. To get your free black mask marketing resources and DVDs please visit http://www.mysmallbusinessmarketingguru.com.au