Skip navigation

Want to make more money? Well, step right up. There are no shortages of articles, systems, podcasts, videos, infomercials, webinars, books, and schemes all designed to show you how to do just that. If it’s not someone sharing the latest and greatest multilevel marketing organization, it’s someone showing you how to quickly buy and flip real estate.

 

Do some of these ideas work? Sure. But, as you well know by now, if something sounds too good to be true, it usually is. Especially when it comes to business, the hard truth is that there are not many shortcuts. Business success and growth usually takes hard work and persistence. Let me suggest that if you are in business for yourself, there are really only four ways to make more money:

 

1. Sell more: The bottom line is that you need to sell more of something to make more money. If you are a business owner, you don’t need someone to tell you that or to try and sell you his or her wares: You already have products and services to sell.


Steve-Strauss--in-article-Medium.png

 

So the first trick is to expand the business you already have. There are a couple of ways to do just that:

 

  • Get more customers: Easier said than done, you say? Maybe, but maybe not. They key to getting more traffic in the door is to expose your business to new people. Market more, make more, it is (almost) as simple as that.
  • Create a new division of your business: All great businesses figure out new products to sell and new services to offer. GE sells dishwashers yes, but it also sells jet engines and real estate financing. If you want to grow, you need to expand your offerings too.

 

2. Sell bigger: This can mean two things:

 

First, you can sell to bigger clients and customers – in other words, those with bigger budgets. For instance, if you primarily sell to consumers and other small businesses, you might find that selling your wares to corporations and government entities will yield bigger revenues.


Click here to read more articles from small business expert Steve Strauss

 

Second, you can sell products with a bigger profit margin. Even selling the same amount of such products will result in more net income. I love to share the story of the real estate agent who finally figured out that selling commercial buildings was about the same amount of work as selling houses, but that commercial buildings usually had an extra zero at the end of the asking price. The agent did the same work, but made a lot more money.

 

3. Spend less: The third way to increase your profits is to cut your overhead. If you haven’t done an audit of your business expenses recently, consider doing so now. There are probably many areas where you could cut some costs:

 

  • Insurance
  • Labor
  • Rent
  • Office supplies
  • Product line

 

The important thing to keep in mind when cutting your overhead is to do so intelligently. You certainly do not want to cut back too much on those areas that generate revenue – advertising, for example.

 

4. Invest: Of course, investing is always a smart individual wealth-building strategy, but in this case, I am talking about investing in your business.

 

When I was younger, I would see a business going through, say, a big remodel and I would always wonder why the owner would undertake such an expense when it did not seemingly affect the bottom line.

 

Except that it did of course.

 

By investing in your business, be it remodeling the premises, paying off debt or buying new equipment, you increase its equity value. Eventually, that equity will become even more valuable down the road.

 

So there you have it. If you want to make more money from your business, you’ll have to do it, in the words of the famous commercial, “The old fashioned way: You will have to earn it.”


About Steve Strauss

Steven D. Strauss is one of the world's leading experts on small business and is a lawyer, writer, and speaker. The senior small business columnist for USA Today, his Ask an Expert column is one of the most highly-syndicated business columns in the country. He is the best-selling author of 17 books, including his latest,The Small Business Bible, now out in a completely updated third edition. You can listen to his weekly podcast, Small Business Success, visit his new website TheSelfEmployed, and follow him on Twitter. © Steven D. Strauss.

http://www.smallbusinessonlinecommunity.bankofamerica.com/people/Steve%20Strauss/content

You can read more articles from Steve Strauss by clicking here

 





Selling_to_the_Government_body.jpgby Robert Lerose.

 

In the search for new customers and new sources of revenue, some small businesses forget that the largest buyer of goods and services in the world is the United States federal government. According to the General Services Administration, small businesses were awarded $83.1 billion in contracts in fiscal year 2013. Still, many businesses don't pursue government work because of the misperception that the paperwork and other hurdles are too daunting. While setting up your business to be eligible for government dollars does require following strict guidelines, there are many resources to make the process easier—and, as many businesses that sell to the government will attest, worth it.

 

Seek out help

"I often recommend that small businesses go to the Small Business Administration and to their local procurement technical assistance center first before they even start the process and have a conversation to determine if federal government contracting is where they want to be," says Stephanie Wilson-Coleman, senior advisor, office of small business utilization with the General Services Administration.

 

Next, Wilson-Coleman says that every business needs to get a DUNS Number for identification purposes and then choose a NAICS code that best describes the product or service they sell. With these classifications in place, the business can register online with the System for Award Management in order to interact with the government.

 

Federal agencies are required to put out quarterly reports of goods and services they intend to buy, which can help businesses decide which contracts to apply for. Wilson-Coleman recommends checking out these websites, along with her comments, to familiarize yourself with the federal procurement process:

 

Acquisition Central: "This will take you to the procurement forecasts of all the agencies, so you can get an idea of what solicitations or proposals you need to be geared up to respond to."

 

FedBizOpps: "A portal for advertising government-wide information about federal contract solicitations and awards that have an estimated value of $25,000 or more."

 

Federal Procurement Data System: "To see a history of how federal agencies buy certain things. For example, if you sell Widget A and you notice that these four agencies buy Widget A in April, then the procurement process could be six to nine months prior to April. That's when you can start to make contact with that federal agency so they'll know you're out there and you can get acquainted with the agency itself."

 

Small businesses must adhere to the dates in a solicitation—such as when the contracting officer can be questioned and the final date for submitting proposals—and to read the solicitation carefully. "In the beginning, I would encourage small businesses to limit their reach to one or two agencies," Wilson-Coleman says. "They need to give themselves the opportunity to learn how an agency works before they move to another agency which might work totally different."

 

Show your dedication

"The government is very risk-averse. When they get comfortable with organizations that have a track record of delivering, they tend to keep them around awhile," says Kevin Lancaster, CEO of Winvale, a Washington, DC-based firm that supports and advises government contractors.

 

Selling_to_the_Government_PQ.jpg

Still, Lancaster warns that securing a government contract is not an excuse to rest on your laurels. Small businesses should be proactive in providing exceptional service, getting to know procurement officers, and building dependable relationships. "That's how you'll expand your footprint within an agency. You become a trusted advisor and demonstrate that you're able to mitigate their risk," Lancaster says.

 

A simple but often overlooked way for a small business to show their openness for working with the government is to say so on their website. "These end-users and procurement officers do their research like everybody else," Lancaster explains. "Make sure you have at least a little callout or tab or an industry page that talks about government because you want to speak to your audience. They're looking for vendors that have a commitment to the space."

 

An alternative to direct solicitation of the government is to work with a reseller or subcontractor. Small businesses usually encounter less scrutiny of their operations and sometimes more flexibility in terms of pricing. "We can get our partners on our schedule within two to three weeks compared to three to 12 months if you're going after a schedule [yourself]," Lancaster says. "You have a broader sales reach and faster time to market going through a third party."

 

Be a PEST

Some small businesses are able to build their livelihood almost entirely on government contracts.

 

"Around 2003, my company was asked to join a group that was working on a Congressionally-mandated study to see if you could take industry best practices in medical case management, which I do, and apply it for civilian federal employees of the Army," says Lisa Firestone, CEO of Managed Care Advisors, a Bethesda, Maryland-based company that designs and manages compensation programs. "That's how I got my start. I saw this as an opportunity and an unmet demand and jumped on it."


Today government work accounts for about 90 percent of her company's revenue. To help other small businesses navigate government contracting, Firestone came up with a four-part strategy that she calls PEST:

 

Persistent: The sales cycle can be longer than in the commercial environment. Following up with key buyers and staying positive are paramount.

 

Education: "Understand the different types of contracting models and be aware of the avenues that exist for small business set-asides," Firestone says, such as contracts for women-owned businesses, HUB zones, and service-disabled veterans.

 

Specific: Focus on the specific product or service that you offer and show how it can adequately address the needs of the agency.

 

Transparency: "You need to show them your products and be able to prove what you do," Firestone says. "Be transparent about what you do and how you do it, especially in a proposal."

 

Surrounding yourself with advisors—accountants, lawyers—who understand government contracting can be a major advantage in navigating federal requirements over the long haul. "This was probably the biggest surprise, that I really needed to have advisors that understood the government," Firestone says. "But it's made a world of difference."

 

Filter Article

By tag: