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2019

As a small business owner, you want to make sure your business is as profitable as possible. But higher profit margins don’t just happen. Instead of hoping for good fortune to bring you more profit, make these smart moves to keep more of the money your business makes.

 

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1. Know your profit margins. “What gets measured, gets managed” is a business truism. Knowing what your margins are is essential to improving them and will allow you to accurately calculate how taking actions such as raising prices will affect your margins.

 

2. Look for places to cut costs. Focus on costs that don’t add value for your customers. Start by looking for wasted money, such as memberships to groups you no longer attend or excessive spending on office supplies. Cutting even small unnecessary costs over time can make a big difference.

 

3. Raise prices. It’s the easiest and fastest way to boost profits. You’d be surprised at the difference a price increase of 10 percent, 5 percent or even 3 percent can make to your margins—and most customers won’t even notice.

 

4. Streamline your payment processing and invoicing. Invoicing customers as soon as possible avoids payment delays so you get your money faster and it can work harder for you.

 

5. Negotiate with your vendors. Can you get lower prices from your vendors—perhaps by paying early or paying in cash? Finding a win-win arrangement with vendors can mean more dollars in your pocket.

 

6. Reassess insurance costs. Shop around for health insurance, business insurance and vehicle insurance. See if increasing your deductible or adjusting your coverage will reduce your premiums.

 

7. Consider relocating your business. Can you move to a more affordable location? Could you run your business from home and have your employees work remotely?

 

8. Reduce excess inventory. The cost of carrying inventory that’s past its prime can eat up your profits. Consider selling it to liquidators or posting it on sites like eBay.

 

9. Track the cost of customer acquisition and work to reduce it. Monitor the results of your marketing and advertising activities so you can focus on those that deliver the most bang for your buck.

 

10. Identify high-value customers and focus on them. Use customer relationship management (CRM) or customer loyalty software to pinpoint which customers spend the most with your business. Give them the VIP treatment and see if you can get them to spend even more.

 

11. Get existing customers to buy more and more often. Acquiring new customers is more costly and time-consuming than convincing existing customers to buy from you again. Develop a marketing campaign to turn first-time buyers into loyal customers.

 

12. Narrow your target customer focus. If you try to be everything to everyone, your business will lack an identity. Instead, laser-focus on your ideal target customer and how to deliver value to them. You may have fewer customers, but you’ll sell more to those you have.

 

13. Upsell and cross-sell. Don’t stop with closing the sale. Offer related products or services, warranties, service contracts and other value-adds that increase your profits.

 

14. Set up automatic re-ordering or subscription options for customers. If you can make buying more convenient for consumers, they are more likely to become loyal customers.

 

15. Spend your time where it matters. As a small business owner, your time is valuable. Focus your efforts on profit-generating activities, not on managing minutiae.

 

16. Look for places to automate your business. For example, using marketing automation software to respond to leads or a virtual assistant to schedule meetings can free up time for you and your team have more time to focus on profit-generating work.

 

17. When an employee quits, don’t fill the position right away. See if you can automate the work or distribute it among remaining staff members.

 

Increasing your profitability is a never-ending battle. Stay on top of your business’s cash flowand watch your profit margins closely. Then you’ll be able to spot new opportunities to bring home even more profit.

 

 

About Rieva Lesonsky

 

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Rieva Lesonsky is CEO and Co-founder of GrowBiz Media, a custom content and media company focusing on small business and entrepreneurship, and the blog SmallBizDaily.com. A nationally known speaker and authority on entrepreneurship, Rieva has been covering America’s entrepreneurs for more than 30 years. Before co-founding GrowBiz Media, Lesonsky was the long-time Editorial Director of Entrepreneur Magazine. Lesonsky has appeared on hundreds of radio shows and numerous local and national television programs, including the Today Show, Good Morning America, CNN, The Martha Stewart Show and Oprah.

 

Lesonsky regularly writes about small business for numerous websites and for corporations targeting entrepreneurs. Many organizations have recognized Lesonsky for her tireless devotion to helping entrepreneurs. She served on the Small Business Administration’s National Advisory Council for six years, was honored by the SBA as a Small Business Media Advocate and a Woman in Business Advocate, and received the prestigious Lou Campanelli award from SCORE. She is a long-time member of the Business Journalists Hall of Fame.

 

Web: www.growbizmedia.com or Twitter: @Rieva

You can read more articles from Rieva Lesonsky by clicking here

 

Bank of America, N.A. engages with Rieva Lesonsky to provide informational materials for your discussion or review purposes only. Rieva Lesonsky is a registered trademark, used pursuant to license. The third parties within articles are used under license from Rieva Lesonsky. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.

 

Bank of America, N.A. Member FDIC. ©2018 Bank of America Corporation

Did you know that food is the No. 1 most engaging topic when it comes to video content on Facebook? There are quite a few things we can all learn from these drool-worthy posts about how to drive engagement, whether you run a restaurant, sell food, or, frankly, other goods.

 

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Our friends at BuzzSumo conducted a study of over 100 million Facebook video posts and discovered that videos related to food generated 250 percent more engagement than other content types.

 

In another study of over 777 million Facebook posts, BuzzSumo found video posts get at least 59 percent more engagement than all other post types. Although photos are widely accepted by marketers to be one of the most successful post types, video outperformed photos by 73 percent.

 

Create short, compelling videos

 

I cannot stress this enough: Facebook is determined to become a destination ‘digital streaming television platform,’ competing with YouTube, Amazon Prime, Hulu, and the likes. This means Facebook is placing extreme emphasis on video content throughout the platform.

 

The good news for marketers: we can really take advantage of this growing trend.

 

Facebook users, in particular, have short attention spans. The ideal length Facebook recommends for a teaser video is 15 seconds if it’s being used for ads or organic content that you intend to boost. Otherwise, longer videos of between 3 and 5 minutes work well, per research by BuzzSumo.

 

Here’s a great example by the Eiffel Tower Restaurant in Las Vegas -- showcasing their signature Chocolate Praline Cake with a call-to-action to make a reservation. A video like this can be shot with a dSLR camera and inexpensive lighting. Or, you can just use your smartphone and make sure you place the dish under good lighting. Tips from food videos, like optimizing video length and taking clear, beautiful footage, can be applied to other types of content to improve engagement.

 

Related:

 

Promote your message to the right audience at the right time

 

With Facebook organic reach at an average of 1 to 6 percent,  you’ll definitely want to allocate an advertising budget to ensure your message reaches your target demographic. Ideally, you should utilize Facebook Ads Manager (or Business Manager). Otherwise, the Boost button is the simplest way to get started.

 

I’ve often said that local businesses can reach their audiences much easier using Facebook because you’re not trying to reach the whole world. You’re drilling deep into very specific geo-targeted locations using zip codes and other parameters. Facebook makes it really easy to do so.

 

In addition, I suggest trying a feature in Ads Manager called ‘Dayparting’ where your ads will show up across the Facebook family of apps and services (which includes Messenger and Instagram), during specific times of the day and days of the week. This is super handy for when your business offers a timely discount such as a restaurant’s special on brunch, lunch, or dinner.

 

Related:

 

Market to the third visit

 

I had the great pleasure of keynoting a special event for my client, Lettuce Entertain You Restaurants. In researching my talk, I listened to this fascinating interview on the Entreleadership Podcast of Jon Taffer, host of Bar Rescue.

 

In the interview, Taffer describes what he calls, “marketing to the third visit.” Check out these stats:

 

      • If somebody comes to a restaurant for the first time and has a great experience, the statistical likelihood of them returning for a second visit is less than 40 percent.
      • Say that person comes back a second time and has another flawless experience, the statistical likelihood of them returning for a third visit is about 42-43 percent.
      • But the third time a customer returns to your restaurant, the statistical likelihood of them returning for a fourth time increases to over 70 percent.

 

So, Taffer says the secret of smart restaurateurs is to market to three visits, not one. Three visits get the customer into a lifecycle. Make sure your restaurant staff is trained to greet and identify first-time customers differently. They get a special invitation to come back again. Listen to the podcast interview for Taffer’s full strategy. It’s brilliant!

(I’ve been a big fan of Dave Ramsey’s Entreleadership Podcast for many years and highly recommend small business owners subscribe! Listen to my own interview on Supercharging Your Facebook Marketing.)

 

And, if your target audience includes a younger demographic, then check out this great nugget from the print version of this Modern Trader magazine article about the restaurant industry and technology:

 

“The 100 million people who make up Generation Y, Millennials and Z need to eat and want something different than their parents… …the battlefield is constantly changing, and there is a lot at stake. The outlook for the restaurant industry is positive for those who are prepared to strategically fight with the right tools. Technology will be the driver of success.”

 

These 100 million young folks spend an inordinate amount of time on their phones. Now is the time to ensure your messaging gets in front of them with thumb-stopping content that inspires them to come in (and maybe even bring a friend!)

 

Related:

 

About Mari Smith

 

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Often referred to as “the Queen of Facebook,” Mari Smith is considered one of the world’s foremost experts on Facebook marketing and social media. She is a Forbes’ Top Social Media Power Influencer, author of The New Relationship Marketing and coauthor of Facebook Marketing: An Hour A Day. Forbes recently described Mari as, “… the preeminent Facebook expert. Even Facebook asks for her help.” She is a recognized Facebook Partner; Facebook headhunted and hired Mari to lead the Boost Your Business series of live events across the US. Mari is an in-demand speaker, and travels the world to keynote and train at major events.

 

Her digital marketing agency provides professional speaking, training and consulting services on Facebook and Instagram marketing best practices for Fortune 500 companies, brands, SMBs and direct sales organizations. Mari is also an expert webinar and live video broadcast host, and she serves as Brand Ambassador for numerous leading global companies.

 

Web: Mari Smith  or Twitter: @MariSmith

 

Bank of America, N.A. engages with Mari Smith to provide informational materials for your discussion or review purposes only. Mari Smith is a registered trademark, used pursuant to license. The third parties within articles are used under license from Mari Smith. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.

Every day, more than 2 billion people are active on at least one of the Facebook family of apps and services, which includes Facebook, Instagram, Messenger and WhatsApp.

 

These 2 billion people are scrolling through their feeds, inboxes and Stories. Your job as a small business owner is to get your content in front of the exact right audience and stop them in their tracks. You want your ads to be absolutely ‘thumb-stopping!’

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My three secrets to creating irresistible ads:

 

  1. Refine your audience targeting.
  2. Use compelling messages and creative.
  3. Choose the right placement.

 

Let’s break them down.

 

1. Refine your audience targeting

 

Let’s face it, you can have the most amazing ad with gorgeous creative and a super-compelling offer, but, if it’s placed in front of the wrong target audience, your ad will fall on deaf ears and you won’t get the results you want. In fact, you could even yield negative results with the wrong audience reporting your ad as spam.

 

I see this time and again as I study the ads across the Facebook app ecosystem. I see ads shown to me for something that is totally irrelevant.

 

Refining your target audience before launching your ads can make all the difference between a very successful ad campaign or a total dud.

 

Tap into the power of Facebook Audience Insights to define your target demographic. Here’s a helpful article by AdEspresso: How To Find The Best Audiences On Facebook.

 

RELATED CONTENT The Power of Facebook – with Mari Smith (Video)

 

2. Use compelling messages and creative

 

So, here’s where we get to the ‘irresistible’ part. With so much noise across all social networks, it’s important that you find a way to cut through the noise to capture potential clients’ attention. We must also recognize that the nature of social media content has shortened attention spans, so your imagery needs to be vibrant and your text brief.

 

Use vibrant images

 

It’s true that a picture says a thousand words. Instagram, in particular, is an entirely visual platform. Keep text overlay to a minimum and say what you need to say in the description/caption of your ad.

 

Embrace short-form video ads

 

Facebook recommends 5-15 seconds for the ideal video ad. Facebook’s studies have shown that retention rates start to taper off even with a 15-second video. But that’s the ideal max length for both ads and organic videos. I call these ‘teaser’ videos, which are ideal for driving traffic to your blog posts, for example.

 

I recommend creating 15-second videos in square format with a short description and publishing to your Facebook Business Page as an organic post. Then turn the post into an ad (using the Boost button or Ads Manager). Once you’re in the process of boosting the post you’ll have the option to add a call to action. Put the URL of your blog post or squeeze page in there and start driving traffic to your site.

 

I recently hosted an educational Facebook Live with my friends at Wave.video to teach this process and you can find that here. (Wave.video just released a free forever plan with no watermark for 15-second videos. Plus they have several very affordable plans with more features for small business owners). See this helpful article - Facebook Video Ads: 10 Examples to Help You Beat Your Competition

 

You’ll also want to have the Facebook Pixel installed on your website in order to retarget visitors with other ads.

 

It’s always worth giving Lead Ads a try for conversion-level results. This is a great tutorial: How to Create Jaw-Dropping Facebook Lead Ads That Convert

 

3. Choose the right placement.

 

Small businesses can create ads using Facebook’s Ads Manager (or Business Manager). When you leave the default setting for automatic placements, Facebook’s algorithms choose the most optimized platforms for your ads.

 

“Use automatic placements to maximize your budget and help show your ads to more people. Facebook's delivery system will allocate your ad set's budget across multiple placements based on where they're likely to perform best.”

 

Learn more about automatic vs. manual placement here.

 

Yes, we’re talking predominantly about Facebook ads in this article. However, most advertisers tend to leave the automatic placements enabled by default. You may think you’re just advertising on Facebook, but if the placement option is selected your ads may be showing up on/in the following places:

 

  • The Facebook feed
  • Facebook videos (as pre-roll ads)
  • Facebook Marketplace
  • The Instagram feed
  • Stories on Instagram, Facebook, and Messenger
  • Messenger home screen
  • Throughout Facebook’s Audience Network

 

To clarify on that last placement, Audience Network allows advertisers to extend Facebook and Instagram campaigns across the internet - onto thousands of high-quality websites and apps. People spend a lot of their time on Facebook and Instagram. But they are also spending time on other apps and sites. Audience Network helps advertisers reach more of the people they care about in the other places where they're spending their time.

Place Stories ads on both Instagram & Facebook

 

There are currently 500M daily active users on Instagram Stories and 300M on Facebook, and you can tap into this highly engaged audience.

 

RELATED CONTENT: Instagram and Facebook Story Ads: How to Make Stories Work for your Small Business

 

Many advertisers may not even realize they are already placing ads into the Stories feed on both Facebook and Instagram because of the automatic placement feature mentioned above.

 

Although Facebook’s delivery system does do the hard work for you, it’s worth it to spend a little extra time and create individual ads for placement in the Instagram Stories format, for example.

 

To really optimize your Stories ads, it’s best to create for the native environment. And that is 9:16 vertical video – it is full screen and immersive. Strive for big bold creative, thumb-stopping images and creative stickers and GIFs.

 

Utilizing all of the steps above can help make sure the dollars you’re putting toward promoting your small business on social media are working as hard for you as possible.

 

You can read more articles from Mari Smith by clicking here

 

About Mari Smith

 

mari_0362xFACE_preview.jpg

Often referred to as “the Queen of Facebook,” Mari Smith is considered one of the world’s foremost experts on Facebook marketing and social media. She is a Forbes’ Top Social Media Power Influencer, author of The New Relationship Marketing and coauthor of Facebook Marketing: An Hour A Day. Forbes recently described Mari as, “… the preeminent Facebook expert. Even Facebook asks for her help.” She is a recognized Facebook Partner; Facebook headhunted and hired Mari to lead the Boost Your Business series of live events across the US. Mari is an in-demand speaker, and travels the world to keynote and train at major events.

 

Her digital marketing agency provides professional speaking, training and consulting services on Facebook and Instagram marketing best practices for Fortune 500 companies, brands, SMBs and direct sales organizations. Mari is also an expert webinar and live video broadcast host, and she serves as Brand Ambassador for numerous leading global companies.

 

Web: Mari Smith  or Twitter: @MariSmith

 

Bank of America, N.A. engages with Mari Smith to provide informational materials for your discussion or review purposes only. Mari Smith is a registered trademark, used pursuant to license. The third parties within articles are used under license from Mari Smith. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.

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