45 Small Business Tips that Will Transform Your Profits

Approximately 20% of small businesses fail within their first year of operation - and the percentages increase as the years go on.

But there are plenty of things you can do to increase your odds of success. Whether you’re just starting out or have been in business for a few years, you can take advantage of these practical tips for small business owners to keep the profits rolling in. 

Tip #1 - Set up and verify your Google Business Profile.

The most important (and simple) thing you can do is set up and verify your Google Business Profile. A Google Business Profile is essentially an online business card that appears when customers search for your business or your type of business on Google or Google Maps. 

A Google Business Profile legitimizes your business and makes it easier for customers to find you and learn more about what you have to offer. It can also improve your search engine optimization (SEO) ranking to drive more traffic and, ultimately, more sales.

Tip #2 - Ask for reviews from every customer.

98% of consumers used the internet to find more information about local businesses in 2022. Online reviews are a big factor in shaping consumer behavior, which is what leads to profits. 

Source: GoSite Reviews

To take advantage of the power of online reviews, you can send follow-up emails or texts after a purchase or even ask in person. Be sure to make the process as easy and convenient as possible for the customer so they’re more likely to leave a review.

Tip #3 - Respond kindly and professionally to every customer review.

And it’s not just encouraging happy customers to leave reviews of their experience - you’ll want to respond to each and every review you can. Responding to reviews professionally and in a friendly manner can impact your business’s reputation and profits.

Source: GoSite Reviews

For positive reviews, you can end up building customer loyalty and reinforce that positive experience, whereas responding to negative reviews gives you an opportunity to turn a negative experience into a positive one.

Tip #4 - Commit a small amount of time every week to exploring technology that could help you accomplish more with less.

Being a small business owner makes it easy to get caught up in the day-to-day tasks and operations of your business. So, it can be extra beneficial to evaluate how you can use technology to help you accomplish more with less. This could involve project management software to track tasks and deadlines or implementing automated email marketing campaigns to reach customers in a more targeted way.

Tip #5 - Invest in a website that is SEO-friendly.

Great-looking websites are great only if they are built with Google algorithms in mind. That means having a web team who has your back when it comes to making sure every key page is easy to crawl, index, and track on Google Analytics.

Tip #6 - Learn enough about website analytics to know whether or not your website is working.

Your website is typically a customer’s first impression of you, so you’ll want to understand how to track and measure how well it's doing in order to increase profits. Website analytics are what will give you those insights, whether it’s bounce rates, page views, or conversion rates. That information could identify where your website may be falling short and where you should make the necessary changes.

Tip #7 - Be flexible. Things change, and every obstacle uncovers another opportunity.

Being adaptable is one of the best practices for small businesses. As the business world is constantly evolving, you’re bound to face unexpected challenges. If a particular service or marketing initiative isn’t performing as well as you had hoped, don’t be afraid to pivot and explore new offerings. 

Tip #8 - Never stop training yourself and your team on people skills.

Building and maintaining strong relationships with customers, clients, and even other businesses are key to the success of any business - and it’s where people skills come in. In 2018, 65 million people held jobs in which social skills were most important. You and your team should have ongoing development in skills like effective communication, active listening, empathy, conflict resolution, and customer service, to name a few.

Tip #9 - Prioritize making your business a great place to work.

Transforming your small business’s profits is also something that starts within. Happy employees are more productive and likely to provide great customer service, which can lead to increased profits.

Source: Madison Approach Staffing

Replacing an employee can cost you. Employees with annual salaries of $50,000 cost $16,0000 to replace, and the numbers increase the higher the salary. For small businesses, this is a significant expense that can easily be avoided by creating a great place to work.

Tip #10 - Look for ways to personalize your messaging, products, and services to your customers.

People are more likely to do business with companies that make an effort to understand that each customer has unique preferences and needs. 90% of U.S. consumers see marketing personalization as very or somewhat appealing, whether it’s customized recommendations or tailored marketing messages. 

For example, let’s say you run a home cleaning service. You could offer eco-friendly cleaning products for environmentally conscious clients or pet-friendly cleaning methods for households with pets. Personalizing your service will lead to a better customer experience and a greater likelihood of repeat business. 

Tip #11 - Remind customers to pay you.

Staying on top of payments is especially crucial for service businesses, like plumbers, electricians, and landscapers, as cash flow can be more unpredictable. Timely payments are integral to a healthy cash flow, and one way to ensure them is to send out regular reminders to customers about upcoming payments or past-due balances. You can do this via email, phone, or even automated software to keep track of unpaid invoices.

Source: PayNearMe

Research shows that 38% - 45% of consumers actually want to receive reminders when it comes to bills, whether it’s simply a reminder or one that comes with a link to pay.

Tip #12 - Remind customers of upcoming appointments.

No-shows can be a huge drain on your business, as they end up in lost revenue and wasted time that could’ve been spent servicing other customers. Implementing a system for reminding customers won’t just make sure customers remember their appointment; it also shows that you value their time - thus earning their loyalty.

Tip #13 - Text your customers instead of emailing them (especially for reminders, requests, and promotions). 

Text messaging is a powerful tool to leverage for improved customer engagement. Studies have shown that text messages have an open rate of 98%, compared to just 22% for emails. 

Source: Sendmode

Texts are a more personal and immediate form of communication, which makes them suitable for urgent matters such as sales or promotions. You can also use it to send appointment reminders or answer customer questions in real-time. This attentive and intimate service can help you increase customer lifetime value.

Tip #14 - Pick one type of content you can do well (blog, video, images, etc.), and publish that content consistently online.

With so many options available out there, choosing what type of content to focus on can be overwhelming. But this is precisely why it’s so important to pick one type of content to publish consistently online. Whether it's a blog, videos, or something else, consistency is what builds a loyal following.

Tip #15 - Look for ways to convert one-time customers into ongoing customers.

Retaining existing customers is a lot more cost-effective than converting one-time customers. Just a 5% increase in customer retention results in a profit increase of 25% to 95%. So, how can you convert one-time customers? Some of the ways you can do this include personalizing your experience, providing top-notch customer service, and offering a loyalty program that gives customers a reason to keep coming back.

Are you enjoying this blog? To join our newsletter, text BLOG to (833) 779-2627.

Tip #16 - Make it as easy as possible for your customers to find you, book you, and pay you.

Most customers in the digital age begin their search for services and products online, so your business needs to have a strong online presence. And with this online presence comes the expectation of convenience and simplicity when interacting with your business. Your website should be user-friendly and have an easy-to-use booking or payment system that offers a variety of payment options to accommodate customers.

Tip #17 - Give gifts, discounts, and free services to customers who send you referrals.

Customers acquired through referrals have a 37% higher retention rate, which is why rewarding them for their loyalty can be a great way to increase your profits. When existing customers refer their friends, family, and colleagues to your business, they’re essentially vouching for you and increasing your reach. That’s why you’ll want to incentivize this behavior by offering discounts or gifts to create a positive experience.

Tip #18 - Be gracious with every negative review.

Negative reviews can be tough to swallow, but they’re inevitable for any small business. How you respond to these reviews, however, can make all the difference. Rather than getting defensive or ignoring negative feedback, you should instead be gracious and take criticism as an opportunity to grow. Respond quickly and professionally, apologize for any shortcomings, and offer solutions to the issue.

Tip #19 - Develop and memorize 30-second, 60-second, and 5-minute elevator pitches for your business.

An elevator pitch is a concise and compelling summary of what your business does and sets itself apart from the competition. It serves to effectively communicate your value proposition to potential customers, investors, and partners in a matter of seconds - or minutes. Having pitches ready to go, whether it's a quick introduction or an in-depth overview, can give you a competitive edge.

Tip #20 - Make time to talk and listen carefully to your customers.

Don’t underestimate the power of a listening ear - customer feedback can help you tailor your services to their needs and provide insights into what’s working and what’s not. Consequently, you can use this to improve operations and processes and identify new opportunities you hadn’t thought of before.

Tip #21 - Offer multiple payment options, especially contactless payments.

Over 60% of the global population is expected to use digital wallets by 2026. With the rise of mobile wallets and contactless payments, customers expect to have more options than just cash or traditional credit card processing. When customers can pay the way they want, you increase your chances of closing a sale.

Tip #22 - Make time weekly to clean and organize your list of contacts.

A clean and well-organized contact list lets you more effectively target your marketing efforts and personalize your communication with customers. And on a more basic level, having accurate and up-to-date contact information can help you avoid sending promotions to the wrong address or contacting customers who have already opted out of receiving messages from your business.

Tip #23 - Work with other businesses that are similar to yours to plan events together.

Collaborate with other businesses that share a similar customer base by planning joint events and pooling your resources together. For instance, a landscaping company can partner with a home renovation company to host a backyard makeover event. This doesn’t just mutually increase profits but also provides customers with a one-stop shop for all their home improvement needs.

Tip #24 - Use things like reviews and customer testimonials to show that your business is trustworthy and reliable.

Positive reviews and testimonials can showcase your business’s reliability and expertise, all while providing social proof that persuades potential customers to choose you. Whether on your website, social media pages, or your Google Business Profile, it all works to demonstrate your track record of successful projects and satisfied clients.

Tip #25 - Look for ways to sample your product or service to customers for free.

Free samples are essentially a risk-free opportunity for customers to experience what you have to offer. It’s a way to build brand loyalty and for customers to see the value of your product or service firsthand. Consider offering samples at events or in-store or providing trial periods for services.

Tip #26 - Invest time and money into brand identity (logo, colors, fonts, mission statement, etc.).

Brand identity encompasses everything from your logo and color scheme to your mission statement and tone of voice. While crafting one may require some initial investment, it can help create a consistent and memorable image for your business in the long run.

Tip #27 - Partner with social media influencers who are popular with your customers.

Influencers often have large audiences that you can tap into, where you can reach a wider demographic. As long as you choose influencers whose values align with your brand and whose followers match your target audience, it can be a cost-effective way to reach new customers and earn some high-value social proof.

Tip #28 - Set up online profiles for voice search. 

With 72% of consumers using voice search tools like Alexa, Siri, Cortana, and Google Assistant, optimizing your online profiles for voice search can prove useful. You can do this by including natural language keywords and phrases in your profiles that are likely to be used in voice search queries. This can lead to more website traffic, putting you one step ahead of the competition.

Tip #29 - Experiment with ChatGPT and other AI tools to learn more and streamline your operations.

AI tools work to automate routine tasks, summarize complex concepts, and provide insights to transform your workflow.

ChatGPT can craft content for your business and automate customer support inquiries, freeing up valuable time for you to focus on other profit-making aspects of your business.

Tip #30 - Experiment with Google, Facebook, TikTok, and Instagram ads to get new customers.

Most social media platforms have a range of advertising options that let you target specific audiences. By coupling these useful features with compelling ad copy and imagery, you might be able to reach potential customers who may not have otherwise discovered your business.

Tip #31 - Offer seasonal promotions or discounts to attract new customers during slow seasons.

Especially for certain service businesses, off-peak times can mean fewer profits and slow business. Limited-time offers and promotions can create a sense of urgency that encourages customers to take advantage of the deal before it expires. 

Tip #32 - Take time to understand SEO basics and boost your online presence.

Having a robust website is one thing, but customers also need to be able to easily find you online. That’s why learning SEO tactics such as website optimization, building high-quality backlinks, and keyword research are bound to come in handy so you can pop up on the first page of Google.

Tip #33 - Provide detailed and itemized quotes for your services to build trust and transparency with your customers.

Breaking down the cost of each service shows your customers that you value their time and money but that you’re also confident in the value you’re providing. Providing detailed quotes can help prevent any misunderstandings or disagreements about pricing, further strengthening the relationship between you and your customers.

Source: GoSite

The best way to do this is to use an online platform where you can easily create and send quotes and convert them into invoices.

Tip #34 - Consider offering financing options for high-cost products and services.

Not everyone has the cash on hand to pay for a big-ticket service or item upfront, but they may be willing to finance the purchase over time. “Buy now, pay later” options give customers the flexibility to make purchases they might not be able to afford right away. 60% of consumers say they’ve used one of these services before, proving it to be popular.

Tip #35 - Invest in professional photography and video to showcase your products and services.

High-quality visuals showcase your business in the best possible light and help to create a more professional and trustworthy image for your brand. In 2019, a Google Consumer Survey found 50% of online shoppers say images helped them decide what to buy. Consumers are more visually-oriented than ever, so it’s essential to invest in eye-catching content.

Tip #36 - Teach your team to recommend relevant products and services to customers.

Encourage your team to get to know the customer’s needs and to suggest complementary products or services that could enhance their experience. This could be as simple as offering a water softener installation if a customer calls in for a plumbing repair. You then increase the value of the initial sale and demonstrate investment in the customer’s satisfaction.

Tip #37 - Educate your audience to make them smarter buyers.

Educating customers could involve creating content such as blog posts, webinars, and videos that cover topics relevant to your niche. These helpful tips and guidance can empower them to feel confident in their purchases and lead to more satisfied customers.

Tip #38 - Spend money on quality equipment and tools to make your work better and faster.

High-quality equipment often helps you work faster and more efficiently and leads to better-quality results for customers. If you’re a carpenter, purchasing a top-of-the-line saw or drill can improve the precision and speed of your work, leading to increased referrals.

Tip #39 - Pay attention to compliance standards relevant to your industry.

Running a successful small business requires you to stay on top of compliance standards. Neglecting compliance can result in unnecessary fines or even legal trouble, but following industry regulations also boosts customer trust and enhances your overall reputation in the market.

Are you enjoying this blog? To join our newsletter, text BLOG to (833) 779-2627.

Tip #40 - Respect customer privacy and adhere to privacy laws.

Customers are increasingly aware of their privacy rights, and 48% have stopped using a service due to privacy concerns. Consumers are more likely to do business with companies that prioritize their privacy. You can demonstrate this by obtaining consent for data collection, securing sensitive information, and providing transparent privacy policies.

Tip #41 - Create before-and-after images and videos to share online.

Before-and-after images and videos showcase the unique value proposition of your services as a small business.

These visuals provide a fantastic way to demonstrate the transformation that your business can bring to your customers’ lives. They can be incredibly creative and versatile, ranging from side-by-side comparisons to timelapse videos.

Tip #42 - Invest in professional training and certifications to continuously upgrade your skills.

Investing in professional training benefits both your business and the customer, showing that you are committed to excellence, all while enhancing your skill set. From HVAC repair to woodworking, improved skills and knowledge can translate to repeat business and an expanded customer base.

Tip #43 - Add customer engagement widgets to your website and Google Business profile.

Customer engagement widgets are a simple way to transform your profits. These widgets make it easy for people to engage with your business online.

Source: GoSite

Booking widgets, for example, are useful for customers to get an overview of your services, their availability, and to instantly make a booking without having to pick up the phone or send an email.

Tip #44 - Offer the option to chat on your website.

A chat feature provides customers with an immediate and convenient way to connect with you. Imagine a customer has a plumbing issue and is browsing your plumbing website late at night. If they have a question about pricing for a specific service, they can simply get their question answered without having to wait until business hours.

Tip #45 - Network at industry trade shows and local events.

Trade shows and events are the perfect places to network with other professionals in your industry, showcase your business, and build relationships with potential customers. It’s an ideal way to meet people face-to-face and strike up conversations with other attendees. Through in-person events, you can learn from other businesses and garner new leads.

To Sum Up

Implementing just a few of these tips for small business owners will have you well on your way to transforming your profits and achieving the success you've been dreaming of. Success takes hard work, dedication, and a willingness to continuously learn and adapt. But with these tips as your guide, you’ll be on the right track in no time.