Six practical ways to grow your business in 2011

1. Get online

The beauty of a well-designed website is that it can market your business for you 24/7, while making use of e-commerce allows you to trade with the rest of the world at any time of the day or night.

Getting your businesses online, or making more use of the Internet to market your business and drive sales, is a cost-effective way to increase turnover.

Research for the latest MYOB Business Monitor found that only 34% of New Zealand businesses have a website and just 20% make use of e-commerce. MYOB general manager, Julian Smith, says businesses that have a website and trade online perform better and generate more revenue than businesses without a website. This highlights an opportunity for Kiwi businesses to become more engaged in the global online community.

Social networks have also opened a new, affordable means for small businesses to reach thousands of potential customers. MYOB found that only 14% of Kiwi businesses are currently using social media to support their business aims, and 12% use blogs or online newsletters. This suggests large and untapped potential to make better use of social media to find and interact with potential customers.

Whatever the level of your business’s online presence and activity, upping this with a structured online plan is almost guaranteed to boost awareness and sales. Develop or refine your online strategy to make better use of:

• Your website. Read about how to develop a website for your business, or how to make the most of your website.
• E-commerce opportunities. Find out more about using e-commerce.
• Blogging.
• Electronic newsletters. Read about email marketing.
• Social Media like Twitter and Facebook. Find out more about how to use online social media.

2. Focus on margins

It is easy for your business to get caught up in chasing sales, thinking that this equates to making more profit. But it’s highly likely that some of the services and products that business sells are more profitable than others.

It makes sense to focus your sales on items that bring in more profit, so take time out before the new year to work out the profit margins you earn on each sale. You might be surprised to discover that selling one item with a large profit margin could bring in the same amount of profit as selling several of another item.

You can then use your updated profit margins to help you focus on securing more lucrative sales, or as a motivation to find ways to decrease costs and increase your margins on the more popular items or services you sell.

Find out more about setting prices and controlling costs in your business.

3. Work on your strengths

While it’s good to be aware of the areas where your business does not perform that well so that you can aim to improve, it’s often easier to get better results, at least in the short-term, by working on your strengths. Find out what your business does well and aim to do it even better to impress your customers and encourage word-of-mouth referrals.

Speak to your customers to find out what they value about your business and find ways to enhance this, or to extend this to other areas. If, for example, your business is good at providing value-for-money products and services, find ways to enhance this. Can you offer additional products, or can you offer better value for money by providing packages to meet your customers’ needs?

In addition to potentially boosting sales, working on your strengths helps to define your competitive advantage and reminds customers why they choose to do business with you.

Find out more about encouraging word of mouth advertising and how to make the most of your competitive advantages.

4. Plug your knowledge gaps

It’s unlikely that you, as a business owner, will have all the skills you need to run your business. This means that you need to take steps to plug the gaps in your knowledge so that you don’t make costly mistakes.

There are two ways to do this: either employ people with the relevant skills (as employees or consultants) or train yourself or your employees to fill the gaps. The mix that works best for you will depend on your personality and skills and those of your employees.

There is a lot of business information available for free online, or your local Chamber of Commerce or industry body or Polytechnic could have the kind of training you need. They say knowledge is power and this holds true for any business. The more you understand about cash flow and profit margins, or sales and marketing, or areas you don’t really have expertise in, the stronger your business will be.

5. Brainstorm ways to work smarter

There are only so many hours you can devote to running your business each day, so finding ways to work smarter, rather than harder, should be an attractive way to boost your business. Hold a brainstorming session with your employees or consultants to find ways your business can work smarter.

Are there ways to work more efficiently? Can you save money by ordering in bulk, or by ordering just in time? Can you automate some areas of your business? This could include areas of production or things like automated email responses or template letters sent to your database of clients. Each of these could save you time and money.

Find ways your business can operate more efficiently.

6. Stay in touch with your industry

It’s hard, if not impossible, to take advantage of an opportunity or to react to market events if you don’t know about them!

You need to stay in touch with your industry. This means keeping tabs on market conditions and customer perceptions, as well as networking with other businesses in your industry or related industries.

Take time out to interact with and talk to your customers. Make it your business to know more about what they do, how they are doing, why they value working with your business, and what they need from you. This will help you make informed decisions.

Spend time talking to other people in your industry. Networking is an important way to hear about new developments or potential opportunities on the horizon. Attend industry events or meetings organised by your local Chamber of Commerce and actively establish and maintain contact with people in-the-know. You’ll be amazed by how effective networks can be, once you tap into them.

The next step is easy. Note down the tips (it could be one or all of them) that you think will work for your business, and find ways to apply them and grow your business in the year ahead.