One of the best ways you can grow your business is to take a closer look at all the different parts that combine to make your business unique.
Understanding your business better will help you make changes that can result in more profit and extra sales. Nothing stands still, and what worked for you and your business a few months or years ago may no longer have the same appeal to customers.
Parramatta is made up of a wide variety of businesses including restaurants, cafes, retailers and service-based businesses. Each business will have its own unique way of doing things, but there are some common issues that can often be improved or changed.
To better understand your business:
Examine your current products and services
How long has it been since you have really had a close look at your products or services? Consider whether they are still right for the current environment and also whether there is an opportunity to launch new products or services to meet the changing preferences of your customers. Does interest in your products and services convert to a sale?
Are you selling your products or services at the right price?
Think about your ‘value proposition’. What makes your business unique when compared to your competition and why do customers want to buy from you? You can take into account what prices your competitors are charging and set yours to compete with them. Or, you can base your pricing on the costs associated with the goods and services you produce and add a mark-up. Finding the right pricing model can help you streamline and sell to your customers in a way that results in more profits.
Assess your costs
There are many different costs associated with running a business. Some are fixed, like rent, insurance, loan repayments etc., and others are variable and can change and fluctuate. For example, the cost of raw materials and food costs associated with preparing dishes is a variable cost for many Parramatta eateries. Reviewing your cost structure and finding ways to reduce your costs when possible can increase your profit so revisit these decisions on a regular basis. A review of your inventory is a good way to consider whether you can change how you purchase your stock and your stock ordering processes.
You may be able to negotiate better deals with suppliers or reduce major overheads or eliminate some unneeded purchases altogether.
Are there ways you can simplify how you operate your business?
Simplifying your business will give you back more time to think about strategies to grow your business. Simplification may relate to developing a streamlined menu that will make your business more efficient. Or it may involve taking advantage of new cloud-based accounting software so you can see how your business is travelling in real time.
Realise Business Advisors can work with you to help you unpack the elements that combine to make your business what it is today and what is could be in the future.