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5 Simple ways to increase profitability for your small business

Small businesses and their owners are faced with numerous important decisions everyday. Many of those decisions deal with operating the actual business – things like what products/services to offer, how to manage your employees, or what promotional activities to engage in. Other decisions, especially those involving company finances, can get a little bit tricky. If you own or operate a small business, you can’t be expected to be an expert in everything, so Capital Partners Law offers these 5 simple steps to easily increase your business’s profitability.

SMBs: Combat Inflation with Smart Business Moves

If you own a small or medium-sized business in Florida, especially in a large city like Miami or Fort Lauderdale, you know that inflation has taken a huge financial toll on businesses and individuals alike. If you are looking for ways to offset your elevated expenses, keep reading as we touch on a few ways to save without sacrifice.

1) Make Sure Your Contracts are Clear, Correct, and Legal

Your business’s contracts are at the core of your organization. If you are currently operating on handshakes and unspoken promises, now is the time to work with Capital Partners Law to create binding contracts that leave no room for interpretation. Not only will you ensure that your best interests are protected when working with vendors, suppliers, or customers; but you’ll probably actually save money in the long run. All too often, we’re contacted by companies after they’re already involved in a dispute, resulting in unexpected expenses and lots of wasted time. With a well-written contract prepared in advance, many conflicts can be avoided altogether, and if/when they do arrive, you’ll have the piece of mind of knowing you’re protected.

2) Avoid Accounting Errors

Accounting errors, such as omissions or the simple failure to send a timely invoice, can cost your business big time. Spend the time and money investigating and setting up an accounting software that takes the guesswork out of everything from invoicing and tax deductions to payroll. You should have no problem finding a free option to get you started so that you are not wasting money on software with features you’ll never use.

Proper budgeting is also essential to the success of every small business. By creating a detailed financial plan or budget in advance, you’ll easily be able to calculate how much to spend on things like marketing or promotions, without negatively impacting your bottom line. We recommend using conservative estimates when putting the budget together, since its always possible to revise your figures along the way.

3) Handle Your Own Marketing – Especially in the Beginning

Before the pandemic, you may have outsourced your marketing to a service. But, if you are like many businesses throughout Florida, you may be struggling to regain traction after a significant downturn. Plan to handle your own marketing, which should start with social media. Although there are paid advertising opportunities everywhere, social media is free. You can also take advantage of free online services that allow you to create graphics, such as web banners, that you can post online to gain attention.

Quick tip: once you find a social media banner style that you like, save it and then personalize it with text, colors, and graphics that are consistent with your brand. MailChimp offers lots of great advice on getting started with social media marketing.

4) Keep (and reward) Your Best Employees

If your first instinct is to weather inflation or financial troubles by reducing your staff, you may want to think again. Employees you already have in place know your business best and, once inflation regulates, you may find that they have no interest in returning, which means you’ll spend the money on onboarding and training new people. Instead, look for ways to keep good employees. The US Chamber explains this means showing appreciation and respect and avoiding the urge to micromanage their every move.

5) Boost Productivity

The more productive and efficient you are, the less rising costs will affect you. If you can increase productivity and efficiency, you may be able to offset higher expenses associated with supplies, materials, and other common business needs. One smart way to increase your productivity is to evaluate your current workflow. For example, if your staff is wasting time walking from one side of the building to the next to complete a single task, it may be time to restructure or simply batch those tasks together. You can also create a workflow diagram that shows the most efficient way to complete each job.

Inflation has had a negative impact on people throughout the entire state of Florida. As a business owner, you have no doubt bore the brunt of higher prices. The above tips, which include reducing financial errors by using proper accounting techniques, keeping your best employees happy, and marketing online with social media, can help you make the most of our current economic situation without sacrificing quality.

What Should You Do Next?

If you are interested in learning more or speaking with an attorney at Capital Partners Law, there are plenty of ways to get in touch:

This article is for informational purposes only. It does not create an attorney-client relationship with any reader nor should it be construed as legal advice. If you need legal advice, please contact our firm.