Pathway 1What is the hidden pathway to profits in your small business? You’ve done the analysis, and you’re well informed about your high and low margin products and services. You know your bottom line. You know business management and what’s working. You have business success. But right about now you might be wondering: what can I do to boost my profits?

If you are like most small business owners, you focus most of your sales efforts on your high profit margin items. And you keep your low-margin products just rolling along.  But should you? After you have reviewed your cost management issues with these low-margin products, what if you could apply a business strategy to rejuvenate your low margin products or services? First, consider a product or service that will provide you great profit margins; wouldn’t it be a novel idea with unpredictably good results to use these products or services to direct customers to purchase one or more of your low-margin products or services in a combined transaction? You can turn the tables on profit margin issues to create unique and unexpected advantages. (Sure if you can bundle two high-profit margin items, do that.)

All that is needed is an analysis of complementarity.  What goes with what? Get creative and have some fun with it. Talk to your team and your customers to see what combinations of products might work to meet customer needs and enhance customer value. There is major potential business growth in this approach. Track your progress with performance management tools to see where to make needed adjustments over time. It’s always worth a try. You don’t know what you don’t know. This is an example of effective business leadership directed toward profitable action.

Launching a new product or service requires a strong marketing plan to achieve and maximize awareness and sales. Reality check; most products or services have a limited lifespan. Over time, aging products or services fall out of sync with the market. Why would you continue to spend money to market aging products? When the time has come that they no longer fill a strategic place in your product line, be courageous and offer them retirement. Be grateful of their long service to your business. Saving money on marketing for products that are not selling well or generating adequate margins is a profit booster.

Pathway 2What if you could make a high profit margin item bigger and charge more money for it? Is there any room for this option? By the same token, what if you slightly reduce the size of your product; would you sell the same quantity or even more? Lots of customers won’t care about the size as long as they avoid paying a higher price.  Use the same philosophy when purchasing: what if you could purchase a larger volume to capture savings without handcuffing your cash flow? Wouldn’t that cut your costs and thus increase your profits? It definitely could. Learn to negotiate carefully with your suppliers using a win-win philosophy.

Mainstream media including radio and TV are traditional ways to bring your products or services to the public eye. It is well known that both outlets will give you free advertising in exchange for products or services that they can use for promos. Opportunities for bartering with the media, as well as cross-promotion are available to small business owners who seek them. How valuable to your bottom line would a partnership with the local media be? How powerful would a daily elevation of your brand through them be to your business? How can you afford not to enter such a venue? Social media is key as well. Use the savings to boost your brand in the media, and definitely social media, which can create many new opportunities. Current customers and prospective ones could be your audience on the web. What a way to WOW them by elevating your brand in their cyber world. Wouldn’t that be a profit booster? Facebook, Linkedin, Twitter, Google+ and Pinterest, to name a few, are free and ideal to stay in contact and launch a product or service. When you are ready you can even consider creating an app. Build and develop your relationships with customers, suppliers, and partners and you will bring more profits to your profit and loss statement.

Regarding space, do you really need a storefront or an office? In today’s world more and more people are taking advantage of the opportunity to telecommute, have a home office, and use swing space. It is a definite cost cutting solution, and thus a profit booster. Can you dedicate home space for your business? Would that be a possible way to boost your profits? Can you secure attractive meeting space for only when you need it? Use these pathways to boost your small business profits.

PS: For more information please click here and get my free Special Report“3 Profit Pitfalls and How To Avoid Them.”