Starting a business comes with great benefits but if you don’t regularly improve your operations you might lose it to your competitors. With these strategies in place, you’ll be assured of continuity and growth.
By Derick Mwanguhya
Published: December 08. 2023
Running a small business can be both challenging and rewarding.
Just imagine making your own decisions and enjoying 100% fruits of your hard work. But you also have to deal with multiple responsibilities and pressures, from managing invoices to handling customer complaints.
And in a highly competitive business environment, you need to constantly look for ways to improve and stay ahead of the curve. Otherwise, you risk losing your customers to your rivals.
This guide will show you proven strategies to enhance your small business performance for growth.
Why Improving a Small Business is Important?
Before we dive into the strategies, let’s understand why it’s vital to keep improving your small business:
Dealing with market dynamics:
Markets are dynamic and subject to constant change. What used to generate sales in the 90s is not here today.
As a small business owner, owner you must adapt to new trends, technologies, and consumer behaviours to stay relevant and competitive.
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Increase Efficiency and Productivity:
I don’t think it’s necessary to talk about this, but everyone knows it’s key in any nature of business and so it is for your small business.
Therefore, improving your business processes can foster increased efficiency and productivity in your business, hence helping you to do more.
Efficiency not only reduces operational costs but also enhances the overall performance of your business. Share on XEnsure customer satisfaction:
A customer Is a queen, yes you heard me right! Think of that treat and respect, then treat your customer the same way.
But wait, can you do it right without understanding how your customers are feeling now and improve it tomorrow, probably No. That’s why you need to always review your business and improve how you do business to satisfy your customers.
Of course, the more your customers are satisfied the more they are likely to become repeat customers and brand advocates. Therefore, you need continuous improvement to ensure your products or services meet and exceed customer expectations.
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Strategies to improve your small business
Now, let’s explore the exact tactics you must implement to improve your small business now;
1. Keep an eye on your competitors
One of the first steps to improve your small business is to closely monitor your competitors.
Growing up, my sister used to watch over me, and for any wrong I did, she was there to report to mam.
Oops! This is not a home. But you need to follow your competitor because you can use their weaknesses to your advantage or identify where you need to improve.
Stay informed about their products, services, pricing strategies, customer retention techniques, and marketing tactics to mention a few
By understanding your competitors, you can identify opportunities for differentiation and innovation.
Remember, 64% of executives believe that their current business models are at risk if they do not undergo significant digital transformation, according to McKinsey.
2. Regularly review and adjust your financial plan
While many have emphasized having a business plan and a financial plan at hand, unfortunately, many start without jotting down one.
And even the few that have them, don’t think of reviewing them because it can be a hectic task and they think it’s time-consuming.
But it saves time because it will guide you on important financial decisions you’re to make that will either benefit your business or send it to the graveyard.
So, a regular audit of your finances to ensure it aligns with your business goals.
You should analyze cash flow, expenses, and revenue trends to identify areas for improvement.
Noteworthy, 61% of small businesses that regularly update their financial plans experience higher growth compared to those that do not.
You can leverage accounting software such as QuickBooks or Sage to streamline financial processes without doing it manually.
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3. Foster a positive and inclusive work environment
“Love your neighbour, as thyself”
Oh no! It’s not theology, don’t press the back button.
But I mean who doesn’t want that treat of feeling loved while at work?
Your small business is growing it’s the time when you recruit employees to help you with work. But the way you treat them can determine your business growth.
You should regularly communicate with your team, solicit feedback, and create a positive work culture that every employee will admire.
Noteworthy; engaged and motivated employees can contribute greatly to productivity and innovation because they work as owners of the business.
In a survey by Hays, 47% of active job seekers want to leave their jobs because of bad company culture.
Your employees play a crucial role in the success of your small business. Share on X4. Always seek guidance and support
“I can do it all alone,” this is what you think. You’re right sometimes we fail to get genuine people to talk to about our business.
But it’s necessary to always seek guidance from those who have been in the industry, they can be coworkers, mentors or even relatives. They can offer insight and support on how to improve your small business without you even spending a dime on professional consultation services.
Remember, 30% of small businesses fail due to issues like lack of professional advice.
Then running a small business requires some knowledge in various areas, from dealing with customers to dealing with legal requirements.
Therefore, don’t hesitate to seek advice when needed as this can help you to make informed decisions.
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5. Prioritize Exceptional Customer Service
We did mention a customer is a Queen, maybe let’s go with the traditional one, “A customer is a King.”
Why not give them the experience they deserve when they contact you looking for it?
Probably you don’t have a 24/7 support team dedicated to assisting your customers with their inquiries. But technology has simplified all this, you can even handle all customer complaints on your own without even hiring an agent.
42% of B2C customers purchased more after a good customer service experience in2021 Share on XMany free tools can help you receive support tickets from customers, leave away messages to let your customers know that at least you received their inquiry and you’re working towards resolving the issue and chatbots that can answer Frequently Asked Questions about your product.
Note: I’m writing a guide on these free tools. Want to be the first to receive it? Leave your email below and I’ll take care of the rest.
More so, offer customer care training to your team and always collect and use customer feedback to enhance and improve your products or services.
Of course, positive customer experiences lead to increased loyalty and positive word-of-mouth, so make it your No. 1 on your To-dos.
If you haven’t heard it yet, 85% of small businesses rely on word-of-mouth referrals as their primary source of new customers.
6. Streamline operations with Automation
AI is a street talk.
Perhaps, it’s only ChatGPT! But whichever the jazz, automation is necessary for your small business growth.
Because your competitor might already be using it, no you can use automation to stay ahead of the competition.
You don’t need Google Bard maybe but various tools can help you with automation.
Start by identifying those repetitive tasks in your business and then find s means of automating them.
That can be answering basic questions about your product or services, sending email updates about your business to complex issues such as automating invoicing and managing customer data.
Above all, always ensure that automation complements your business processes rather than replacing the human touch. For example, while you can use a tool like Buffer to schedule your social media updates, always through in a human touch when responding to crises or when answering a customer-specific inquiry
In 2022, 76% of businesses report tangible benefits from implementing automation, including improved efficiency and cost savings.
Pro Tip: You can use automation in marketing, customer service, or inventory management.
7. Optimize for Local SEO
Perhaps you don’t care about online presence, because your business just serves your local area, but that’s the worst mistake you’re making.
Because 46% of all searches have local intent, making online presence something you can’t ignore.
Therefore, as part of improving your small business, utilize local search engine optimization (SEO) techniques to enhance your visibility in local searches.
Did you know that 72% of consumers who perform a local search visit a store within five miles?
And I don’t remember the last time I was searching for a grocery store, bakery, or an ATM without the phrase ‘near me’
28% of searches for “near me” lead to a purchase Share on XAnd it’s all free. Make sure you claim your business on Google Business Profile (formerly GMB), create your listings, collect and respond to online reviews, and create a free landing page for your business from CMS such as WordPress, Wix or Tumblr.
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Bonus Tip
Use Data-Driven Marketing Techniques
Do you recall the days when mam could sell off harvests after anticipating that the price is fairly high?
Why is it that way for your small business in this modern age where we have unlimited access to data that can inform our decisions?
Gone are the days of try and error.
And when it comes to marketing using data-driven strategies is essential for attracting and retaining customers.
You can do this seemingly easily by analyzing customer data, such as demographics, preferences, and behaviour, to create personalized and targeted marketing and advertising campaigns.
Of course, with the presence of technology, this can be done in just a few minutes. So, you now have it! Next time you’re to launch a marketing campaign let it be informed of the existing data to help you predict the outcomes and plan accordingly.
Forbes said data-driven marketing can increase revenue by 20% and reduce customer acquisition costs by 15%.
Final Thoughts
Regularly reviewing and improving your small business operations is essential, however, you should know that it’s an ongoing process that requires dedication and strategic planning.
We hope these strategies will guide you in your next step of action for your business.
Stay informed about industry trends and updates, as this will position your small business for sustained success in a competitive marketplace.
Be ready for change, and embrace innovation to ensure long-term growth and resilience.
Thanks a bunch for reading! Please take time to share your thoughts in the comment section and share this article with your friends.