Whenever people talk about business, they place special emphasis on the ‘Bottom Line’. As business growth is heavily dependent on it — growing, sustaining, and adopting newer methods to increase your bottom line is always a challenge.
From monitoring your expenditure to improving your business leads digitally,the strategies listed below are some of the tried & tested ways to improve your bottom in the long run.
1. Focus on increasing customer value
Every business needs new customers but they shouldn’t lose focus on creating value for their existing ones. Existing customers are already attuned to your brand and leveraging them to bring new leads is a great way to increase your bottom line without spending a lot.
Loyalty programs, relationship-based incentives, additional discounts for long term customers, email & social media campaigns, personalized customer content, engagement summits, referral bonuses, etc — are all ways to ensure a sustainable growth-based strategies that helps convert new leads and create value for existing ones.
2. Adopt effective spending strategies through automation
Increasing your bottom line also means cutting costs and skimming the fat. Reducing unnecessary costs by adopting automation services like — faster and cheaper collaboration tools, automated customer service chatbots, and invoicing services are ways to just remove non-value-added activities but also ensure strict time management and improve your turn around time.
Furthermore, keeping a timely check on budgets also reduces operational and overhead costs.
3. Invest in cloud computing and cyber-security services
SMBs today need to adapt and invest in digital technologies like cloud computing, artificial intelligence, virtual collaboration tools and, cyber-security services amongst others that not only save you time and money but also positively impact your financial growth strategy.
Many SMBs reach a saturation point in their bid to increase the bottom line. However, it doesn’t have to stop there — a pool of opportunities opens up when you invest in cloud and cyber-security services.
By spending less on capital and spend more on value. You gain a competitive advantage by capitalizing on opportunities through business intelligence that helps you better understand your customers and fuel better decisions faster than your competitors.
And lastly, the growing threat of cyber attacks is greatly reduced when you set compliance guidelines across the organization and have a dedicated team manage your data who ensure best practices at all costs.
4. Increase cash flow
Increasing your cash flow is one of the biggest challenges to increase the bottom line. Continuous and stable cash flow is best achieved by leveraging existing customers for advance payments or continuous payment plans.
Strategies like providing retainer packages, Subscription plans and enforcing a strict timeline for payment cycles are also useful.
Adopting referral-based sales services — like monthly or yearly service plans, the bundle of discounted prices for existing customers, engagement, and value-added services, referral bonuses for new leads in existing programs are proven methods for increasing bottom line while minimizing risk.
Improving your bottom line is a continuous effort. It should be the north star that guides your biggest business decisions in the fiscal year. Ultimately, the aim should be growing your business profitable, and improving your bottom line is crucial to it. Setting clear goals and achievable objectives in service of that big decision is imperative to earning profits and making your company bigger and better.
About Us: CFO Bridge is the largest partner model service provider in India with 220+ clients, 4000 Cr. + turnover under managed & 100 Cr. + funds raised.