We scoured the internet so you didn’t have to and bring you the TOP TIPS from the experts, for a continued successful small business.
Did you know in 2019 there were 5,867,800 businesses in the UK, of which 5,824,500 are considered “small businesses”. There were 5.9 million small businesses at the start of 2020. In fact small businesses account for 99.3% of the total business population. We are likely to see a drop in these figures this year due to the impact of covid. London (1.1 million) and the South East (932,000) had the most private sector businesses, accounting for 35% of the UK business population.
According to the UK government, a small business is defined as a business with under 50 employees and turnover under £10 million. However, if we’re talking about annual accounts for limited companies, the UK government defines a “small” limited company as meeting any two of the following three criteria: a turnover of £10.2 million or less, £5.1 million or less on its balance sheet, 50 employees or less.
So read on for top tips to keep being successful out there in these tough times.
Cut all unnecessary costs.
All those tiny little costs add up, from your staff coffees, to the humble paperclip. Not convinced? Famously, when Greg Dyke began a purge on unnecessary expenditure at the BBC he stopped the free croissants there. He saved £20 million.
Keep the business plan on track.
At the start of your business you had a business plan and it’s important to keep referring back to it from time to time to make sure you are on track, and then adjust if needed. Plan, review, plan again. Dont forget to look at ways we can help raise funds here at Almagrove ltd.
Value not cost.
It might seem tempting to buy cheap when investing in your technology or assets but this is common mistake. You might not need the most expensive item on the market – that’s another mistake. It’s not about the cost. But look carefully at the value of the item – what value can it add to your business – how much time can it save you, how many more customers can it help you serve, how much can it add a new service that you can charge for.
Encourage quicker payments.
Cashflow issues are the downfall of many businesses. Tempting as it is to throw money at huge advertising schemes to promote your business, there are low cost ways to try first. Social Media is an easy way to gain huge amount of PR with little costs. A few pounds on there can put your business in front of thousands of people very quickly.
Try running competitions online/in-store for free coffee, MOT or whatever it is your business offers.
Its a great way to gain new customers and new supporters.
Look after your customer.
In times when everyone is cutting costs and counting the pennies your customer is even more important than before. The regular customer who spend £10 every week is just as crucial as the new customer who spends £200 in a special offer once. Its good to get new customers and clients, but the old customers deserve respect and your best customer service too. Customer loyalty, excellent customer service and brand reputation will also help you recruit new customers without raising any costs, via word of mouth – the very best advertising there is.