Business owners, observers, and pundits have all sorts of ideas for improving profits at various small businesses. For example, dumping a load of cash on Facebook ads to attract millennials is technically a way to boost profits. But is doing so actually effective for your small business? Tiny companies spend a lot of money on consultants and gadgets hoping to improve the final profit margin. What matters most, however, is not the investment you make but how effective the technique ends up being. Keeping that in mind, here is a list of rather simple but proven to be effective methods for increasing profits at your small business: 

Switch from Paper to Digital 

As simple as going paperless sounds, it’s remarkably effective. Think about how much your small business spends monthly and annually on paper for invoices, internal documents, promotional fliers, and so on. Now think about converting all those invoices and docs into digital products. Your business could end up saving thousands of dollars each month. There are many other benefits associated with going paperless as well, such as increased convenience for employees.  

Focus Product Promotions on ROI 

For most small businesses, selling products and marketing them are two different things. One generates leads while the other turns those leads into conversions. While this method is useful and workable, it’s not particularly efficient and productive. Therefore, it’s highly recommended to pursue sales and marketing alignment at your small business. Instead of just generating traffic and leads, focus the attention on optimising ROI for each dollar spent.  

Hire Freelancers 

Does your small business occasionally require graphics for promotional material? Instead of hiring a graphics designer, consider hiring a freelancing graphics designer. If your business has cyclical tasks that occur only a handful of times per year, there’s no point in paying for a full-time employee for handling these tasks. Get a freelancer for a one-time fee to save money. Make exceptions for highly-skilled tasks related to the core business, however, as these tasks do require an employee highly committed to the business.  

Invest in Automation Software 

Increasing efficiency overall, meaning cutting down the time an employee spends on any given task to achieve the same result, is a great way to boost profits by reducing resource consumption. One of the best ways to improve efficiency around the office is to buy apps and software that automate certain tasks. Consider, for example, buying a program that can automate the tedious aspects of accounting. That would definitely reduce the work burden on the accounting department and may even lead to hiring fewer accountants to do the same amount of work. Therefore, seriously consider investing in automation programs. The money your company pays upfront will be saved later in labour and resources.  

Run Data-Based Promotional Campaigns 

If your business decides to spend a thousand dollars on Instagram to promote a product, do you know just how effective it ends up being? Does the Instagram campaign result in more paying customers? Companies easily throw away good money on promotional campaigns, only to see meagre results later. Therefore, start collecting data on all campaigns to fine-tune how money is spent. Use the data gathered to isolate the channels with the best ROI and then spend money on these to attract new paying customers.  

Use the above methods to easily reduce waste and boost profits at your business. Don’t let a penny go to waste.