Every sole trader will tell you that at times it can be very lonely working on your own. While many entrepreneurs can be incredibly successful in working independently, others need external input and advice to help them figure out their business growth strategy. If you are a sole trader, here are some things to consider which could maximize your profits and maintain your business growth sustainably.
Pay Anywhere Options
With more and more of us, every year using digital payment devices such as credit cards, debit cards, and even our mobile phones, the ability to accept cashless transactions is a must for any trader working in the 21st century. If you can accept credit cards, make sure to advertise this, especially if you are in a business that goes into people’s homes like a plumber or a window cleaner. Many people might not have cash on hand but would appreciate the convenience of paying there and then rather than waiting for an invoice. It will also save you the hassle of chasing up unpaid customers.
The other added benefit of accepting credit cards anywhere is you can set up stalls advertising your products or services at local events, and you can secure customers with payments there and then.
Keep Good Records
While this advice might seem obvious, it is easy to overlook its importance with the hectic schedule of running your day to day operations. Make sure you set aside time to keep your records up to date. This makes sure you are getting all the income you have worked for, but it will also help you gain an excellent overview of the business. Good records allow for good analysis. If you want to predict when you will get busy, you can look over previous years’ workflow.
Similarly, if you want to know how your expenditure breaks down as a percentage, you need accurate and up to date records. If you are continually wrestling to find the time, pay for a bookkeeper. The benefit will undoubtedly outweigh the small expense, especially if it will help you spot cost savings elsewhere in your business.
Analyze Your Competitors
Competitor analysis doesn’t need to be a lengthy process, even keeping occasional tabs on their websites can be useful. Competitor analysis is as much about figuring out your strengths as it is theirs. What can you do differently that will give you the edge? If a competitor is cheaper, try and find out how they can give those cost savings to customers. Can you make the same price cuts or advertise how your service retains higher quality. Knowing what your competitors are doing also allows you to speak with credibility to customers who are shopping around. Remember that your competitors can be your friends as well as your rivals. There might be mutually beneficial services you could offer each other. Perhaps when you reach capacity, there is a competitor you can refer potential new customers to and vice-versa.
Analyze Yourself
Any competitor analysis is only useful if you can use it as a comparative tool. You need to know your business strengths, weaknesses, and potential growth markets. Don’t let pride get in the way of profit. Ask your customers for open and honest feedback, and take this on board. If one customer thinks you could improve your service, likely, they are not the only ones if you need to ask friends in other fields to give you feedback. This can be on simple things, like how easy your website is to use, or if you feel robust enough, you can ask about your sales technique and whether they think your approach needs to change to attract custom. Don’t be afraid to make significant changes if it has the potential to have a big impact on your profitability.
You Don’t Need To Stay A Sole Trader.
Finally, if your business has experienced rapid expansion, then there might be too much work for one person to do alone. If you see this as a problem, then you are likely to become overstretched and potentially burnout. However, if you are willing to invest in an employee, you could see your capacity expand, and your growth potential grow exponentially. An employee can benefit you by providing skills that you might not have. So if you are incredibly creative but not well organized, then hiring someone who can help keep your systems in check while allowing you to dream big could be a huge advantage. Remember, two heads are always better than one.
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