Here are 8 tips for improving your startup profits. Some of these may seem obvious while others may not. The truth is, in a startup, you want to work smarter not harder, and along the way that can actually turn into cost savings, product improvement, and more.
- Streamline Problem-Solving
- Motivate Your Team
- Improve Management
- Digital Tools
- Optimize Products & Services
- Use Experts
Using freelancers and outsourcing portions of the work is a great way to save time and ultimately money. It allows you to focus on running the business instead of setting up your website or running your email campaigns.
Most businesses don’t have a formal problem-solving process and that’s unfortunate. Critical thinking and analysis should be the foundation of your decisions process. It’s too easy to “shoot from the hip” or rely on an opinion. Why do you think so many businesses fail? Get in the habit of requiring basic research and analysis for all your decisions and you’ll quickly see an improvement in the quality of your decisions. And who really knows how much bad decisions cost in time and money – a LOT.
Motivate Your Team
No man or woman is an island. You’re not going to get far without your team so keep them motivated in the best way possible. Let them know they are appreciated. Encourage their participation. Give them real responsibility. Listen to them. Reward and recognize achievement.
People follow leaders, so be a leader. Leverage your whole organization in a coordinated effort to improve profitability. Listen before you speak. Keep meetings short. Encourage collaboration. Be kind.
No one wants to do repetitive menial tasks so automate wherever possible. Automation is one of the easiest and quickest ways to measurably reduce costs. Just be sure to document the process and verify the outputs.
Having and using the right tools makes all the difference not just in getting the job done but actually enjoying it. There are tons of digital tools for teams to collaborate and manage their work. Just be sure you understand any risks and that you maintain control over your data.
Optimize Products & Services
It’s a good idea to always look for ways to improve your products and services. When you improve a product let your users and potential clients know. Highlight how these changes improve their experience. This can save you time and money but more importantly, it can become a differentiator for you in the market.
If you are trying to build capability or gain deep insights you will likely need the help of an expert. While this may appear to be an expense, when compared to the time it would take you to do it yourself, and the compiled cost of all your failures, it is money well spent. Sometimes a $20K investment can save you $100K or more.