Tuesday 2nd of September 2025
Every entrepreneur intends to grow his/her business and keep adding zeros to the profit margins.
...However, daydreaming does not always translate int...
Every entrepreneur intends to grow his/her business and keep adding zeros to the profit margins. However, daydreaming does not always translate into results. Small business owners are invariably reeling under the threat of a collapse if they fail to improve. Progress becomes a necessity to stay afloat and rise above the competition. Thus, if you are planning to purchase a small business for sale in South Africa, then you should know how you can make it profitable.
The need to increase the returns is now higher than ever because of the global economic crisis brought about by the COVID-19 pandemic. However, generating profits is not like waving a magic wand and collecting a significant revenue. It needs implementing several cost-saving and sale-inducing strategies that make the venture successful. Here is a list of seven ways of increasing profits for a small business that can help you in your quest.
The first step towards increasing profits is cutting down on redundant expenses. Identify the products and services which are not generating enough sales but are consuming a lot of resources and funds. Discontinue such goods and services and divert the saved capital towards the high-performing projects that are raking in dollars. You can later reinstate the suspended products when you are in a position to do so. Make sure that you are spending only on adding value to the business and nothing is going to waste.
Conduct a SWOT analysis of the company and figure out the apparent weaknesses which need to be tackled. The flaws and limitations within the organisation must be dealt with at the earliest. Make sure everything is in line with the end goal of the entity.
It is a well-known fact that customer retention is more economical than customer acquisition. Thus, you must plan on selling more to your existing buyers. There are several ways of attracting the customer base again and again. The first one is, of course, the introduction of a loyalty program, which extends rewards on next purchases. Cross-selling is yet another advantageous strategy of increasing sales by offering complementary products along with the sold goods.
You can also improve the saleability of the in-demand products by introducing competitive pricing and offering better customer service. Build a relationship with your target audience so that they do not stray and stick to your brand. Make them feel special through direct marketing and personalising their experience.
Nothing works like word of mouth publicity, especially in the digital era. Most buyers go online to check customer reviews and ratings of a product or service. Thus, the best way to find new customers is to make the loyal customers talk highly about your company. Ask satisfied buyers to offer their feedback online on Google Reviews and the company profile page on Facebook to generate interest among new markets.
Another way to leverage the loyalty of your customers is to ask them to bring referrals. You can provide them with a discount on introducing friends and acquaintances, which will make them eager to find new customers for you. It will help you to generate new leads without spending anything on marketing.
Since the focus is on reducing costs, you can utilise social media marketing and your website to generate leads. Start a blog which offers information on your industry and business offerings and is relevant to your target audience. Create social media posts that invoke discussions and get shared by various people. Use intriguing pictures and videos to create interest in your small business. You can also use pay per click advertising to attract new customers.
However, merely generating interest is not enough. You need to influence them to make the purchase. It can be done with the help of social media influencers, offering first-purchase discounts and incentives, creating a sense of urgency by promoting a limited-time offer, etc. If the potential buyer still hesitates, then follow-up with them and interact directly to persuade them.
Improving the bottom-line of a business is heavily dependent on managing the incomings and outgoings. To stay on top of the books, you must get customised accounting software that will keep the balance sheets updated and provide you with a clear picture of the available funds. Also, it will help you to avoid any frauds. You can manage cash flow through prompt invoicing that helps in avoiding delays in getting the receivables.
Also, you must pay all the bills on time so that there is no late fee or penalty that adds to the costs. Reduce the spending on overheads by leasing equipment instead of purchasing. You can even sell off the assets which have become obsolete to liquidate them and increase capital. Make informed investments after consulting your financial advisor to avoid unnecessary risk.
Although the COVID-19 pandemic has forced several businesses to move their physical store online, it has helped others to improve their profits. An online store along with a brick and mortar business can help in expanding sales as you can cater to a wider audience online. Offering contactless deliveries and curbside pick-up have helped businesses to sustain their sales during the tough period of the lockdown. With an online store, you get the opportunity to offer a nation-wide service and get paid immediately through a secure payment gateway. Create an intuitive and immersive e-commerce website that entices customers and improves sales. A powerful online presence also helps in enhancing the credibility of the business.
Sales personnel are the face of the company and play a vital role in influencing the target audience. Thus, they should be encouraged and inspired to perform to the best of their ability. They must be provided with weekly and monthly targets and offered incentives that match up to their effort on the field.
The best employees must be credited for their exceptional performance and praised in front of others to boost their morale and enthuse others. Assign sales territories to the representatives and have the best sellers appointed in the high demand areas to boost sales. Train the staff regularly on customer behaviour and acquaint them with feedback so that they can understand the pain points of the buyers and satisfy their needs.
Conclusion
A commercial venture cannot survive without making significant sales. Also, a year-on-year increase is imperative to make the company grow from strength to strength. Thus, if you are planning to purchase a business for sale in South Africa, then make sure that you follow the strategies mentioned above to improve the profits.
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