3 Ideas That Will Improve Your Startup’s Profitability

According to some experts, 9 out of 10 startups fail. There are a variety of reasons why a company ends up closing its doors soon after opening them, but possibly the most common cause is the business fails to turn a profit. Whether you want to ensure the longevity of your company or simply want to strengthen your cash flow, here are 3 ideas for improving your startup’s profitability.

Allow for Telecommuting

While it’s nice to have team members on site to collaborate on projects or for impromptu meetings, the technology available today makes it easier than ever for people to work together even when they are miles apart from each other. For instance, Skype and similar services can be used for teleconferencing, and online task management software can help keep everyone on the same page.

Therefore, you should consider allowing employees to work from home or offsite. This can help boost your company’s profitability in a number of ways. First, you’ll save money on real estate because you won’t need as much space to house employees. It can reduce attrition, particularly among employees who have children or care for ill or elderly relatives. Telecommuting can reduce absenteeism since ill employees won’t be around to infect others, and employees tend to be more productive because there are fewer distractions.

If you want to improve your company’s profitability, consider allowing some of your workforce to work from home.

Expand Your Pricing and Marketing Strategy

Another thing you can do to improve the profitability of your startup is to give away coupons and discount codes for products such as electronics. If your business is selling electronics, the coupons and Monoprice discount codes will attract customers to your store and get them thinking seriously about making a purchase. Most people are aware that the life span of coupons is limited, and this will drive customers to make a purchase so they can take advantage of the bargain.

Even if you don’t sell electronics in your company, you can still use coupons for them as part of your marketing strategy. You can offer the discount as a carrot for taking an action that benefits you. For instance, you could offer discount codes for popular electronics to customers who sign up for your mailing list. This will let you stay in contact with clients so you can market your products or services to them which, in turn, can lead to increased sales and profitability.

Rethink Your Product Offerings

Not every product or service you offer will be a best seller. However, the act of selling the products and servicing the clients who use them cost time and money. Therefore, you need to make sure the item or service is pulling in enough money to justify its existence in your list of offerings.

If you find an item is just not making you any money, then you should cut it from your menu completely or at least make changes to increase its profitability. For instance, if you sell a line of surf boards, get rid of designs that aren’t selling very well or only make those designs available as a special order and charge customers a premium that accounts for the increased cost of making the board.

Boosting the profitability of your startup will be challenging, but making the effort can ensure your business sticks around for the long term.

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