3 things to consider for a struggling business

March 27, 2011 by Steven Q
 There is no doubt that 2010 was a tough year for small businesses all over the country, but there is a light at the end of the tunnel. By using these marketing tactics you may be able to turn 2011 into your best year ever.
1.       Revisit your breakeven point. This may sound basic but you will be surprised how many business owners don’t know exactly how much money they need to make o stay afloat. Often times they over estimate exactly how much they need which brings undo pressure on management. In a tight economy don’t compare your income to past profit margins. Profits are important but getting back to the basic breakeven point will allow you to make better marketing decisions moving forward because now you will have a better idea of what you can afford.
2.       Know where your money comes from. Another seemingly common sense idea that is often overlooked. Look at where your income is coming from and determine how much of it comes from your most profitable product or service. Are you paying enough attention to your core offerings or are you overselling on easier less profitable alternatives?
3.       Are you underselling yourself? Don’t ever let your competitors cost determine your pricing unless you’re selling the exact same product.  If your competition is undercutting your price then position yourself as the premium product, and beat them with intangibles like service and expertise. A simple thing to remember is that it takes 100 $5 sales to equal 1 $500 sale. Focus on the right clients and leave the scraps to your competition.

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