Before you can work to improve your business return on investment you must first define what “return” means for you. This could include higher sales, increased revenue, bigger profits, reduced overhead or production costs, higher employee retention, better customer satisfaction, increased brand preference, or fewer government regulations. Once you select your “return” goals, you can work towards achieving them. However, for the purpose of this blog, we will discuss three ways to get the best return on investment for companies overall.
One way to increase your return on investment is by generating more sales. While the easiest way to achieve this could be to just raise your prices, this is not always the most beneficial. We recommend always looking at ways to improve your sales without affecting your current business practices. For example, you could increase your spending budget on advertising or host a sale. While this will cost money, the return could elate your profits, making an improved return on investment!
Another way to improve your return on investment is to reduce your expenses. You won’t need to raise prices or increase your sales if you can reduce costs. Overhead and production costs vary between industries but there are ways for business owners cut these costs and get their best return on investment. For example, focus on reducing non-product costs like rent or having a work phone. If possible, you could focus on an online shop rather than a brick-and-mortar and have a responsive email instead of a work phone. On the other hand, you could focus on reducing production costs as well. Shop around and see if you can lower your cost of materials and labor. It may not be possible but it’s worth it.
Reevaluate your expectations
Every investment doesn’t need to provide an immediate dollar benefit. In fact, many forms of digital marketing, such as search engine optimization or pay-per-click advertising, can take time to increase your sales. However, this shouldn’t stop you from considering these services. These types of marketing campaigns are not only valuable over time but they allow you to track insights like new customers, increased traffic, and increased awareness. Maybe it’s time that you re-evaluated your expectations.
Which ways do you plan to adjust to achieve the best return on investment? Drop a comment below to let us know.