Startups

How to boost profitability at your startup

  • 5 min Read
  • June 29, 2021

Author

Escalon

Table of Contents

Although there is no one-size-fits-all advice that every entrepreneur can follow regarding profitability, companies that are working to reach a large profit margin can often use some tips. Check out the following best practices and strategies that can pave the way for the future growth of every startup business.


Best practices to boost your startup profitability




Calculating profitability at various levels of your business journey is the best way to ensure optimal financial practices at every stage. Use the following guidelines to generate more profit for the future success of your business.



  • Prioritize savings on office space and furniture – try to start your business at home if possible.

  • Go low on investment or funding – utilize personal funds or reinvest your profit (some fixed percentage) in your business to avoid outside business financing.

  • Maximize your cash flow – boost your receivables to improve cash flow, and ensure you maintain cash on hand.

  • Be optimistic about the future of your company – be aggressive, but don’t try to expand beyond your means.

  • Build an efficient website for your company, making it accessible for both desktop and mobile versions.

  • Keep yourself updated with industrial, business and cultural data on the current state of affairs in your domain.

  • Maintain healthy competition – be informed about what the competitors are doing so you can provide a product or service with a point of differentiation.

  • Work on improving your employees’ productivity and efficiency – empower them to achieve their sales quotas.

  • Check for consistent market demand – find your niche and become a leader in it.

  • Automate your business – this can provide you with efficiency, which saves money.

  • Improve the quality of your products – build a reputation for a great offering to fuel future growth.

  • Beware of sales team discounting – apply effective marketing strategies, identify and solve pricing and cost issues.

  • Fulfill customer demands on priority – provide good customer service.

Strategies to boost your startup profitability




There are many strategies that small business owners can use to reduce costs, increase profits and boost productivity. The following few techniques will help your business develop a strategy that leads to profitability faster.


Increase revenue while reducing expenses.

To reach a profit, review your pricing strategy to ensure that your products and services are profitable and competitive in the marketplace. Increase your sales by streamlining productivity, reassessing marketing strategy and cross-selling — offer new services or goods that complement the current offerings.


Familiarize yourself with small business statistics.

The best way to make a reliable business plan is to understand the current statistics of the industry and how other similar firms made it work. An effective business plan can help your company grow and thrive, and make informed decisions.


Talk to us about how our back-office services can help your startup scale faster.



Focus on your winning market.

Identify potential buyers or best customers of your products and services, and narrow your focus down to one market niche. Filter your leads to invest highest into those prospects, creating profit-generating customers for your company.


Focus on your winning product or service.

Analyze which of your products or services have a maximum and minimum sale. Then, focus your sales efforts on max selling offerings. Ignore or phase out your lowest-selling products or reassess those products’ profiles later.


Improve the lead conversion rate of your sales team.

Whether you’re in an online sales business or you deploy a field sales force, your company’s ability to turn leads into sales is key to increasing profit. Use effective marketing strategies from telephone to email to face-to-face meetings to help your sales team convert potential leads into customers.


Measure and track productivity.

Introduce a system to measure productivity and profitability, and eliminate unnecessary activities or tasks that don’t add value to the company. The system should also enable you to measure the efficiency of your employees.



Build a strong market presence.

Create an online presence of your business through social media networks, including Facebook, Twitter, YouTube, Instagram and Linkedin. In addition, create a website and blog to connect with clients and make strategic alliances. Accreditations, licenses and certifications for your business can set you apart from your competition.


Track your time.

Time is one of the most invaluable assets for a startup’s survival. Reduce your operating costs and increase revenue in as little time as possible. Thus, measuring your time and levels of productivity, you can estimate your future capacity for generating profits. It also provides you insights into the total time spent on each project, and can show you where to cut expenses or excess costs so you can increase profits.


Maintain a balance between profitability and growth.

The success of a business will depend on finding a balance between profitability and growth. Maintaining harmony between the two will enable you to grow faster than your competitors do.


Have a strategic plan to achieve profitability.

Prepare a strategic plan with 1-year, 3-year and 5-year goals that outline how your business will earn its profit. Define at least five key success metrics and implement and monitor a budget to achieve them. Seek input from experts and establish an advisory board of key clients. Conduct a customer satisfaction survey to improve and revitalize aging products and services.



By employing several of these strategies, you should be able to improve your profitability so your business can grow faster and earn more money along the way.



Want more?

Since 2006, Escalon has helped thousands of startups grow faster with our back-office solutions for accounting, HR, payroll, insurance, and recruiting and taxes — and we can help yours too. Talk to an expert today.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Small Businesses

The ROI of Outsourcing Business Services: How to Measure Your Investment’s Impact 

The ROI of Outsourcing Business Services: How to Measure Your Investment’s Impact  In a world where every dollar must count,...

Read More
People Management & HR

2025 Employment Law Updates: What to Know

As we step into 2025, businesses across the country face several important updates in labor laws and employee benefits. Staying...

Read More
Startups

5 Signs Your Startup Needs an Outsourced CFO  

5 Signs Your Startup Needs an Outsourced CFO   Startups often operate with lean teams, but as they grow, financial complexity...

Read More
Leadership & Growth

CG Startups: How to Keep Costs Low While Scaling Operations 

Consumer Goods Startups: How to Keep Costs Low While Scaling Operations  Scaling a consumer goods startup requires a careful balancing...

Read More
Press Releases

Escalon Expands Its Reach: Full Stack Finance and Early Growth Join Forces with Industry Leader 

Escalon Expands Its Reach: Full Stack Finance and Early Growth Join Forces with Industry Leader  In a strategic move that...

Read More
Taxes

Delaware Annual Review: What Series A-C Startups Must Know to Stay Compliant 

Delaware Annual Review: What Series A-C Startups Must Know to Stay Compliant  For startups incorporated in Delaware, staying compliant is...

Read More
Taxes

Tax Planning for Startups: Preparing for Your First Tax Filing

Tax Planning for Startups: Preparing for Your First Tax Filing as a Growing Business  For many startups, the first major...

Read More
Taxes

Unlock Tax Savings with the R&D Tax Credit

As a startup, managing cash flow and minimizing expenses are critical to your business's survival and growth. One often-overlooked opportunity...

Read More
Accounting & Finance

1099 Compliance for Early Stage Startups

1099 Compliance for Early Stage Startups As your startup grows from seed funding to Series A, B, or C, you’ll...

Read More