Over the last 3 years, we’ve worked with a wide array of different small businesses around the country and in Europe. And in every case, the marketing that a company has chosen to do (or not do) has proven to be a key aspect of its profitability. That may seem obvious, but when you break it down there’s a lot more to marketing than just driving revenue. It’s also a question of what those small businesses invest in and prioritize and what they might do themselves. After all, sometimes, the cost equation is just as important as the revenue side. And this goes for all kinds of companies:

• • Those have existing capital from investors to spend
  • Those businesses whose expenses all come out of the owners’ pockets
  • Those with small marketing teams
  • Solopreneurs or consultants
  • B2B businesses
  • B2C businesses

What we’ve found over the past few years is that there are some commonalities among profitable enterprises – shared practices that cut across business types, industries, and more. Here are a few of them:

No. 1: Investing in Original Content Production

OK, we know we sometimes sound like a broken record here. But creating original content assets is something that we’ve seen the most profitable businesses do really, really well. They might invest in original photography (or take photographs themselves or have staff do it), write their own blogs or whitepapers, or record their own videos. When you produce original content, you’re communicating your authenticity to your various audiences. Subconsciously what happens is that your target consumers then trust you more and become more likely to buy from you.

Along these same lines, the other thing great companies do is to produce this original content throughout the buyer journey and then they use it for awareness, acquisition, or to help them close the deal with potential customers. In other words, because the content produced is full-funnel, the company stays top of mind throughout the entire process.  

Finally, profitable companies know that resources are often scarce. So, they’ll scale their content. For example, we know companies that produce a successful podcast on a particular topic, then will write a blog or social post about the same topic as well. That allows them to produce more marketing collateral in less time because the content is essentially already developed.

The best part: You can create content yourself (basically for free). It just takes work and a lot of effort that you have to be willing to spend. If you’d rather have others do it for you, that’s fine as well. Here’s a content development agency that we recommend. 😉

No. 2: Getting Active in Social Media (Very Active)

A lot of small businesses may not realize that most social platforms (such as LinkedIn, Facebook, IG, YouTube, and TikTok) generally will reward companies that post A LOT and contribute content for their communities. Many of the profitable companies we know post twice per day (or at least every day) on various platforms, for example.[1] The great part about social media is that posting on platforms on behalf of your business is free. And if you follow our advice in point no. 1, you can easily promote your content on these platforms to spread the word about your expertise and authority. 

The other piece of advice we’d give. You can create great social media graphics (and a lot more) with a platform such as Canva ($12/mo.), which we’d recommend all small businesses invest in. That way you can save money on hiring a designer. Or, if you do hire a designer, let them help you with the more complex designs on an ongoing basis.

Understanding it’s a lot of work to post every day on social, we would certainly recommend it become part of your routine if you can do it on your own. Think of it this way: The reason why profitable companies do it (and the reason why they’re profitable) is that they take advantage of all the free promotion they can get. It just takes a bit more effort. The other thing to consider if you’re a business that doesn’t like posting is to pay someone to help you with this at least part-time. Again, we have a great social media agency we can recommend here.

No. 3: Providing Great Products & Services at a ‘Relatively’ Low Price

Pricing your products and services appropriately can be the difference between getting a volume of sales (and consequently profitability) or not driving much in the way of sales at all. Pricing theory can get a bit complicated, but generally, businesses should always consider:

• • The true cost of goods sold (Otherwise known as COGS, you can ensure profitability by pricing above what it costs you to produce and market any product or service.)
  • Industry pricing (Make sure to understand what competitors may charge for a similar product or service.)
  • Lifetime value (What profit margin you can you live with based on the fact that customers might buy from you again?)
  • Brand premium (Can you charge a bit more due to the added value your brand is perceived to provide?)

Those are just a few of the many considerations when it comes to pricing. One thing we have observed, however, is that the small companies that tend to be profitable for a long time tend to price their products and services at generally lower or affordable market prices. That doesn’t mean they’re always the lowest but they’re in the ballpark and then they differentiate themselves in other ways. If you’re in a relatively uncompetitive industry or space, there’s always a temptation to try to maximize your profits by selling at a higher price say. But over time, management experts suggest you may not be able to sustain this, especially as new players enter the market and undercut your existing pricing. 

No 4: Reducing Spending on Platforms and Services That Aren’t Used

One of the characteristics of smart and profitable business owners is that they are vigilant when it comes to their costs. That’s probably not much of a secret. But when it comes to marketing expenses, those owners maintain that same rigor they do with other costs. With the availability of technologies and different capabilities in the marketing space, it can be easy to spend $12 per month here, $15 per month there on various technologies that help you promote your business. But one thing we would always say is that, if there is a marketing platform or technology you’re not using, it’s best to stop it immediately or reduce your commitments.

For example, a lot of the email platforms (Mailchimp, Constant Contact, Hubspot, etc.) are based on tiers with the number of contacts. As a small business do you go in and clean out spam contacts or those who are unresponsive? It pays to do this regularly as you will likely stay at a cheaper tier for longer (while also improving your email open and engagement rates).

How about that Zoom capability? Are you running webinars or do you just need Zoom meetings? For that matter, could you survive on a free Google Meet capability? A lot of small companies we know use inexpensive chatbots for their site, but then don’t look or get alerted regularly to whether anyone has submitted an inquiry! That’s a waste of money that can be used for other things.

Finally, it helps to have more cost flexibility when it comes to marketing agencies you might hire. Many agencies will try to get you to sign a longer-term contract (typically 1 year or longer) with no possibility of an out clause (except for termination for cause). But for you as a small business, you may not want to be locked in for that long. After all what if you realize off the bat that an agency doesn’t perform for you? If you’re just dipping your toes in the water for additional marketing help, there are plenty of agencies like ours that will do shorter-term commitments with continuations only if both parties are happy with the results.

No. 5: Maximizing Existing Customers Through Repeat Purchases

A lot of small businesses work really hard to acquire new customers. And it makes sense. In order to grow, they will always need to get new people in the door. But some of that focus can lead to not prioritizing those who’ve already bought from you. Indeed, for many businesses, their best customers are actually their existing base. Yet, many companies don’t pay attention to them.

One thing that is clear with the most profitable companies we’ve seen is that they focus on their best customers – i.e., the ones they’ve already acquired through purchase. If you think about it from a data perspective, the cost to get an existing customer to purchase again is a LOT less than what you’d spend to acquire a new customer. So, making sure you’re maximizing this is a critical part of being or becoming a profitable company. A few things you can do:

• • Draft an automated email series to previous customers who have bought from you before encouraging them to buy again.
  • If you have the capability and the right business type, consider offering a membership or subscription for services or products on an ongoing basis.
  • Create ongoing content that you can provide for customers who bought from you already. This can include how-to product videos, tips, Q&As, or other helpful content. The more helpful you are, the more they will buy from you again.

Conclusion

Like everything else, there’s no magic elixir that can suddenly turn an unprofitable venture into a profitable one. But if you maintain rigor and use some of the above, we believe you can certainly get there or maintain your profitability through even the toughest of times. As always, feel free to contact us at Marketing Nice Guys if you need help. We’re available around the clock to have a free consultation based on your needs.

[1] Obviously, much will depend on the type of business you’re in. B2B may not yield the same results though given it’s a free promotional outlet, it never hurts to be aggressive.