We are truly blessed to say we are ‘lifting out of COVID’ however, we can agree that organisations have a challenge AND opportunity to re-evaluating operating models.
Besides revising your marketing strategy [important!], there are 5 other ways you can increase your business profit into 2021.
Flexible Staffing
Your team is your biggest asset and likely…. your greatest overhead. Communicating openly with your team and employing at reduced or part-time hours will free up cashflow and help you retain relationships and skills.
Alternatively, engaging contractors or outsourcing can help reduce costs and enable greater scalability and flexibility.
Since April, it’s been very rewarding to work with many CTOs and SMEs directly to identify several full-stack developers for 3-6 months engagements.
As organisations tread with measured excitement into 2021, the ability to scale up and scale down team size and capabilities will provide welcome flexibility.
Focus on Your Customer
Be responsive to existing customer needs to improve retention. However, narrow down on who you will focus on. In 2021, it will become more apparent which of your target industries can afford your services. Then, listen listen, listen and deliver to meet expectations.
Create new revenue streams
Diversification, should it not distract the company’s focus, can help minimise the impact of losing other clients.
A new revenue stream may be adapted from an existing offering but enable you to service new customer needs. In this instance, profits can increase without causing big increases to your cost of goods sold or operating expenses.
Although 3 Dot Digital’s core business is delivering technology solutions and projects, during COVID, we continued to support startups and larger enterprise through our new revenue stream ‘Talent on Demand’.
Cost Efficiencies
Reducing business costs can raise red flags when the quality of the work is compromised or team morale is at stake. Keep your cashflow projections up to date and try to focus your cost cutting on your office operating expenses. Further to that, have open and honest conversations with your suppliers as they may be able to demonstrate greater flexibility than you think.
During COVID, our team welcome candid conversations with 3 Dot Digital’ client organisations who were struggling because their client bases declined overnight. We were able to provide a level of flexibility that benefit both organisations over the longer-term. The good news…we are still working together!
Partnerships
Is collaboration too much of a buzz word now? Regardless, it is more useful than competition! But who to partner or collaborate with?
My suggestion:
- Draw a circle with your ideal clients inside (e.g Entrepreneurs).
- Draw a larger circle around the first and write down other stakeholders who are one step removed from your ideal clients (e.g Investors, Board Members)
- Draw another larger circle around the second and write down stakeholders who are 2 steps removed from your ideal clients.
Consider these individuals or organisations as potential partners.
To understand how partnerships can help you expand your organisation across borders (particularly when international travel is limited), check out the Tomorrow’s Tech episode featuring Vanessa Garrard.
2021 on the horizon
Hoping to hear of your success stories in implementing a few of the strategies above.
The 3 Dot Digital team has been on the journey ourselves in 2020 and will continue to support other organisations through our provision of technology services and solutions to startups and enterprises.
If you feel 3 Dot Digital could help deliver the flexibility of staff you require, cost efficiencies or a new line of business, we welcome a conversation and a coffee!
Author’s Note:
Allow me to also credit to Richard Spencer’s article: ‘6 ways of increasing business profit during tough economic Times’ [Published 2 November 2020]