Comments on: Trends: “Small Businesses more Profitable after 2009 Recession?”

By: Bermster

Bermster — Tue, 09 Mar 2010 01:32:41 +0000

Hey Erin – growth is a hard thing. Money or no money, figuring out how to scale your business in a smart way is one of the toughest problems a business owner has to go through. I think you’re in actually a better situation now though – with a limited budget you’re prioritization of important ‘swings’ gets tighter. Focusing on lots of ways/initiatives is tempting, but with limited funding it is vital you pick the top 1 or 2 areas where you want to put your time and money.

Now here comes the trickier part – picking those one of two areas that will launch your business to the next level. My advice…brainstorm on the complete (exhaustive list) of things you are doing or can do to increase growth. Put ROI numbers next to them. Be brutal. Now brainstorm how you can test the new initiatives with little money. Want to start selling to a higher target customer? Start by testing your way in. Spending lots of money and then finding out it doesn’t work it the quickest way to get to Red. Hope that helps.

Kristen (QuickBooks Online Product Manager and former small business owner)

By: Gary

Gary — Mon, 08 Mar 2010 21:56:13 +0000

If only government would do the same! It is frustrating to hear from so many organizations they simply “cannot cut”. Tough decisions were made by us the small business owners and government and non-profit organizations should have to do the same; not be bailed out, raise taxes, incur deficit spending or steal money from the stimulus bill to fund non-stimulus expenses.

By: Erin Callaway

Erin Callaway — Sat, 06 Mar 2010 17:01:28 +0000

I would appreciate thoughts on “organic growth” as well, as I am in exactly this situation. In January ’01 we eliminated a chronically money-losing segment of our business and as a result we’re seeing reduced costs across the board and improved profits.

That said, I understand that we now need to look at ways to actually grow, but as a very small business I don’t have much capital to invest.

By: btubbs22

btubbs22 — Wed, 03 Mar 2010 20:04:50 +0000

Ryan,

Great comment on the need to focus on top-line growth in addition to lean operations. However, I would imagine many small businesses still need to carefully monitor spending – any thoughts on creative ways to foster organic growth without large cash outlays?

By: Ryan Glasspiegel

Ryan Glasspiegel — Wed, 03 Mar 2010 19:36:52 +0000

That is great that they learned how to buckle down but profits growth as a result of cost cutting is unsustainable. If companies want to continue bottom line growth they will now have to do it via continuous investment. This can either be done in the form of capital expenditures or hiring/training to increase capacity and continue to innovate.