Building Blocks to Increase Small Business Profits

   Building a small business from the ground up is not at all a simple task. It involves strategic and consistent endeavor in the right direction. Being an owner of a small business, you must hold your head up and look right into the opportunities with a clear mind.

The most fundamental building blocks of any business are processes (policy/procedures), resources and consumers (capital/ideas) and human asset (workers). Any small business owner, who can recognize and reinforce each of these inevitable building blocks, can easily reach new heights.

In today’s competitive business industry, there are several strategies to generate sales, earn a profit and build an empire. But regardless of the industry, you belong to, your ability to grow a small business into a profitable one is the basic key to success.

Now we can see that regardless of the market, only 20% of the businesses have the potential to earn almost 80% profits in their particular industry. Even business, which are offering generic and similar services as that of their competitors, earn 20 times more than other businesses.

So what is their key to business success?

The key to business profit has always been the same i.e. to find a need and to fulfill it. But what makes a small business, a profitable venture, is how fast your business caters the need of your consumers. How you ensure to give your consumer a reliable and faster service than anyone else.

This is only achievable when businesses keep the effective process in effect. These businesses are established on some building blocks that are aimed to define and redefine business processes, monitor poor or defective service and make consistent improvements.

Building Blocks to Increase Small Business Profits

Being an entrepreneur, the most crucial question you can always ask and answer is; what can be done to increase the current value of the products and services to my existing customers?

To answer this question; let us have a look at the fundamental building blocks for a small business in order to increase business profitability.

Owners Frame of Mind

Being an owner, you need to first make a mental shift from simply running a self-employed business to actually building a business you can scale, sell or own passively.  In other words, you need to keep reminding yourself that you are developing a business with your strategic business operations.

Keep recalling the primary objective of starting this venture. Your personal as well as your company’s vision, even if they are different but aligned. Get a consultant, who can jump ideas off and keep a track when you are losing money, time, as well as the frame of mind you once had on the first day of launching your small business.

When momentum fades and money gets tight, you get stuck doing BAUs and without actually developing your business. You stop striving to increase business operations by acquiring customers and improving product. Every small business owner comes to a point when running a business, makes you burn out or have uninspired feelings but this is exactly when you need to maintain a positive frame of mind. To fight off the uncertainties you must envision increasing profit.

Standards and Controls

Standards are the procedures and processes that protect your business operations from inappropriate and hasty decisions. When you run your business with pre-defined SOPs and internal controls, you make sure the key work is being done and in the right manner.

Initially you can incorporate the four types of control including;

  1. Scorecards or Key Performance Indicators
  2. Checklist or Visual Business Process Controls
  3. Procedures and policy – measured/written
  4. Internal quality controls – process/product quality checks


You cannot establish and run a business all alone. A great organization can be based on a single idea but to turn that idea into reality, it requires teamwork. Don’t make your business to depend on the talent and existence of a single individual.

Teamwork makes your dream works. You need the right team to help your business carry out, deliver, and share your vision with the outer world. It is one of the basic building blocks for both a small scale and large business.  Surround your business with the top-skilled individuals. Hire smarter people and step back and allow them to perform their jobs.

It is said that athletes don’t win the championship but teams. When you hire a team, you hire them to either decrease expenses or increase revenue to get more business profit.

Financials and Cash Flow

Financial Statement and cash flow is the lifeline of the business. Thus, it is highly imperative to understand your business’s profit and loss declarations. You must understand all the treatments and procedures that increase the earning of your business.

Make the use of right tools to manage as well as track assets and finances. Particularly mid-size and small businesses have more need to master the ability to professionally manage the cash flow and working capital. Having complete insight on cash flow and financial statements is essential to manage business resources for the right reasons.

Customer Relationship

For a small business customer acquisition might be an expensive option. If you own a small business and you want to increase its profit, it is very necessary to target, market and effectively convince customers to try your services or product.

Oftentimes it is easy to acquire new customers than to retain the existing ones. Many small business owners pay least attention to figure out their target customers. With that, it is important to keep your customers engaged by communicating through different platforms like email marketing or social media. Create your brand identity on these social platforms by meeting customer needs while focusing on your business’s objectives, goals and most of all profitability.

Conclusively, all of these factors are highly crucial to create a strong foundation of your small startup. If you establish your business by incorporating these fundamental elements in your business plan, your business will flourish in no time. Every entrepreneur looks for profit-making opportunities. Thus, continue to add value to your business as well as your customers.