5 Things You Can Do To Build A Better Business

Key Takeaways

Establishing a new business, especially in the grip of a global pandemic, it’s tough. But, it’s possible, and, with a bit of foresight, you can put yourself in a position to build a solid foundation that can weather whatever crisis may come next. From making it easier to pay your taxes to understanding the psychology behind your pricing scheme, today’s Board Retailers Association post can help you find the balance you need to succeed.

Establish your EIN.

If you have yet to apply for an Employer Identification Number (EIN), now is the time to tackle this important business task. Your EIN, which might also be known as a tax ID number, is the way the IRS separates your business from your person. When you have your EIN in place, it’s easier to file your quarterly/annual taxes with both the state and the federal government. Having An EIN also means that you can open up a business bank account in your company’s name and it might even speed up certain processes, such as applying for business loans and establishing vendor accounts.

Learn to bundle and upgrade.

When you’re first starting out, you likely sell many individual products. But, one trick that major retailers already know is that bundling your anchor items with others, particularly those with a high profit margin, is a great way to increase sales. MSSP Alert explains that bundling is also good for your customers as it reduces their costs and makes purchasing simple. Another trick: change your pricing structure. While the old tried and true .99 ending sounds less than whole numbers, you are more likely to upsell a $20 item than you are one that costs $19.99.

Use credit wisely.

All businesses incur debt, and that’s not necessarily a bad thing. Even as a small business, having a separate credit card has many benefits. Not only can you separate your personal and business expenses, but you are also likely to enjoy a higher spending limit and, potentially, lower interest rate. Using your credit card for unexpected business expenses can also ensure that you have enough cash on hand for emergencies. Keep in mind here that it is all about balance. Don’t spend more on your credit card than you can afford to pay off in a few cycles, and make sure to collect customer payments on time so that you can pay off the debt you’ve incurred for their benefit.

Outsource your weaknesses.

You may be a retail maven, wakeboard aficionado, or surfing apparel expert, but that doesn’t mean that you are qualified to handle every aspect of your business. Don’t be shy about admitting your weaknesses. Many of us aren’t great with numbers, while others are a bit skittish with marketing or web design. You can hire someone to handle these and other tasks. Your options are to take on a full-time employee or a contractor, the latter of which you only pay when they complete a certain job, project, or contract.

Invest in training.

You know your business, but, like the areas where you need to outsource, you might not be an expert in all aspects. This means you may not be fully ready to train your employees on things like customer service, social media, and even store layout. For this, you’ll want to invest in professional training. You can use online platforms, such as Coursera, Alison, and EdApp, which allow you to handpick courses you’d like to offer your employees or, optionally, allow them to choose from a library of topics.

Everything you do to build your business today will make it stronger for tomorrow. The importance of this cannot be underscored enough, particularly during the pandemic when things can change with little to no notice. Whether you are just now establishing your business’s ID number or are looking for ways to train your employees, the few tips listed above will get you started by giving you the tools you need to build the success you desire.

If your business is into boarding, join the Board Retailers Association today. The $99 annual fee is tax-deductible and gives you many opportunities to network with like-minded retailers throughout the US.

Image via Pexels

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