Focus on quality, not quantity, to maximise business growth
Crafting impeccable, high-quality products takes time. It’s why so many businesses often opt to take a different route to success, prioritising quantity over quality. They hope that by pushing for more sales they can increase their profits. For a while, this might work, but in the long run, this strategy is unsustainable if you want your reputation and cash flow to remain strong. If you want to maximise business growth, you need to know where to focus your attention.
Putting in more hours crafting the perfect product or service means more money spent on its creation. This means you must sell it for a higher price. Here, the worry might be that the higher price will be less desirable to your customers and therefore cause you to lose out to cheaper competitors. In some cases, this can be true.
A high-output, average-quality business model can be profitable. However, the success of this model relies on what type of business you are running. It might be better suited to one that produces products, rather than provides services.
If your product or service becomes known as being low quality, easy to break, or not worth the money spent, you’re in serious trouble. 50% of businesses fail within the first five years of establishment. It takes time to get your idea off the ground and for people to get to know what you’re offering. You want to make sure when they do, they like it. If they don’t, your customers will leave you faster than they came, and your overall sales will take a huge hit when word gets out – and it will. Social media and internet reviews will not be your friend and will probably deter many new customers.
You might find that although better quality products and services cost more, people will be happy to pay for their longevity and the extra value they add. If you’re offering a service, you’ll more than make up for the money you miss from the sheer volume of customers with the higher price of your services. If you’re selling a product, you’ll find that, over time, as you build a reputation for being trustworthy, durable, and effective new customers will happily come your way, bringing friends, family, and any recommendations they have made over the months. It all starts with impeccable product design.
So, when you start your business, or if you’ve noticed your business is taking a downward turn, perhaps share a thought for the quality of your service before you become fixated on the volume of your customers. You’ll find more often than not that a bad product is bad business.
At Big Hand, we want all SMEs to get off on the right foot. Our experts offer business advice to ensure you’re in the best position possible to take your SME to the top. And, to make the whole process easier, we offer our accounting services so you have one less thing to worry about. All you need to do to get started is get in touch on 0161 327 2911.