April 24, 2017
One financial area that many small businesses are concerned with is their return on investment. Once you’ve put money into your business, you want to see proof that that money is coming back into your business, which is a great indicator that you’re seeing success and that your business will have some longevity. However, finding and improving ROI can be challenging for many small business owners. To help with these two areas, here are three tips for improving the ROI for your small business.
Redefine Your Idea of A Return
A good return on an investment will vary between different businesses. Knowing this, it doesn’t make sense for you to be judging your business off other people’s idea of a good ROI. You have to discover for yourself what your business deems as being valuable returns on your investments. In accomplishing this, Sam Ashe-Edmunds, a contributor to Chron Small Business, suggests potentially expanding your idea of the type of returns you’re looking for. A good return for your business could include better sales, more profits, lower overhead, better customer satisfaction, greater brand awareness, and much more. Just figure out what is most important to you and work on figuring out how to make achieving that goal happen in a financially responsible way.
Look At The Right Online Metrics
One simple way that modern businesses can learn what their online ROIs are is by looking at their analytics. If you have a business website or blog, you likely have access to a number of analytics that will give you metrics regarding certain areas of your site. Because your website or hosting service automatically keeps track of this data for you, it’s very easy way to see if you’re on track with your ideal ROI. However, Shayla Price, a contributor to KISSMetrics.com, shares that many online businesses are looking at the wrong metrics to gauge their online ROI. Her advice is to avoid the vanity metrics, like how many followers you have, and look more at things like the level of engagement you’re getting. These are much better indicators of ROI.
Take Advantage of Social Media
Using social media can be a great way to boost the current ROI of your business. Faiza Sareah, a contributor to SmallBizTrends.com, shares that to get a good ROI in your social media efforts, businesses should always be looking for ways to improve reach, engagement, perception, conversions, and click-throughs on social media. By having these metrics as your focus, you’ll see a much better ROI for your online networking efforts.
If you’re concerned about your business’s ROI, use the tips mentioned above to help you get a better handle on this area of your progress.