Own A Family Business? Here’s How To Make It Profitable

Family businesses are the backbone of the UK economy. According to a study by the Federation of Small Businesses, family businesses account for 59% of all private-sector employment in the UK. However, many family businesses are struggling to stay afloat. This blog post discusses ways to make your family business more profitable.

Reinvent your marketing strategy

The danger with a business that is based on tradition is that it can sometimes find it more difficult to move with the times. But also the innate nature of the family business is that young family members are brought in from the earliest age and often given senior responsibility when they are relatively youthful. This provides the family business with a unique way of bridging the generation gap. 

Nevertheless, if the balance between tradition and modernisation isn’t just right, the family business can quickly fall behind. This is particularly critical when it comes to marketing strategy. To remain competitive in the modern world, it is essential to consider new digital channels for marketing. For example, investing in a website and social media presence can help boost your visibility and reach a broader customer base. Additionally, search engine optimization (SEO) and influencer marketing can help to increase your online visibility. The business owners affiliated with gosmallbusiness.co.uk recommend that family businesses update their marketing strategy every few years. This way, they will remain on top of the latest trends and ensure they use the most effective tactics. For instance, take advantage of digital applications such as WhatsApp, Instagram, and YouTube to increase sales. 

Leverage technology

Technology is constantly changing, and businesses must adapt to remain competitive. Investing in the latest technology can help streamline operations and improve efficiency. This could include adopting cloud-based software or automation tools to automate routine tasks or investing in data analytics to gain real-time insights into the customer base and market trends. Additionally, adopting a mobile-friendly approach can help to make it easier for customers to shop online from their phones or tablets. When your family business is equipped with the latest technology, you will be better able to respond quickly to customer demands and provide better service.

Encourage entrepreneurial-minded culture

It is crucial to create a culture that encourages innovation and risk-taking. This can help your family business stay ahead of competitors by introducing new products or services and adapting to changing trends in the market. You can start by providing employees the autonomy to make decisions and encouraging them to come up with fresh ideas. Additionally, provide training and learning opportunities to help employees develop their skills and stay up-to-date with industry trends. And you should reward innovators and recognize new initiatives to create an environment where entrepreneurship is valued. This will help your family business become more agile and quick to respond to changes in the market.

Focus on customer service

Excellent customer service is essential for any business, and this is an area that family businesses tend to excel. After all, you don’t survive for more than a generation without understanding the value of looking after your customers. But it’s always worth refreshing in this area, particularly at a time of change. Providing excellent customer service can help build a loyal customer base and generate repeat business. You can start by identifying your target market and customizing your services to meet their needs. For example, you could offer personalized products or customized services. Additionally, use customer feedback surveys to continually improve the customer experience and ensure that you meet their expectations. Make sure that your customer service representatives are knowledgeable and friendly so that customers have a positive experience. This means providing them with the proper training and ensuring they have the right attitude. 

Referral incentives

Offering referral incentives is another effective way to increase your profits. Encouraging existing customers to refer you to others can help you reach a larger pool of potential customers. Consider offering discounts or free products for successful referrals. The discounts need not be substantial but enough to make the referral worth their while. You could also consider launching a loyalty program, where customers can earn points for referring others and then redeem those points for discounts or other rewards. This will help your family business build long-term customer relationships and create an engaged community of raving fans. Additionally, you can use social media platforms such as Facebook and Twitter to spread the word about your referral program.

These are just a few ways to make your family business more profitable in the UK. By leveraging technology, encouraging an entrepreneurial-minded culture, focusing on customer service, offering referral incentives, and maximizing profits, your business will be well-positioned for success. With careful planning and implementation of the right strategies, you can ensure long-term success for your business.