Intelligent SME.tech Issue 11 | Page 22

? EDITOR ’ S QUESTION //

YOUR BOTTOM LINE IS
PROFITABILITY – MORE
CUSTOMERS
SPENDING MORE , WHILE TIGHTENING
YOUR EXPENSES AND STILL
OPTIMISING FOR QUALITY .

Y our bottom line is profitability – more customers spending more , while tightening your expenses and still optimising for quality .

Now , how do I get my competition on board to help me ? Let ’ s kick off with growing the customer base , finding new customers from within your community and ultimately expanding your community .
Today ’ s online marketplace looks a bit like Takealot . And Takealot knows a lot about its customers ’ data analytics : what they search for , what they buy and based on similar profiles of other customers , what they are in the market to buy next .
Chances are pretty high that the purchase of outdoor furniture will lead to a second upsell of complementary cushions from a different Takealot vendor . Targeted advertising showcasing designs and ranges of outdoor furniture accessories will follow shortly after the initial purchase , highlighting how to use the initial sale to upsell . Not wanting to lose out , hopefully the outdoor furniture manufacturer might also sell cushions and present his new customer with a direct offer for matching cushions too .
Complementary products and services exist all around us ; a dishwasher machine needs dishwasher tablets . What is your business ’ s collaboration companion ? How do you engage with that companion to grow your combined marketplace ? Estate agents love giving welcoming baskets to new homeowners , a voucher from a local restaurant is the perfect gift for move-in day . And so , the estate agent ’ s community morphs into the local restaurant ’ s community .

REVENUE IS
A MINIMUM REQUIREMENT , BUT SUCCESS IS MEASURED IN PROFITABILITY , SO MANAGING EXPENSES IS ESSENTIAL .
Revenue is a minimum requirement , but success is measured in profitability , so managing expenses is essential . Bulk buying power does not need to be limited to the ‘ Massmarts ’. By forming an association or industry group , similar purchasing power is available to small business owners too . Think of a class action suit ; if each plaintiff took separate legal action , the combined attorney fees would be many more zeros than the single class action , and cost aside , the success of the litigation increases with the combined case .
Similarly , in the world of rentals , your lease agreement is not the competitive edge over the competition . TPN and our drafting attorneys understand that a legally sound lease agreement is critical to any future potential tenant / landlord dispute . But the legal cost of maintaining lease agreements in the ever-changing legislative landscape can place a burden on each individual estate agent . A collaboration of a single set of up-to-date LeasePack agreements means that standardisation for tenants , landlords and property managers is cost-effective for each individual agency and the law is applied consistently .
Collaboration is a mindset – we are not limited to smaller slices of the pie , let ’ s just build a bigger pie .

MICHELLE DICKENS , CEO AT TPN CREDIT BUREAU

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Intelligent SME . tech