Ken Mergentime 

Small business owners running sign and commercial graphics shops know that competition can be fierce, and resources scarce. Anything they can do to improve the bottom line is worth considering. After all, small business owners are used to working hard to gain an edge.

Typically, when strategizing on ways to increase profits, shops spend a lot of time, money and energy focusing on attracting new customers to generate additional sales. Perfectly logical, but that may not be the best approach.

Working smarter—not harder—is the key to boosting the bottom line. If you step back a moment and think about it, there are more efficient ways to improve profitability than a scattershot campaign aimed at pulling in new customers. Improving net earnings can also be achieved by controlling costs. You can do this by increasing productivity, marketing resourcefully and tightening your credit terms.

Productivity can be significantly improved by implementing a good employee training program. Well-trained employees who know the scope of their jobs and are held accountable for their productivity can save companies thousands of dollars each year. Along with training, productivity tracking programs can identify which employees are excelling at their jobs and which under-performing employees need extra support.

Marketing is key, of course, but smart marketing requires paying close attention to the return on the investment put into advertising channels. Common thinking has it that you set up a sales growth goal and market like crazy until the goal is achieved. However, instead of focusing on growing sales by 20 percent during the next six months, look for ways to decrease the cost per customer acquisition by 20 percent.

Start by targeting your marketing to existing customers by offering enticing add-on goods and services that improve the quality of the main product. These high-value patrons are more likely to purchase additional items because they already believe in your shop. This approach not only strengthens customer satisfaction/retention but also boosts sales.

Another smart way to improve the bottom line is to deal with the late-paying customer accounts that inhibit your shop's cash flow and suppress profitability. If you have multiple delinquent accounts, it's a sign that your shop's credit terms may be too loose. Revise the general terms by implementing late fees or charging interest on unpaid invoices. Rein in the amount of credit extended to chronic late payers by requiring partial payments before a new project begins. An affordable installment plan can also encourage clients to reliably send in that check for services rendered.

These are just a few ideas on the art of working smarter. I'm sure you can think up more.