Running a business on tight margins is more common than many people realise. Whether you’re operating a small food stall, a boutique retail shop, or a growing logistics company, the early years often feel like a constant balancing act where you’re stretching every peso just to cover your costs. Even with strong demand and a clear value proposition, thin profits can leave little room for error.
But the situation doesn’t have to stay that way. Plenty of successful businesses started out facing the same challenges. What sets them apart is their ability to adapt, refine, and make strategic decisions that gradually shift the balance from barely breaking even to building long-term sustainability. With the right support, it's possible to improve your margins without compromising on quality or customer experience.
At Maya Business, we understand the day-to-day realities of running a lean operation, and we’re here to help make it easier. This feature shares practical strategies to help you move your business toward profitability, even when you’re working with limited wiggle room.
Build a Stronger Cash Flow Position
When funds are tight, the timing of your income and expenses becomes just as important as the total amount. A healthy profit on paper doesn’t help much if you can’t pay your suppliers, staff, or rent on time. That’s why managing cash flow should be one of your first priorities when aiming to improve profitability.
Start by shortening your receivables cycle where possible, for instance, by encouraging faster customer payments, offering early settlement discounts, or switching to more efficient invoicing tools. On the other side, you may also negotiate longer payment terms with vendors or look for ways to stagger large expenses. The goal is to keep your operations funded without constantly dipping into emergency reserves.
For times when you need extra breathing room, a flexible business banking loan solution like Maya Flexi Loan can save the day. We’ve expressly designed this product around the needs of startups in search of reliable loans for businesses. Instead of locking you into a fixed loan amount, it gives you access to a revolving line of credit of up to PHP 2 million that you can draw from as needed. You can use that extra capital to cover gaps in cash flow, take advantage of bulk purchase discounts, or respond to urgent needs, all without straining your daily operations. With a manageable fee structure and a straightforward repayment process you can complete right in the Maya app, it’s easy to see how Maya Flexi Loan is rapidly becoming the business loan Philippines’ entrepreneurs turn to in a pinch.
Refine Your Product or Service Mix
Not every item on your menu or shelf may be earning its keep. Many small businesses carry products or services that generate volume but not much profit. In some cases, they may even be costing more than they bring in.
Take a closer look at what’s really driving your margins. Identify your top performers not just by sales volume but by profitability. From there, you can start trimming low-margin offerings, bundling higher-margin products, or repositioning underperformers to make them more appealing. Sometimes, simplifying your lineup can improve cost and inventory management while also creating a clearer value proposition for your customers.
Improve Operational Efficiency
Behind-the-scenes improvements often have a bigger impact on your bottom line than chasing more sales. When your operations run smoothly, you’re able to deliver faster, with fewer errors and lower costs, all of which directly improve profitability.
This might mean tightening up your inventory management to avoid overstocking or waste. It could involve automating repetitive administrative tasks or switching to digital tools. It’s also never a bad idea to consider outsourcing non-core functions like bookkeeping or customer support. Even small changes, when applied consistently, can lead to meaningful cost savings over time.
Find Ways to Boost Average Order Value
Encouraging each customer to spend just a little more per transaction can yield big results, especially when margins are slim. Instead of focusing solely on increasing foot traffic or online reach, consider how to get more value from every sale you already make.
This could involve offering smart product bundles, limited-time upgrades, or loyalty perks tied to spending thresholds. If you run an online store, subtle checkout nudges, like free shipping for orders above a certain amount or personalised recommendations, can nudge your average order value upward without significant added costs. Done right, these techniques enhance the customer experience while improving your revenue efficiency.
Focus on Retaining Existing Customers
It can be expensive to chase new customers, particularly when your marketing budgets are tight. That’s why strong retention efforts are one of the most cost-effective ways to boost profitability. When customers keep coming back, their lifetime value increases, and your cost to serve them usually decreases over time.
Start by making the post-purchase experience smooth and memorable. Send thoughtful follow-ups, ask for feedback, and offer meaningful incentives to return. A simple loyalty program or a personalised touchpoint can go a long way. Satisfied customers are more likely to refer others, which creates low-cost growth through word of mouth.
Take Your Venture from Surviving to Thriving with Maya Business Solutions
Though working within thin margins can be overwhelming, rest assured that you won’t be scrambling to maximize every last peso forever. Sign up for Maya Business today, and we’ll immediately give you access to our suite of enterprise-grade business banking and payment solutions to help you get off the ground.
Once you set up your Maya Business account, you can open a Maya Business Deposit account and use it as your settlement account. With an industry-leading 2.5% per annum interest rate, you’ll earn PHP 25,000 in interest per year on a PHP 1 million deposit. This also allows you to send money to your partners and suppliers for free via InstaPay and PESONet, which means more savings and fewer pesky fees to worry about.
Signing up also qualifies you for a no-collateral Maya Flexi Loan offer of up to PHP 2 million in just 3 months, which gives you access to another source of capital you can tap into when you need it. Just use Maya as your primary processor for all wallet and card payments. The more you use our solutions, the better the loan offer will be.
Open an account with Maya Business today, and you’ll enjoy all these benefits and more right out of the gate.
