UMKM have great growth potential, but the challenges are equally significant. Many business owners still struggle with classic issues such as messy financial records, minimal marketing strategies, and uneven access to technology. Yet, amid digital growth and increasing online shopping interest, the opportunity to boost profits is wide open—if you know the right strategies and tools to use.
Driven by this spirit, Labamu, Everpro, and Rumah BUMN Bandung recently collaborated to support UMKM owners in leveling up their businesses. Even though the event has ended, the momentum can continue—helping you take your business to the next level, increase profits, and achieve real growth.
Why Many UMKM Struggle to Make Profits?
Every business owner wants profit—or “cuan.” But profit isn’t just about the numbers in your account. It should also indicate that your business is healthy, growing, and strong enough to survive amid competition.
Unfortunately, many UMKM still struggle to reach this point due to various obstacles that can actually be overcome with the right strategies and tools. Here are five common reasons why many UMKM haven’t maximized their profits.
1. Financial Management Is Still Messy
Many UMKM owners mix personal and business finances, fail to record income and expenses, and sometimes don’t even know if their business is truly profitable. Without clear records, making the right business decisions is impossible, leading to uncontrolled cash flow and difficulty measuring growth.
2. Marketing Is Unfocused and Ineffective
UMKM often rely solely on word-of-mouth promotion or random social media posts. Without a clear strategy and understanding of consumer behavior, marketing becomes a waste of time and effort. Yet, with the right digital approach, the results can be far more effective.
3. Digital Channels Are Not Fully Utilized
Many UMKM owners don’t yet know how to fully leverage marketplaces, social media, or business support apps. As a result, their market reach remains limited, and growth opportunities are constrained. In fact, digitalization can make operations more efficient and increase product visibility.
4. Great Products, but the Business Isn’t Ready to Scale
Many UMKM have high-quality products but struggle with mass production, distribution, or operational systems. This makes it difficult for the business to scale and compete with more structured competitors.
5. Overwhelmed by Managing the Business Alone
Many UMKM owners take on all roles themselves—from production, marketing, and finance to delivery. Without proper systems or tools, energy depletes quickly and focus gets divided. This keeps the business stagnant and makes consistent growth difficult.
Also read: Labamu x LiftWomen: Empowering Women in UMKM to Level Up and Thrive
Powerful Strategies to Boost UMKM Profits
After understanding why your business hasn’t reached its full profit potential, it’s time to make improvements. Here are strategies you can implement to boost your business profits.
1. Separate Personal and Business Finances
This step is simple but crucial. By separating your business and personal accounts, you can clearly track cash flow, calculate profits, and create accurate financial reports. It also makes it easier when applying for financing or partnering professionally.
2. Build a Digital Marketing Strategy
Start by understanding who your target customers are and where they spend their time—Instagram, TikTok, WhatsApp, or marketplaces? Use these platforms strategically, such as through educational content, periodic promotions, or collaborations. With the right digital marketing approach, your products can reach more people without a large budget.
3. Utilize Digital Tools to Manage Your Business
Point-of-sale apps, automated bookkeeping, and inventory management tools can help you work faster and stay organized. Digital tools also allow you to monitor your business performance in real time, enabling faster and more accurate decision-making. This is essential not just for survival, but for business growth.
4. Improve Product Quality and Variety
Continuously evaluate your products to see if they meet market needs. Try adding small innovations, such as new packaging, new flavors, or relevant additional services. This can build customer loyalty and open new markets without major promotional costs.
5. Join Communities or Mentorship Programs
Joining UMKM communities or training programs can give you access to new knowledge, networks, and collaboration opportunities. You can also learn from the experiences of other successful entrepreneurs. This kind of support can help your business level up faster. You can join the LabamuHub community to start.
A successful business isn’t just about having ideas or big capital—it’s about having the courage to change and try new things. The collaboration between Labamu, Everpro, and Rumah BUMN Bandung may have been brief, but its impact and benefits can last a lifetime if you start applying the small lessons you’ve learned today.
If you feel your business is stuck in place, now is the time to look inward and identify what can be improved to help it level up.
Fortunately, you don’t have to go it alone. Labamu provides a comprehensive business management app that simplifies daily operations. For marketing and distribution, Everpro helps your products reach more customers online. Meanwhile, Rumah BUMN Bandung offers mentorship and collaboration opportunities to strengthen the UMKM ecosystem, helping it grow and thrive.
