So you’re ready to make the move from small business to a growth business.
You have made it through the first couple of years of operations, taking the time to focus on laying a positive foundation for your future. Now, your mind naturally turns to expanding your customer base and making your mark in new locations.
With this kind of expansion comes a natural amount of risk. After all, you are going to be investing in new markets, and this requires testing, measuring, and money. If you want to achieve profitable growth in your business, you need to keep an eye on the basics and ensure you keep things moving along while you’re scaling.
We want to show you how to achieve this with minimum hassle and maximum outcomes.
Cash Is King – Keep An Eye On The Cash Flow
You absolutely need to have enough cash flow available to be able to pay creditors and to ensure that your business can function from day to day. A lot can get in the way of cash flow; whether it is equipment expenses eating up your profits or debtors who haven’t paid their invoices leaving you high and dry.
Without strategies and plenty of back-up cash to support you, you can find that a couple of months of unpaid bills leaves you in a pretty tough spot.
- Keep a good eye on your cash and ensure you modify payments with suppliers, chase down customers early, and cut down your expenses if things are looking grim.
- It might be a good idea to offer an incentive to your clients to pay you on time – that way, you will find that people are more willing to make early payments, which saves you the hassle of following up.
Keep An Eye On Finances And Don’t Confuse Turnover With Margin
It can be incredibly exciting to see the amount of money coming into your business as you begin to expand – but do not confuse your turnover with your profit.
If you are spending a great deal more than you were previously to make more money, you will find that your business is not going forward as rapidly as you might like it to.
- Focus on staff costs and office costs as your key areas of focus.
- Ensure you are keeping your profit margins fairly similar to what they were before you focused on growth.
Chase Down Invoices From Customers And Do Not Tolerate Late Payments
Again, getting paid on time is a huge part of keeping your business running. A late payment can cause real problems for a business looking to expand.
Keep track of your business finances and ensure you know what is coming in and what is going out (and when). This will help you to stay on top of things and ensure you know when people are late.
- It can be helpful to work with a debt collections agency like Strathmores if you do have people or debtors who are consistently late.
- A simple letter of demand may be enough to get them to pay, while maintaining a strong business relationship for the future.
Focus On Your People
As you grow your business, look for ways to increase the productivity (and thus the profitability) of your operation. Spend time on training your staff, focusing on how you get give your team more opportunities to show their skills.
- You want to develop a culture where people are focused on learning as much as they can and sharing it with each other.
- Ensure you are documenting your processes and allowing others to learn from their teammates whenever you have a new recruit.
Contact Us To Grow Your Business Today
Are you looking to grow your business? Do not let the issue of cash flow have a negative impact on how far you can go with your organisation.
At Strathmores, we are the helping hand business owners need to get ahead. We make recovering debts a straightforward procedure, which means your cash flow is not impacted and you can focus on the more important things. Get in touch with us today to get started.