Small business owners must meet many critical milestones to remain profitable, popular and productive. Here are three ways that certain milestones can be reached with the right assistance and resources.
Sustainable Revenue Flow
Many small business owners may not realize that running out of cash is a common reason for startup failure. Cash flow management is something that some small business owners expect to learn as they go, but reaching and sustaining positive cash flow is an exact science.
Accounts payables are just as important as receivables when boosting cash flow. It’s important to understand the payment norm of the industry to delay payment until the end of the accepted norm. It is wise to do less business with suppliers who demand faster payment. In the end, some companies outsource accounting to professionals to keep their company financially healthy.
Utilize Available Resources
Opening up and running a small business quickly accumulates a lot of debts and expenses. Liquidating assets isn’t just an exit strategy for closing businesses. Many small businesses liquidate a small volume of assets to quickly increase cash availability. Some companies sell the building that they own, then lease it back. Others may even sell their accounts receivable to a third-party finance firm.
Some small business owners take advantage of commercial loans because they typically offer the lowest interest rates. These long-term loans, which sometimes come with extended payment plans, are available from three to 10 plus years. For example, commercial construction loans are popular for small business owners who prefer a single loan that reduces overall investment risk.
Progressive Marketing Strategies
The value of scalable marketing strategies cannot be underestimated. A small business owner typically earns most of their early sales from people that they know. As time goes by, a personal connection and word-of-mouth marketing strategy will reach its limits. It will then be time for a flexible marketing approach that meets the needs of a growing business.
With the right technology solution, it’s easy to adjust brand, content, and advertising without relying on a marketing team. This is possible through pre-formatted temples and standard content adaptation rules. Technology empowers small business owners to more easily measure their marketing campaign performance through analytics and digital feedback.
Finally, customer loyalty can be achieved through realizing that certain incentives, instead of products, keeps customers returning. Most businesses achieve this through loyalty programs that offer free gifts, cash back, and select discounts.