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Here’s How You Can Make Your Business More Profitable

Running your own business is very possibly one of the most rewarding experiences you’ll face in your lifetime. However to run your business smoothly and to make as much profit as you can, there are certain things to think about first. From the cost of a new computer to the price of coffee — now that you are a business owner, every little expense should be taken into account and quantified. Sounds fun, doesn’t it?

On a serious note, running a successful business gives you full control over your life in a way that nothing else can. You are your own boss; you can work your own hours and sit at home in your pajamas if you like! But to make your business more profitable, there are things to consider.

Make Realistic Goals

At the start of every month, make a list of what you want to achieve and where you’d like to be by the end of it. If you set out to make $100 then you can budget throughout the month in order to meet that target.

It’s all about knowing your limits but not being afraid to push yourself that little bit further each day. It’s simple really. A journal would be a great way to track your progress each month and look back at how much you’ve changed.

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Plan, Plan, Plan!

No business can work without a killer plan of action. So get up early, boil the kettle or turn the coffee machine on, sit down and plan. Plan what you want to invest in over the next year, what your business aims are, what colour your website should be and even how many staff you want to employ. Refer back to this every time you are unsure of anything.

Use The Right Resources

The key to a smooth running business is utilising helpful resources and software. Things such as CMS (content management system) for your website, business intelligence consultants for data management and even a system to help with your accounts. All of these things will help you to organise your affairs and run much more productively, allowing you to spend more time making profits.

Hire More People

There comes a time for every entrepreneur when you simply cannot complete the workload alone. That’s where employees come in. Consider hiring an extra pair of hands and you can even open up an office space to work from. Imagine the joy of watercooler conversations and a more productive workday. You can’t go wrong really, can you?

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Time Management

Time management is the single most important element to running a profitable business. Have you ever thought about the amount of time you could save yourself by writing a to-do list the night before? It will save your caffeine deprived self from fumbling around for the first hour of the day trying to figure out where you last left off.

It’s an essential thing. Make a list every night of what you want to achieve in the morning, this way you’ll never have to come in and take the time trying to get back into the swing of things. But remember, even if you are the boss, make time in your day for a break! We all need to relax sometimes.

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Essentials of Business Cash Flow and Why You Need to Know Them

If there is one term that a new business owner hears more than any other it is ‘cash flow’. As someone who is new to running a business, you may be aware that this is something that you need to worry about but may not be sure of the details. This may not be the part of the business that actually interests you! You may be far more fascinated with the creative or technological aspects of running your enterprise. Unfortunately, cash flow is something that all business owners need to know about and here are the basics that you need to learn.

What exactly is cash flow?

Cash flow is money. It is the sum of money that is moving in and out of your business. It is usually measured on a weekly or monthly basis.

Cash enters your business when a customer or client pays an invoice for a product or a service. In some businesses, they will pay immediately and this is typical in a shop. However, in other businesses, you will provide the product or the service and then you will issue them with an invoice. You will not get the money until that invoice is paid and this is where the problem can arise!

The ‘flow’ of money into your business has ceased. You can get around this because Interstate Capital provides spot loans to small businesses which you can use to get you by when invoices are paid late. It ensures that money is still flowing into your business.

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Cash flowing out of your business

Obviously, cash flow is not just about cash flowing into your business. Cash needs to flow out as well. You will need to pay for expenses such as mortgage repayments, rent, consumables, employee salaries and tax payments. These have to be paid on time. If you are late making a payment you run the risk of incurring a financial penalty or a fine.

Your business is described as having a “positive cash flow” if more money is coming in than is going out. However, if you have a “negative cash flow” you do not have enough money coming in to pay your bills and you are heading for trouble.

Why cash flow is vitally important to your business

Poor cash flow is one of the biggest reasons for new business failure. Yet some small businesses will survive. In general, the business owners that have a reserve of money to get them through the hard times will be the ones who are successful. This could be your own private savings or a loan.

Information and cash flow

You cannot work out how your cash flow is doing without information so get in the habit of generating a monthly cash flow report.

A quick and easy way to do this is to compare the total unpaid purchases to the total sales due at the end of each month. If your analysis shows that the total unpaid purchases are greater than the total sales due this indicates a potential cash flow problem.

Business Strategies That You Can Implement Today

When you start a new business, it can be hard to know how to get your name around to drive customers to you. Thankfully, there are many solutions to this problem that you can implement today to pick your business off of the ground.

Business cards are an effective way of getting people to recognise your brand. You can ask stores to display them, and you can attend networking events relevant to your business to hand your cards out. Getting your hands on business cards is so simple to do, and you can often buy them in bulk at reasonable prices. Be sure to design a card that recognisable and eye catching.

Adverts. These can be posters around town, newspaper articles, billboards, social media promotion, paid advertising through Google Adsense, radio advertising and TV adverts. There’s no limit on how much you can get your name around. Of course, the cost of advertising does come into play, but eventually, it will pay for itself when your customers start rolling in.

Image Credit: Pexels

Inbound marketing agency companies offer you a way of getting your name around and help you grow your business. They can advise on how your website uses SEO (search engine optimisation) and even help with social media promotion.

Social media is a powerful tool that you can use. Creating tailor-made posts that are exciting for people to see will increase your chance of it being shared. Showing off your skills in a video clip is a great way to make your company page go viral. Posting regularly and interacting with your customers is also important too.

New customer discounts are a brilliant way of getting people to try your service. No one can resist a discount, and you could also reward your current customers in some way too. Not only will this help you keep your already existing clients, but it will show that you’re a great brand to work with and attract attention to your service.

Developing your brand is also an important thing to do. Be consistent with your logo that you use, and try to stick to the same colour scheme. The easier your brand is to remember, the more likely it is for people to think of you when they need that particular service.

Image Credit: Pexels

Have a business plan that is continually growing. Set yourself milestones, and once you’ve achieved them, you can set up more to aim for. Make sure you think about what your clients are looking for when they come to you, and try to improve on that service.

Be available as much as possible. Decreased availability will put potential clients off, so make sure that you’re at least available to answer questions for anyone inquiring into what you do. If you’re unavailable, try to make it so that someone else can step in. A 24-hour service is a fantastic way of gaining clients.

Whatever it is that you do, if you can apply these steps to your business strategy then you’re sure to gain from it. Remember, exposure is key, and customer service is very important. Good luck with your enterprise!

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