The growing pains of a company trying to expand are normal. The challenges you face as a small business owner come and go, but with the proper planning and prep work, you can get through anything like a truly experienced professional.
Positive Cash Flow
New business projects open as our company expands, and we get exhilarated with new ideas to market. But sometimes we end up spending a bit more than expected. After all, it takes spending money to make more money. Maintaining this steady cash flow is a difficulty that causes several small businesses to fail. By either spending too much or not making enough; or a combination of both.
Keep a tight grip on spending. Ideally, you have a budget plan in place already for your business. As marketing trends change, so should your budget plans. Cut costs whenever possible, and reevaluate your business finances to adjust for long-term cash flow. Secure any additional business financing, like Idea Financial, to ensure you have capital on hand for unexpected issues.
There are several proven strategies to improve on cash flow for your business.
Supply Chain Flow
Can you imagine meeting the demands of your customers if you run out of your supply? Even large companies, like KFC, face supply chain problems. 900 stores were closed, but unlike KFC which is a large corporation, not everyone can close their shops so readily.
Keep monthly, bi-annual, and annual marketing data of your customers along with goods and services sold. By using this data, you can lookahead with medium and long-term sales. Using the research can estimate how it might affect your supply chain.
It’s also beneficial to maintain a circle of large and diverse network suppliers, so you always have an alternative to fall back on if your usual partner cannot meet your needs.
Inventory Management
An aspect of business management that combines supply chain flow and cash flow together is inventory management. We love it when our businesses grow and bring in more customers, but we hate having to deal with more stock and supply. Managing through this, without expecting changes, can cause turmoil.
We don’t want to accidentally understock, then have costly minute changes, or worse lose our customers. We also don’t want to over stock and mess up the positive cash flow. Where’s the happy medium of inventory management?
Marketing analysis is, once again, conducted here. Constant research of your customers is what will more easily help you adjust to your marketing needs. Using those numbers from the data, you can estimate your inventory moving forward monthly (or however often you replenish your stock).
Even if you don’t sell goods, your services need asset management. Do your vehicles need maintenance? Or perhaps it’s time to upgrade the computers in the office.
Growing Competition
Management can be perfect, and cash flow is steady with a good supply. Our business is growing exponentially, and with that, we are entering new markets. Which means new competitors, and targeting new customers that put you on their radar. Dealing with competition comes with the fundamental territory of being a business owner, but have you ever seen competition from the perspective of long-term focus?
A long-term plan means keeping existing customers while acquiring new ones; regardless of what the competition is doing
Yes, it’s important to keep one eye on them, but don’t forget to keep the other eye on your own services. Experimenting too much with new trends can drive away existing customers, and still not bring in new ones.
Stick to what works, and adjust it for the long term. Follow large corporations on how they market. Such as Starbucks experimenting with new drinks as seasonal and then making them permanent items if it’s popular enough.
