3 Quick Ways to Improve Your Financial Performance Today
Smart changes to give your business a boost.
Even when a business is doing well, there’s nearly always room for improvement. This blog lists three easy ways to get back in touch with your finances, giving you the ability to make more money or have a better cash flow.
If any of this daunts you, then get in touch with us, we can make sure you’re on the right financial track by doing a quick review.
1. Evaluate your expenses.
Go through your last 12 (or a minimum of six) month’s expenses, categorise what you consider to be essential, unnecessary and anything in between to review case-by-case.
A really good way to do this is to ask yourself ‘would my business move forwards without this expense?’. If the answer is YES, then it’s time to check if you need it, or if you can pull it out for the time being.
If the expense isn’t crucial, but it is making your life easier / saving you time, then perhaps the investment is worthwhile.
It’s good to have as much information in front of you as possible, if you’re paying annually for services, apps and products then you need to know what kind of return they’re giving you. Do they still make financial sense? Are there newer versions that work better?
If you use suppliers, are you still getting the best deal, often if you’ve been with the same company for a while there will be an opportunity to negotiate a new contract.
The same evaluation should be taken on fixed services that you need, e.g. insurances you need, could you switch and save money?
Finally, also consider setting up payment plans for larger expenses to mitigate the costs throughout the year rather than one big hit.
2. Offer better payment methods.
If your business deals directly with customers (B2C), then you could be missing a trick by limiting the options by which people can you pay you.
For the minimal effort in setting up additional payment methods you could reap benefits. Every consumer has a preferred payment method, so don’t put barriers to sale up by not having all the options available, it could lead customers to look, and buy elsewhere.
Businesses that have broadened their accepted payment methods have mostly experienced an increase in sales and customer satisfaction.
3. Change your marketing strategy.
If you have a marketing budget, you should have evaluated its function in step one, your expenses. Understanding what works for your business, and more importantly, what doesn’t work is essential.
If you’re paying for a strategy that isn’t benefiting you, then reassess. What works for one business won’t necessarily work for yours. If this is something that isn’t in your skill set then we’d recommend getting in a specialist company to do the hard work for you.
Social media management isn’t difficult, but it takes up a large chunk of time every day. Can you cope with bringing this in-house? Is there someone in your business that could do the day to day management. Content creation is key, again if writing isn’t your thing then get someone in to do this for you, you can then do the posting and curating.
See what works for you, try building your customer base organically. Organic growth can be maintained whereas buying in lists can work for short-term success.
These are three easy steps to get your expenditure back on track and to keep your business profitable. If any of this sounds like a mystery then get in touch with us, it’s what we’re here for.
We offer different levels of assistance, from a free analysis of your business to full time Virtual FD positions. Understanding how you want your business to grow and putting you on the right path to get there.