Manage Your Cash
Cash flow problems may naturally occur from time to time, based off of consumer needs, the economic situation, and sometimes even other factors like political. But if your cash flow problems are constantly in a bad way you may need to rethink your business.
Good cash planning will help you ensure that this isn’t a huge problem. Gross margins may be low for a number of reasons including; discounted prices or out-of-control direct costs. Your overhead may also be too high, with factors such as; rent and payroll.
Develop a Data-Based Culture
A ‘gut feeling’ in business can only get you so far. Tracking data and using this data to make decisions will really help your business strategically. It’s better to make an informed decision rather than always using your gut.
Strategy for Recruiting and Retaining
You need to make sure you have a strong strategy for recruiting and retaining employees. The interview process is incredibly important process as you want to find out as such about the person as you can. Ask them a multitude of questions about the business, and themselves such as their ambitions etc.
Talk to Your Customers
Good communication with customers is important because it opens up what they need and want. This can be done personally in store, online through surveys or opinion polls, or through phone calls. You don’t want to constantly bombard your customers with questions but it’s important to get the right information based on the company’s needs, e.g. better reputation, higher sales.
Know Your Competitors
As much as it’s important to know your customers, it’s just as important to know your competitors – that way you know what you’re up against. You should know the strengths and weaknesses of all major competitors and use this information to improve your company, and potentially show off your competitors’ weaknesses more. The more you know about them the better so it’s always best to research the products they sell; the prices they sell them for; where they are located etc.
Money isn’t Everything
Although money is essential to the running of a business, you need to have other deeper factors to your business as well. Finding and maintaining a clear mission such as sales goals and profit goals will motivate both you and employees to work harder and be more loyal to the company.
It’s not just about motivating yourself to do better for the company either. If you want people to really buy into your idea and your brand it’s always good to have a mission outside of your business goals, such as helping save the environment or only using fair trade products. When a company isn’t just in it for the money people have a lot more respect, trust, and loyalty to a brand.