10 Proven Ways To Improve Your Business Today!
It doesn’t matter whether it is springtime or autumn where you live – the best thing that you can do to improve your business right now is a bit of spring cleaning.
By this of course, I mean reinvigorate some of the housekeeping issues that you may have overlooked in recent times. Over the last few years you may have found it possible to get away with a few loose ends and haphazard processes, but not any more. The tough economic times have changed all of that. It’s time to get serious about tightening up your systems and securing your future. Here are my Top 10 Tips to improve your results:
1. Have a plan
Position your business for the year ahead. Decide on your strategy, set your goals and work on your tactics. Put these together in a one or two page business plan. Uncertain times call for certain actions.
2. Forecast your cash flows
Maintain a cash flow forecast so you can use it as an early warning system. The sooner you get an indication that your cash is tightening the more time you will have up your sleeve to take action.
3. Collect your debtors more quickly
On average how long do your debtors take to pay you? Aim to reduce this by at least 10 days – if your annual revenue is $1 million you could save yourself $3,000
4. Reintroduce credit checks
Have you got a bit lazy about running credit checks? Reintroduce them.
5. Monitor your customers debtor history
Are any of your customers starting to take more credit than usual? Keep a close eye on them. They could be feeling the squeeze so be careful about extending too much credit.
6. Evaluate your customers
Do you know who your best and worse customers are? How much profit are you making from each customer? If you don’t know, now is the right time to set up systems to track this and….
7. Cull your bottom customers
Harsh as it may sound, concentrate on your best customers. Lavish them with attention. If you have unprofitable customers, cull them. You have no room for passengers.
8. Trim your product range
If you are carrying a wide range of stock trim it. Do this by calculating which of you stock lines are your worst performers; sell those lines quickly to release some cash. Reduce your overall investment in stock.
9. Look at your processes
Mistakes are costly so take a look at your processes. What can you tighten up or do differently to lower the chance of errors?
10. Have a budget
Having a budget isn’t about cutting costs, it is about managing costs. So budget your expenditure for the year and track your actual costs closely. If you see costs starting to climb take steps to reduce your non essential expenditure.
So in the face of rising interest rates and a global economic downturn the best thing that you can do to improve your business is to tighten up your belt and the system in your operation.
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