For the majority of businesses, their primary concern is growth and development. They want to do everything from increasing profit and extending the range of their goods and services to hiring new starters.
However, there are just as many businesses out there whose primary concern is simply staying afloat. Since the 2008 recession and amid Brexit uncertainty, times are hard for lots of businesses – especially young businesses approaching their first year.
This article is going to explain how business owners and startups can protect their business from immediate collapse, and how they can future-proof it, too.
Manage cash flow (and be meticulous) :
In everyday life, it’s easy for your finances to run away from you while you’re not looking. Unfortunately, it’s the same in business. Your money is your money, but as a business owner, you have a whole team of employees to think about. Most startups run into money problems, but the difference is how these startups face their money problems.
You need to confront any issues head-on. This means being absolutely meticulous about where the money is going, and where it’s coming from. All businesses need to maintain a balance between getting cash in the door, and covering their expenses – this is vital for startups.
Have a business plan in place :
All entrepreneurs and business owners need to have a clear business plan so that they understand their targets and where they want to be. If your business is struggling, you need to be realistic about your revenue targets and growth so that you can grow steadily.
Avoid high debt :
While fledgeling businesses often rely on the likes of credit cards and loans, this kind of debt can be a double-edged sword for businesses because they often end up paying back more than they can afford. You don’t want to be spending future cash flow on the repayment of debts because there’s a good chance you’ll be back at square one before long.
Be accurate with your projections :
Like being meticulous with cash flow, you need the same attention to detail when it comes to your financial projections. Accuracy like this helps you from overestimating your potential sources of income and underestimating any future outgoings. Being realistic is key here because many business owners have young, fledgeling businesses (especially when the business is close to the business owner’s heart).
Build good relationships with staff :
Your staff will reward you in productivity and loyalty if you build (and maintain) positive, healthy relationships with them. Let employees know that they’re valued, and this will motivate them. Of course, this is a more long-term tip, but it will set the tone for a fantastic business and workplace.
Take good care of your existing customers :
It’s important that you take care of your existing customers – they are your business’ greatest asset! Your customer service needs to be the best it can be, and you need the formula to ensure that happy customers return to your business when the time comes.
Ensure your accountants are on the ball :
Today’s modern accountants are much more than just ‘number people’. They often have business experience and can advise entrepreneurs on a range of topics from tax and financial planning to the growth of the business itself. Like Manchester-based accountants Alexander & Co., today’s accountants can balance your books while advising on business expansion.
Don’t sink, swim :
The choices you make as a young startup business are vital. Make the right ones, and you’ll have a bright, profitable future ahead of you. Make the wrong choices, and it can spell the beginning of the end. When you’re a startup, things are often that black and white. Starting a business is a treacherous thing to do!
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