Small Business Financial Article
|Rich Best has spent 28 years in the financial services industry, as an advisor, a managing partner, directors of training and marketing, and now as a consultant to the industry. Rich has written extensively on a broad range of personal finance topics and is published on several top financial sites. Recent books include The American Family Survival Bible and Annuity Facts Revealed: What You MUST Know Before You Invest.|
Tips for Growing Your Business in 2018
Starting and running a business is of one of the most challenging endeavors a person can choose to undertake. However, successful business owners will tell you that the larger challenge is growing the business to the next level because there is a lot more that can go wrong. Each business has its own dynamics and must deal with its own set of variables, making it very difficult to apply a common formula for success. However, certain fundamental principles, when applied to most small businesses, can greatly increase the chances of success.
Have a Vision ad a Plan
When your business is ready for its growth stage, it’s important to be very strategic in your approach. Having a clear vision of where you see your company going is vital; however, without a well-conceived business plan a vision can turn into a pipe dream. A sound business plan articulates your vision, your objectives and the specific strategies for achieving them. Your plan becomes your rallying cry to get others on board, including your employees, investors and lenders. It is also the central benchmark against which your progress is measured.
Have Ready Sources of Capital
When a business enters its growth stage, the need for additional capital can often outpace profits, which is the point when must turn to other sources of capital. This is a critical juncture when, in order for the business to expand and meet growing demand, it needs capital it doesn’t have. The biggest mistake business owners make is to wait until it’s need to go look for it. Your business plan can help you line up sources of capital well before it’s needed.
You don’t have to wait to start a relationship with a business bank. Angel investors are always interested in learning about businesses before they have a need. Network with your business community and keep your business plan out there to open more opportunities for funding.
Hire the Right People
Your first important hire usually comes when it is time for you to delegate so you can focus on working on your business rather than working in your business. From there, every hire, especially in key positions, is critical to the growth of the business. A business owner bent on success must surround him or herself with people willing to roll up their sleeves and commit to the vision. Every employee in a small business should be a major contributor to the growth of the company.
Have Sound Cash Management
A primary reason why many businesses struggle to get to the next level is poor cash management. Steady and growing cash flow is vital to growth. It often comes down to having a process that effectively accelerates receivables while timing your payables. Keeping your cash flowing for business growth is a big reason to connect with a business bank that offers state-of-the-art cash management tools.
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