Monthly Archive: January 2019

How to Organize To Expand Your Business?

 

Making a business grow and walking with one’s legs is a great dream and at the same time a great challenge for traders and entrepreneurs. Selling well, gaining market space and gaining new customers are positive indicators that encourage micro and small entrepreneurs to focus on expanding their business. An editorial over at ogawaweb.net

But what many of them do not know – or do not pay attention to – is that the growth of a company also depends on other factors, such as the organization of cash flow and the investment in employees and production processes. When done on time or in the wrong way, this step can be larger than the leg, bringing more problems than benefits.

In this post we have put together a series of tips and guidelines that will help you get organized to expand your business on time, in a healthy and sustainable way . Check out!

Is your company really ready to grow?

Is your company really ready to grow?

Before making any decisions, visualize all the aspects that involve expanding your business and ask yourself: Is my company really ready to grow?

To answer this question you need to have a minimum structure required. So, make an analysis around three main points:

Perennial

Perennial

Is your business in danger of disappearing over time? Take into consideration the sector in which you are inserted and the growth that it has been having in the market. If it is positive, your company will probably follow that flow.

But be careful not to confuse ascension with fadism. Therefore, it is best to complete one or more cycles that show that the business really is perennial. For example, if you opened a gelateria, the ideal is to consider the period of two or three seasons – from one summer to the next – to make sure that the business will be firm.

Loyal customers

Loyal customers

Surely you have heard that customer loyalty is much more difficult than winning new ones. And it’s true. A solid base of satisfied customers with your product, service or service says a lot about the robustness of your company. At this point, expanding your business, more than a will, can also be a necessity.

Remember that keeping your customer roster up to date can help you a lot up there when your business is already bigger.

Financial planning

Financial planning

To put the expansion of the business into practice it is necessary to have a very well structured financial planning . Organize your cash flow , analyze the risks, and evaluate current and future profits. This will help you identify what investment will be needed and how long you will have the return on it.

It’s time! What are the first steps?

It

Now that you know that your company is ready to grow healthily, you can begin to chart your way to expanding your business . But how to do this? The first step is to identify which expansion model best suits your needs. Some options are:

Franchises

Franchises

In the franchise system is the franchisee who assumes the risk of creating the venture. In return, he receives the training and work model that were developed by the matrix.

To get started, you need to have an analysis of your company’s legal status and well-planned strategic planning. In addition, to have a standardization of the quality of your product or service, it is very important to define your market position, value of your brand, factors that differentiate you from the main competitors and what your business model.

Branches

Branches

Because it requires more planning, dedication and a very efficient management, this expansion model represents a big step. Only the company’s high billing does not justify such a decision. In addition to producing more, it is necessary to generate enough capital to sustain the new unit. In some cases, for example, it is necessary to recalculate the value of the final product to ensure return on investment in less time.

One tip: Keep all finances separate. That way you can measure the results and prevent the affiliate from interfering with the financial health of the business as a whole.

New sales channels

New sales channels

For those who are not yet ready to open new units, expanding sales channels is also a way to expand their business. For example, if you have a beach fashion store, an interesting option could be to open an e-commerce or get commercial representatives to take your product to other places.

Do not forget that from the moment you add a new business model to your company, all financial and operational management should be re-evaluated.

Increase in product variety

Increase in product variety

A simpler way to make your business grow is to complement the options available to your customers and extend the products offered. Thus, the old customers start to invest more and there is the possibility of attracting new ones. Another advantage is that the lags caused by periods with less movement tend to decrease.

How to organize for a fast and healthy growth of your company?

How to organize for a fast and healthy growth of your company?

Once you decide what your company’s expansion model will look like, it’s time to get organized to put the plan into practice.

It is common that, at that time, the entrepreneur sees the need to increase his income so that his projects can get off the paper. Increased number of employees, improvement of production processes, purchase of more raw material and investment in a new space are common expenses during the expansion.

Taking into account that strategy and planning are already well aligned at this stage, contracting credit in the right way can be a good solution. Thus, it will be possible to invest in the growth of your business without compromising your financial health.

 

 

5 Tips for Controlling Your Business Costs

 

One of the factors that most influence the growth of a company is controlling its costs. In order for it to grow effectively, it is necessary to carry out very fine cost control, from the small to the multinationals.

It is not difficult to find deals that close due to the lack of control of your finances. Not only to remain open, financial control is also extremely important to increase market competitiveness.

Want to know how to let everything go right in your company? Keep reading this text, as we separate great tips for you to leave everything in financial days and be calm!

The importance of cost control in your business

Cost control is closely linked to a strategic vision where clear and achievable goals can be drawn. This vision will be the basis and the north of business operations and are also directly linked to business management activities.

This is a process that contributes to the achievement of defined goals and not only to assessing their feasibility. After all, it is the financial control that makes it possible to assess costs well and allows strategic actions to be taken in order to keep the company in the predetermined direction.
Already know how to make a sales pipeline for your company? ( Click here to read more about )

This scenario is even more important for small and medium-sized businesses because capital is limited and credit options are not many. Therefore, it is necessary to pay close attention to financial resources! If you are a small entrepreneur , this text is also full of tips for you!

It is not easy, however, we can make an analogy to personal organization: until a system that really works is established, it takes time and patience to develop, test and adjust the system to every eventuality that may arise. It’s not much different for businesses.

 

 

What is good cost management?

The financial management of a company, when poorly executed, means that the company does not have the expected results and also has enough difficulty in maintaining the goals. But what is needed to do this management efficiently?

First, we would say even more important – are the analyzes of the financial processes, which must be detailed in spreadsheets and / or other ways of disposing this data in a readable way for all. Also, keeping an eye on the investment opportunities that can appear can make all the difference to your business.

In the end, a well-prepared spending spreadsheet results in less out-of-control spending, all because you can access the right information at the right time, allowing for strategic decision making. Never underestimate a routine survey, it may contain information that is very relevant to the financial health of your business.

Also learn how to negotiate terms and debts with suppliers by clicking here

 

How to do cost control

Now that you’ve been able to understand what financial control is and how important it is to your business, we can delve a little deeper into how to achieve this feat.

Well, without further ado we go to the tips on how to make and maintain effective control:

The accounts of the company and of the partners can not be confused

The accounts of the company and of the partners can not be confused

This is the basic rule and it has certainly been reiterated countless times, however, it is never too much to reiterate something so primordial to maintain fine control of the company’s accounts. If the member makes any personal purchase, it can not, under any circumstances, be held from the company’s account or be posted to its accounts.
If the above scenario happens, it will not be possible to evaluate the results obtained and the measures implemented will not correspond with reality.

Implement cash flow and track working capital

Implement cash flow and track working capital

Put simply, the cash flow and the control of entry and exit of company funds. All billing, as well as all expenses are properly accounted for.
When we talk about working capital , we are talking about the resources available to be used in short-term procedures. This is a figure obtained by the difference between Current Assets and Current Liabilities. Its positive value means that the company is able to operationalize its actions with internal resources.

An eye on the expenses

 

Observing the expenses under critical eyes is very important to identify all those expenses that are unnecessary for the company. In addition, you need to look at the expenses that are required, however, they are very high and need to be optimized.
To achieve this goal, one can reduce expenses with stationery until implementing policies to outsource some services, cutting various expenses!

The other eye in stock

The other eye in stock

Inventory is another cost management item that can easily drain large part of a company’s resources. In this sense, it is clear the need to have a good inventory control . This is an item that can compromise working capital , something you certainly do not want.
Calculating the ideal level of inventory is necessary in order to control spending and keep your business healthy.

Beware of choosing your suppliers

 

Do not fall in love with the one who will only offer you the lowest price. Always look for those who have a diversity of products and services. This gives you a strategic position when it comes to negotiating.
These are some tips to keep track of your company’s costs, there are many more facets to this subject.

Click here and learn the key financial metrics to measure a company’s success.

 

So, did you like the tips of this article? We at BizCapital are here to help business owners who want to see their business take off! To check other tips on the world of entrepreneurship, follow our social networks: Facebook , LinkedIn and Instagram .