Success is more difficult to achieve without management controls. So, how about learning how to make a company grow financially with more planning and less improvisation or you can use the help of professionals like Great lakes advisory for instance? Check out the step-by-step guide to the financial success of your business
- Define Feasibility And The Best Business Model
You may have a good idea to undertake, but is it viable in the region you will be operating? Your business needs to be compatible, or it’s doomed to fail. A feasibility study that considers the specific location where it will be installed is a key part.
For those starting from scratch or needing to reformulate their proposal, defining or changing the business model helps. Before starting to do calculations and think about structure and machinery, assess the applicability of your idea. After the business starts, it becomes more difficult (although not impossible) to overcome the difficulties generated by the higher cost of logistics, for example, being far from the capital.
- Know Your Customer
The two previous steps address the embryonic stage of the entrepreneurial project (although, as seen, the business model can be changed at other times). But if you’re already on the job and don’t know how to grow a business financially, you could be failing the customer.
After all, what are your target audience and consumption habits? We’re not talking about statistics, as Carla reminds us: “It’s not about how many are men and how many are women. The objective is to discover and understand what they like to buy and their needs, understanding what they are looking for when they come to you.
- Differentiate Yourself And Become Competitive
You believe that you already know your customer very well, but he continues to prefer the internet or, eventually, heading to the state capital. Why does he do this? If you answered “price,” you already have the first answer, although not definitive and not always applicable.
Understand that your business will not grow financially if you do not know how to attract the consumer. To do this, offer something he can’t find in virtual stores or big cities. A more homemade and personalized service can be a good start, recalls Carla. How about promotions, special events, and interaction activities? “The idea is to offer more services and facilities, that is, to think about what I deliver as a complement to the client.”
Especially in smaller towns, building a close relationship with the community often helps a lot. When the entrepreneur is creative and delivers reasonable solutions with some differential, the consumer may not even question the price a little higher than those of competitors if that’s the case. After all, it has a more human consumption experience than the internet and saves traveling to large cities.
- Promote Your Product Or Service
Now, the internet is no longer a problem and has become a solution. And no matter the type of business: you can always benefit from using online tools for marketing or sales, for example. “Social networks are a very direct communication channel with the customer. It’s easier to ask a question on WhatsApp than to pick up the phone and call”.
But the consultant such as great lakes advisory for instance warns: do not use the space without criteria, publishing in any way, or even mixing your account with the companies. “This work needs to be done technically, transforming the channel into yet another means of communication for the business.”
If you don’t know, you can outsource the demand. If there are no resources, it is never too late to learn at least the basics. Free online courses are there for that.
- Control Cash Flow
You already follow the guide, all the previous steps are mastered, but you still don’t see your company grow financially. Can you tell where the money from the business is going and where it is coming from? Look: cash flow is not a luxury for those living in the big city. Your organization ensures the survival of the business. But how to do this? Record all income and expenses, no matter the size. It can start with a spreadsheet, which is the basic model of financial control.
When carrying out this diagnosis, you can identify billing problems, a very high cost with a particular supplier, and even that loan you took out last month was unnecessary – and the worst: interest will compromise part of the revenue for some time to come.