Financial decisions can make or break a business, supporting success or burying a company in bills. Poor planning, lack of capital, and bad management are at the top of the list of reasons businesses fail.
Fortunately, your business success can be bolstered by sound financial strategies and excellent planning. Here at Business Success Consulting Group, we provide expert business planning and management consultation to support and engender business growth.
Ten Financial Business Strategies
Many businesses have a great idea or product, but fail to invest appropriately in marketing, quality production, or customer service. The below financial strategies work to support sound spending habits, appropriate accounting, and more.
1. Don’t spend more than you make.
This commonplace piece of financial advice is consistently ignored by businesses who take out big loans, use high-interest credit cards, and generally operate on a knife’s edge. Instead of continually juggling bills, payroll, and more create a firm policy that your business only spends what it makes.
2. Invest in marketing strategies that work.
It can be easy to overspend marketing dollars on every kind of campaign known to man. Instead of this, find strategies that worked in the past and reinforce them.
3. Utilize free or low-cost resources like press, newsletter, and cloud services.
Resources like press releases, cloud-based backups, e-newsletter services, and more all cost little to nothing while providing value to your business. If you know of a specific service for your industry that will improve your company, be sure to use it.
4. Set aside money for new projects, building updates, and more.
You likely know of any significant expenses that are coming up. Perhaps your business growth demands a new building, or you need to stock up for the holidays. If you know of expenses that will be coming, be sure to set monies aside to cover them in advance.
5. Use actual sales numbers to plan for future expansion.
Sales projections are exciting and can make anything seem possible. However, actual sales numbers that have brought in real revenue are the only numbers that will support future expansion.
6. Automate as much as possible.
Automating your accounting can benefit both you and the customer. Automation services like Square offer risk-free payment plans to clients and they give your accountants a full picture of your business finances in a snap.
7. Support new product releases with actual income.
A new product is there to make you money. Try to support your product releases with preorders and other income sources as much as possible.
8. Anticipate upcoming expenses and start saving for them in advance.
Your general company expenses are likely around the same amount every month. You have payroll, equipment updates, suppliers, automation services, marketing, the electric company, and more to pay. These essential bills are necessary for your business’ successful function, so be sure to save to cover these standard expenses before they need to be paid.
9. Balance your product production and purchasing decisions with current and past sales numbers.
We are heading into the holidays, so balancing product production/purchasing can be a challenge. Set up the expected inventory in advance while also creating avenues for production rushes. This way, you don’t have to hold too much product in-house, but can get more rapidly if needed.
10. Offer the production incentives that you can afford.
Incentivizing production is a great way to motivate employees. However, sometimes it’s a challenge to do so. Be sure to offer only those incentives you can afford, even if they don’t seem like much. Any incentive is more motivating than no incentive at all.
At Business Success Consulting Group, we offer guidance to growing companies. Contact us today for financial consulting, leadership coaching, and more.