Credit limits are designed to prevent debt from escalating out of control. Put a credit limit on all customer accounts and then put an automatic ‘stop credit’ on any overdue accounts. It’s also sensible to train your staff in how to approach a customer who has reached their credit limit so that the account can be settled in an efficient and professional manner. You could also set up automatic reminders… Read more
An up-to-date business cash flow forecast can help you manage your business more efficiently. It’s an estimate of the amount of money you expect to flow in and out of your business. It includes all your projected income and expenses and usually covers the next year, though it can also cover a shorter period such as a week or month. Ideally you should develop at least three scenarios for your… Read more
Increasing sales might make more profit for your business but consider increasing profit margins, especially if there is limited opportunity to increase sales. Growing your business can be achieved by building profit rather than sales. Focus on larger margins Concentrate on the products or services you sell that have the biggest margins. By selling more of these, your business will gain more profit. Train your employees to be aware of… Read more
Pricing can make or break a business. Yet for many small business owners, setting the right price is more guesswork than strategy. Whether you’re undercharging, reacting to competitors, or failing to review prices regularly, common pricing mistakes can quietly erode your profits and stall your growth. Underpricing to win customers It’s tempting to keep prices low to attract new customers, but this approach often backfires. Underpricing not only squeezes your… Read more
Setting financial goals for your business may be one of your most important responsibilities as a leader and business owner. Your financial goals serve as far more than wishful projections, they form the backbone of your road map for success, internal and external. Financial goals are something that every single business should possess regardless of its market, model or size. Let’s explore how you can set and track financial goals… Read more
Starting a business without a plan is like setting sail without a compass. While you might eventually reach your destination, the journey will likely be longer and more challenging. A well-constructed business plan is essential for guiding your business towards success. Here’s why: It Clarifies Your Vision A business plan helps you articulate the vision for your enterprise. It forces you to think through every aspect of your business, including… Read more
From terrorism to fire, from extreme weather or earthquakes to cyber-attacks – how would your business cope if it was affected? Would your staff know what to do? Would you be able to keep trading? Having a contingency plan is not just a precaution; it’s a necessity. Small businesses need to be prepared for a range of scenarios. Without a solid contingency plan, your business could face significant setbacks or… Read more
As a business owner, you’re the architect of your business’s vision and culture. But in the hustle to develop products, chase sales, and keep the lights on, some of the foundation often gets lost in the mix. Core values—those guiding principles that shape your company’s identity—are more than just words on a wall or a statement in a handbook. These aren’t just buzzwords to sprinkle throughout your website – your… Read more
In the world of small businesses, positive cash flow is king. It’s the driving force that keeps your business engine running smoothly, covering all your liabilities. But what happens when outflow exceeds inflow? Cash flow problems ensue, threatening the survival and growth of your business. These cash flow problems can originate from a variety of sources including macroeconomic issues like recessions, natural disasters, and wars, as well as microeconomic issues… Read more
If you’re like many business owners, you may find yourself struggling to understand what your finances mean or how you can use your financial information to make decisions for your business. Often we get into business because we love a product or service we want to provide. It’s not as common that we love managing the financial aspects of our business. As a business owner, you have your best chances… Read more