Business Advice during Tough Times
For a small business owner or entrepreneur, starting a business during recession or growing your business during tough times can be the ultimate challenge. It has been proven that with agility, planning and the right resources applied to small businesses, those tough times were there to spur growth for these businesses. There are many strategies for survival and growth in business; however, there are also common denominators that are characteristics in small business success during tough times, so here are a few strategies to consider.
Cost management is a prime importance for business, which relies on credit, to grow and profit and more so in a small business enterprise, such that when tough times come, your well-planned and well-thought of budget management and implementation will be your most important tool factor to allow your business to survive during tough times and continue to grow. To be able to do so, an accurate system for profit and loss projections must be established, as well as forecasting these projections on both short and long term periods.
Practice Business Anticipation
Since there are many risk factors in maintaining a business, it is also important to anticipate any possible scenario that may affect your business, so that putting up an emergency fund can help you finance your decision to change some of your business applications or operations for your business to be able to survive. Having an emergency cash fund you can fall back on can make a huge difference in carrying out your business through hard times.
Always Check on the Cash Flow
Be sure to always check on your cash flow, as well as managing it properly, as this will help you know the situation of your business and will help survive through seasonal ups and downs. By following up regularly on your cash flow standing, you can have a better assessment if your business needs capital requirements or your one-time investment is enough.
One of the basic must-do in any business is to prepare and review the following monthly statements, which are: balance sheet, profit and loss statements, and cash flow statements. By keeping an accurate account of all the money entering and leaving your business, as well as consulting your budget and monthly statements in case of any big purchasing decisions, this shows that you have succeeded in managing your business at all times.
Improve Billing and Collections by Using Software Applications
To improve your bill and collections processes, try automating your accounts receivables (AR) process, using the appropriate accounting software, and by doing so, you get these great advantages: 1. E-invoicing offers AR departments the freedom to produce both paper and electronic invoice format in order to match every customer preference, 2. Moving from manual to automated invoicing not only increases AR departments efficiency, it can also reduce processing costs by 44%, 3. An e-invoicing solution allows companies to send out invoices as they are prepared in real time, giving customers the chance to immediately initiate their internal payment process and getting you paid faster, and 4. Automatic emails to customers reminding them of their payment owed helps speed up collection times, reduce calls, and improve customer relations.