Operating at a loss simply means you’re spending more money than you’re making. And while it’s not uncommon, especially for new businesses, it’s still not an ideal situation and one that shouldn’t be allowed to continue in the long term. Otherwise, eventually you’ll run out of cash reserves and be out of business. So the […]
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Document the positives in your business plan to persuade both yourself (the most important person) and stakeholders such as lenders, investors, suppliers and potential customers that your business idea is sound. 1. Your idea has a strong point of difference To survive in business, you need a compelling point of difference. Period. Something that clearly […]
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Advertising should be viewed as an investment that should generate a return, rather than a fixed cost. Many businesses spend money on the same kind of advertising each month without knowing what is working and what isn’t. Effective advertising builds profile, generates new business, and retains your existing customers. Poorly thought out advertising can create […]
If you’re in retail, there’s money to be made online and it’s important your new business finds its place in the online market. Survey your regular customers Many retail businesses are now offering online shopping features. Their keys to success involve measuring the market first to make sure their time, money and effort bring about […]
Running a successful business is a juggling act between cash coming in and cash going out. If you’ve built up a cash reserve, you’ll be better able to stay in business and handle short-term issues like falling sales. Build a cash buffer Businesses generally fail because they run out of cash. Cash in the bank […]
Taxes – there’s no avoiding them. But there are ways to reduce the amount you have to pay so that your business is more profitable. All it takes is some preparation, planning, and the advice of a good tax specialist. So one of the first things you need to do is talk to your accountant […]
Cash flow – the lifeblood of any business. The aim of any business owner is to have more cash coming in than is going out. You’re in business to make money, and one of the most effective ways of doing this is to examine your cash flow and look for ways to improve it. You’ll […]
Is it time for your business to invest in some new equipment? And if so, is it a smarter business decision and more cost-effective to hire or buy? Why you might need new equipment The right equipment can enhance your processes, productivity, capacity to innovate, and bottom line, but should you buy now or wait […]
If your customers owe you money, the faster you’re able to obtain it using effective collection tactics, the better. Ideally, you want to reduce the chance of bad debts and pressure on your business’s cash flow. It can be easy to neglect managing your debtors when you’re busy growing your business, but smart credit control […]
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An asset ratio compares your assets to another part of your business. So, you could be comparing assets to revenue, profit, the number of employees or their salaries – whichever you wanted to measure. For example, if your assets/salaries ratio increases, you may have staff over-ordering on equipment. It’s a great ratio to assess the […]
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Depreciation is basically a reduction in the value of an asset over time. What this means for your business is that if you buy a substantial asset like a computer or a car, you can claim a certain amount of the loss of value over time as a business expense. It’s also a method of […]
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Online distribution frees you geographically. Where you might have been selling your product or service locally, opening an online distribution channel means you can sell it on a global scale, which is an effective way to grow your business and boost your brand. Identify what you can sell online You’ll have an online presence with […]
Being on good terms with suppliers could translate into special deals or preferential treatment. Your suppliers may also give you greater leeway in the face of a cash shortage or when you need extra time to pay. Build the relationship An efficient payment policy is a vital part of building a strong, trust-based relationship with […]
Most small business owners start out with a good business idea but little concept of what it takes to manage and grow a business. But you can learn and improve your management skills as your business grows. While there isn’t a definitive list of skills, the ones listed below will help you build your initial […]
While your tools, skills and reputation allow you to operate, it’s your staff who can often influence your trade business’s progress. Hiring great workers is only half the solution. Once you hire them, you’ve got to retain them. Here’s how. 1. Know your people One of the simplest but most effective actions an employer can […]
As a small business owner, you’ll want to get positive returns on a limited marketing budget. It’s important to monitor the quantity and quality of advertising in order to be as effective as possible. Choose advertising you can monitor It’s impossible to measure the exact returns from investing in building your brand. A familiar saying […]
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1. Build credibility quickly Why should people buy from a new business? Your first challenge is to overcome their doubts by building trust and credibility quickly. Some tips: Promote your skills and experience, plus those of your staff and associates. Join your industry or professional organization and start building a profile. Commission a writer to […]
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Long-standing customers form the backbone of a strong, well-established business. Make it your mission to ensure that the vast majority of your current customers stay with your business for many years to come. Why it’s vital to keep existing customers Your current customers already have personal experiences of dealing with your business and using its […]
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Start-ups are at a disadvantage when it comes to their first sales forecast because, clearly, they don’t have any historical data to base it on. But there are still ways to create an accurate sales forecast, and it’s important to do so because it’ll help you work out if your business idea is financially viable. […]
The ideal promotion plan is one that results in clear steps you can put into action immediately. This means concentrating on just the practical, promotional aspects that will lead to results. The good news is that you can do it yourself. Identify your targets Identify the exact types of customers you want to sell to […]
