Spring is a great time of year to clean out the old and prepare for the new. This not only works well for the home and garden, but for your business too! Here are 5 tips to get you started:
- Let the Cash Shine In: Look for innovative ways to get cash in-hand faster and to have access to funds when growth comes calling. For periodic access to immediate cash, consider invoice factoring financing where you sell your accounts’ receivable or invoices at a discount in order to get the cash in-hand sooner rather than later. Great way to increase cash without increasing your debt or accumulating more loan payments. For projects or longer terms items like developing a new product line, accessing a small business loan may also be a good solution. In some cases, new invoices may not be generated right away so a more patient money such a longer term loan or equity may be a sound alternative.
- Trimming Inventory: Inventory is stuff, stuff takes up space, and space costs money. Spring is a good time to consider selling off inventory that’s no longer turning over profitably. Any potential loss in the process needs to be weighed against the carrying costs, particularly if you can replace the old with new items that will sell.
- Pruning Expenses: Revisit everything that you’re spending money on to look for ways to work smarter, more efficiently and more profitably. If this takes too much time, the first thing you want to fix is your expense management system. Other areas include evaluating energy, communication and outsourced services costs. If you’ve been with a payroll provider for a long time, for example, reexamine what they’re charging you over the competition. Spending controls equal profit controls.
- Customer Weeding: Take a fresh look at your customer base. Who pays on time? Who’s been with you a long time? Who hasn’t bought in a while? Who represents routine problems? The more you can understand who is buying what, when, how much and why, the more you can proactively drive increased sales and profits going forward.
- Staff Sprucing: Your team can be one of your most powerful – and expensive – assets in business. Look at who is doing well and be sure to let them know. This includes not only routine praise, but also other forms of rewards including financial and benefits. If someone is not performing well, nip it in the bud sooner rather than later. One bad apple can spoil the bunch!
For service-type businesses that do not deal with inventory issues, another great area to take a fresh look is how well you’re spending your time. Collectively, by looking at these and other ways to freshen up your business, you will be sure to reap many rewards.