Running a company is a huge challenge, but the hard work sure pays off. Entrepreneurs get the opportunity to share their passion, be their own boss, and offer value to their community. When you run a business it’s crucially important to keep on top of your finances. If you’re looking to improve the financial health of your company there are many ways that you can do so.
- Focus on marketing
If you want to make bigger profits you’ve got to focus on your marketing campaigns. With better marketing strategies, you’ll increase leads and widen your customer base. Video marketing is a great way to boost conversions. You might choose to create traditional ads, or ‘behind the scenes videos. Some businesses like to create tutorials, or vlogs to discuss industry topics. Webinars are a fantastic way to engage your audience and build rapport. Other ideas to improve your marketing include:
- Create interesting and unique blog content to stand out from your customers.
- Use interactive content to draw in your audience.
- Try User Generated Content, to improve the authenticity of your campaigns.
- Use email marketing tools to keep in touch with your customers.
- Debt recovery
When you run a business it’s important to stay on top of your debts. You should recover any debts owed to you as soon as possible. Managing your debts can help you to avoid expensive litigation and improve the relationships between you and your debtors. Some businesses choose to hire a debt collection company, to recover and manage their debts. There are lots of benefits to working with a debt collection company, such as:
- Can save your business time.
- Helpful to follow the legal guidelines of debt collection.
- Solve disputes and queries.
- Improve the financial health of your business.
- Sell nonessential assets
Does your business have money tied up in assets that you don’t need? If so, it’s best to sell these assets. Before you sell, you should calculate the depreciation, and figure out appropriate pricing. Perhaps you have equipment or property that you do not use? You might have excess stock that you don’t need? Selling the assets you no longer need will help you to improve your financial position.
4 . Hire a financial advisor
Consider hiring a financial advisor, to help you improve your finances. A financial advisor can offer investment ideas, or help you to improve cash flow. They can provide a profit and loss analysis and support you with your taxes. A financial advisor can help you to visualize your finances, and create financial goals.
- Protect your business
Entrepreneurs need to protect their businesses in many different ways. Failing to protect your business could mean you end up losing money. Every year a large number of businesses fall victim to cyber-attacks. According to CNBC, ‘cyberattacks cost businesses an average of $200,000’. To protect your business from a cyber-attack, you should invest in cyber security training for your staff.
You’ll also need to protect the reputation of your business. A reputation management company can help you to monitor your mentions online, acquire positive reviews, and manage negative ones. Unless you look after your reputation, you could lose customers and lose money.
- Budgeting Software
To improve your financial position, it’s a good idea to use budgeting software. There are many different types of software available. Here are a few of the best options.
- PlanGuru: This software includes powerful analytics and forecasting tools. There are twenty forecasting methods, to help you visualize your finances. PlanGuru offers income statements, cash flow statements, and balance sheets.
- Float: With this award-winning budgeting tool, companies can monitor their cash flow, and perfect their budget. Float helps users to visualize their cash flow, Float sends alerts if there is a surplus or low cash flow. With the perfect budget, you’ll save your business money, and improve your profits.
- Look for investment options
To grow your profits, consider looking out for investment opportunities. Many opportunities are suitable for entrepreneurs. Start with a low-risk investment, for example, Treasury Bills. These are bought using an ETF or a mutual fund. A Certificate of deposit is also a great low-risk investment. Other options to consider include:
- Corporate Bond: A corporate bond is a debt security that’s provided by a company. The corporation generates the capital it requires, the investor receives interest payments.
- Preferred Stock: This option is a mix of a stock and a bond. The holder receives a guaranteed payment every quarter. According to Investopedia, preferred stocks are ‘shares of a company’s stock with dividends that are paid out to shareholders before common stock dividends are issued.’
- Reduce expenses
To boost the financial health of your company, you should look at reducing your expenses as much as possible. There are lots of ways that you can reduce your expenses, including:
- Take advantage of free software tools, to support your business operations.
- Work as a remote company, to save on utilities and rent.
- Keep your team small, and outsource if necessary.
- Purchase second-hand equipment to go green and save.
- Apply for support
There are lots of different organizations that offer grant opportunities for businesses. To begin your search, check out these options:
- Shuttered Venue Operators Grant: The Small Business Administration runs the SVOG grant program. The grant offers financial assistance to shuttered venues, specifically for businesses that have been negatively affected by COVID-19.
- FedEx: This grant program offers a grand prize of $50,000 and several smaller programs for the runners-up. To enter the program, businesses must have a max of 99 employees and have been running for 6 months minimum.
The Amber Grant: This grant is available for female entrepreneurs only, the first prize is $10,000. The grant program was created by WomensNet, a company that offers support for female entrepreneurs.
With the help of these nine steps, you’ll soon improve the financial position of your company. Keeping on top of your finances is the key to continued success.