6 Smart Ways to Prepare Your Business for Financial Uncertainty
Running a business can be a huge risk. There is no sure-fire way for you to guarantee success, and financial uncertainties are always lurking at every corner. Fortunately, there are steps you can take to fortify your business and prepare for any challenges that might come your way.
1. Maximise sales opportunities
Start by being vigilant about your surroundings and connections. Remember that you can get a lot of business from referrals made by your clients or by your industry contacts. Capitalizing on these prospects will allow you to significantly improve sales figures.
Also, make sure your team is always ready to step up to the plate when a new sales opportunity presents itself. Train them well and keep them motivated. Moreover, encourage them to offer alternatives if a prospect is unhappy about the options they presented. Remember that perseverance coupled with a killer sales pitch can always turn a “maybe” to a “yes”.
2. Review your current situation
Set aside time to review and analyse your company’s current situation. This will allow you to determine any loopholes and issues in your operations before they spin out of control. This will also help you adjust to changing consumer needs and set new goals for the continued growth of your business.
If you’re not sure how to go about a company review, our specialists here at Australian Debt Solvers are here to help. We have a team of company managers and financial advisors who can guide you through every step of the process. Together, we’ll help you develop the best action plan to make your business more profitable.
3. Keep an eye on your receivables
Monitor all of your unpaid invoices on a regular basis. Don’t wait for the deadline to approach before you contact a client. It’s better to send them gentle reminders a week or so before the due date.
If you have accounts that have been overdue for 60 days, it would be best to send them to professional debt collectors such as Slater Byrne. These experts can take the burden off your hands and make sure you get paid without straining your business relationships. You won’t even need to be out of pocket for this if you have the correct terms and conditions in place.
4. Secure your cash flow
Keep track of the money you have on hand and allocate it properly. You can do this with the help of a cash flow forecast. Start by tracking your monthly income and expenses. Also, take into account seasonal variations in your income and expenditures, if there are any.
You can then use this data to set realistic budgets for every aspect of your operations. Stick to these budgets as much as you can so you can avoid unnecessary debt and other financial problems in the future.
5. Monitor economic indicators
Take note of the economic shifts in your specific city. Certain areas within Australia can experience mini recessions that keep companies from getting paid on time. This can have a knock-on effect where invoices do not get paid on time from company to company. This will eventually lead to the administration of many businesses.
By consistently monitoring economic and business trends, you can avoid this vicious cycle and make well-informed decisions about how to position your company. This will also help you determine how to better use your resources to achieve your goals.
6. Plan for multiple outcomes
Things rarely turn out how you expect them to, especially in the business world. This is why it’s important that you’re prepared for anything. Always have a plan B, C, D, and so on—even if you are certain plan A will work. Remember that foresight allow you to respond effectively to any and all outcomes.
A good example of a useful plan B is to have a personal guarantee. If your business goes under, this allows you to chase the Director responsible and make sure debts are paid.
Proper preparation is the best way to overcome the uncertainty of business. The steps outlined here will not only help you do that, but also give you peace of mind as you continue to achieve your goals.
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