Do Your Business Finances Make Sense? – What It Takes To Get Off The Ground

| April 19, 2013
Business Finances

Business Finances

Deciding to start a business is a very noble cause, since this means that instead of fighting for the very few employment opportunities in the market, you create a few more opportunities. It is a very good experience knowing that you are the boss, and perhaps your schedule is much easier than when you were not, however, it is not always rosy and greener on the side of the business owners.

Statistics prove that close to half of all businesses that begin every year never get to see the end of the third year, and there are many reasons why this is the case. When a business fails, the owners have the most to lose, but when it gains, then they gain the most.

For one to make sure that his or her business does not fall in the category of failed businesses, he or she needs to employ certain tactics, which will help to push up the financing or the profits. More statistics prove that less than a third of businesses actually manage to increase their finances or their profits, with the others either remaining stagnant or making losses. For your business to be profitable, here are a few pointers:

  1. Change your focus

Most of the times, businesses are not focussed on finances or making profits as they ought to, and this is one of the leading causes of failures in business growth. Most businesses focus only on the day-to-day activities instead of focusing on the bigger picture, which is eventually making a profit. A wise person once said that it is foolish to keep doing the same thing repeatedly and expect different results, and that is very true in business. The focus of the business should be defined, and the end ought to dictate how to get there.

  1. Improvement in the operating procedures

One principle rule should apply here; ‘make more sales and reduce the expenses’. For a business to make any profit, then selling the product that it deals in is very important, however, it will not make sense to make more and spend even more. Therefore, in the process of making the money, the business ought to ensure that there are fewer expenses. This might mean increasing the product line, it might require putting up measures to enhance customer retention, offering discounts, and attracting more customers.

  1. Marketing and advertising

For a business to grow, it has to be visible to more people, and this is the vital role of the marketing department. Depending on the line of business you are in, there are marketing strategies that will work better than others will. You need to evaluate where your market niche is, and look for your clients there.

These days, the use of Search Engine Optimization strategies and Social Media Optimization are taking centre stage, because these take advantage of web surfers who are interested in the product as well as those who are not so interested. The basic point here is that the company is visible, and people can actually receive the services either online, or get started from your website.

  1. Employee motivation

A motivated employee is a very good ambassador. This does not mean sending people to represent the interest of your country in other regions of the world; it only means using your employees to spread the word about the work they are involved in, since they can also connect with a market that is beyond your reach.

However, for this to work, the employees need to be motivated, and several ways of achieving this include; sending them for trainings, encouraging them to develop in their careers, holding meetings  where you listen to them, and offering them rewards for the excellent work that they do.

Author Bio

Kelin McCullen is a blogger who focuses on business finance and proper management of the same. She suggests that if people and business make more money, they will be in a position to keep up with their taxes, and the IRS help will not threaten them in any way.

Do Your Business Finances Make Sense? – What It Takes To Get Off The Ground

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