Are you busy?
Possibly too busy to set aside time and address areas that could improve your small business?
Since you’ve been in business, there are likely several areas (that are in dire need improvement) which have been overlooked in recent times. Over the last few years you may have found it possible to get away with a few loose ends and haphazard processes, but not anymore.
It’s time to get serious, tighten up your systems and secure your future. If you’re ready to make small changes that will improve your results today, here are ten essential tips to help you get started:
1. Have a plan
Position your business for the months and year ahead. Decide on your strategy, set your goals and work on your tactics. Put these together in a one or two-page business plan.
2. Forecast your cash flow
Maintain a cash flow forecast so you can use it as an early warning system. The sooner you get an indication that your cash is tightening the more time you will have up your sleeve to take action.
3. Collect your debts more quickly
On average how long does it take you to collect accounts receivable (money owed to your business)? Aim to reduce this period by at least 10 days – if your annual revenue is $1 million you could save yourself $3,000.
4. Reintroduce credit checks
Have you got a bit lazy about running credit checks? Reintroduce them.
5. Monitor your customers debtor history
Are any of your customers starting to take more credit than usual? Keep a close eye on them. They could be feeling the squeeze so be careful about extending too much credit.