This guest blog has been provided by Dean Burgess of Excitepreneur.net. Thank you Dean for your insight.
Even the largest businesses started off small. Consider that Google began in a garage office with three people in 1998. Airbnb grew from the desperation of two young guys who couldn’t afford loft rent and decided to rent out their air mattresses. That could be your story, too! First, though, we need to do some planning.
A growth management strategy ensures that your business plan is successful and scalable. Consider this critical advice from entrepreneur and digital marketing expert Justin T. Farrell.
Key Aspects of a Growth Management Strategy
Consider a growth management strategy as the foundation of a home. It takes time and effort to create one, but it lays a firm foundation for future growth and success. There are a few key aspects to consider, such as the following.
Hire the right team to save time, foster business growth, reduce turnover costs and increase morale.
Keep finances organized for tax purposes as well as monitoring the budget to increase profit.
Prioritize digital marketing to build brand recognition and foster healthy competition.
Take advantage of technology to streamline processes, improve efficiency and enhance customer experience.
Improve product development by constantly assessing the data and identifying room for improvement (visit online job platforms to find data analytics companies who can complete this complex work).
Focus on customer satisfaction to increase revenue and enhance customer satisfaction.
Customer relationship management (CRM) platforms are useful in setting a business up for success. These platforms combine the priorities of technology and customer satisfaction to improve revenue. They also streamline internal communication, optimize marketing and gain valuable insights.
What Role Does Finance Play?
Monitoring finances, in particular, is critical for consistent business growth. Maximizing profits and decreasing expenses is determined by several financial practices, such as the following.
Organization is Key
As a business expands, it can become more difficult to manage finances. Focusing on the profitability of a business from the very beginning introduces a mindset that prioritizes revenue growth.
Adopt an expandable organizational structure that will make it easy to keep finances organized as the business grows, without letting anything fall through the cracks. Track your income, audit your expenses, and digitize hard copies. Each of these small efforts can have a big impact.
Studies show that 82% of small businesses fail because of cash flow mismanagement. Cash flow is essential to keep a business running, and it’s important to manage cash carefully.
Some tips to improve cash flow include collecting receivables and tightening credit requirements. It’s also a good idea to focus on increasing sales and keeping tabs on expenses.
If you have yet to integrate payment processing through your website, do it. With so many people making purchases online, this is a must-have convenience that can keep your cash flow strong. Implement payment processing with the help of a reputable third party for bank account authentication. This enables you to instantly retrieve account information to facilitate payments securely.
It’s easy to get carried away with expenses, especially when the business starts to grow. Tracking expenses is a fundamental part of managing cash flow and avoiding debt.
Tracking expenses is an effective way of controlling costs and identifying areas to cut back. Routine tracking also prepares businesses for tax returns and helps them to make better decisions for the future of the business. This is also critical information you’ll need for your annual report to remain in good standing with the state and to maintain compliance.
It’s beneficial to streamline and automate business operations wherever possible. Doing so can save time and reduce the chance of human error. Investing in a reliable invoicing system is an effective way of keeping up with accounts receivable.
Invoicing software offers many benefits for a small business, especially one that is growing. For example, invoices can be created faster, it’s possible to send and import multiple invoices at once, and you can process your invoices in batches instead of one by one.
Monitoring and managing finances are essential for successful business growth and should be prioritized. Fortunately, there are a lot of great resources for keeping you on track.