Stay on Top of Market Trends and Changes
There are a variety of challenges growing businesses face.
As businesses continue to grow different problems as well as unexpected growth opportunities will come, and both will need very different solutions.
Being prepared and planning ahead is essential in the growth of your business.
Keep in mind the steps you take today will help you avoid future problems or missed growth opportunities.
While remembering what works today might not work a year from now.
Staying informed of your current market trends, planning ahead, welcoming change in cash-flow and financial management.
No matter what type of business you are in conditions change.
Not staying on top of the current trends you run the risk of making poor decisions that are out-dated and irrelevant, causing a hardship on your business that could have been avoided.
Researching your specific market isn’t something you do when you first open your business.
It's continuous, and you should never stop.
Know what your customers want.
Take the time to talk to them.
Look we know your busy but remember it’s your customers that are keeping you busy.
Consider updating your Information Technology infrastructure.
Having an updated IT system will help you analyze your customers spending habits easier and quicker.
Don’t fall behind in gathering the data.
The harsh reality is your competitor would like nothing better than to see your customer walk through their front door.
Have you noticed over the last few weeks what seemed to have been working for a long time no longer is?
Again, can’t stress this enough.
Market conditions change.
What worked a year ago might not work today.
Welcome the change.
Change can be good.
Talk to your suppliers.
See what trends are changing in the market, and where they see the market is heading.
Having planned ahead might mean it's your competitors' customers that are walking through your front door.
Managing the company's working capital is crucial to your business growth and success.
To much strain on your business cash flow is the most significant deterrent of growth and ultimately having your business fail.
What is working capital?
Simply put, working capital is the funds available to your business for day-to-day operations.
Without it, you can’t function.
To determine the amount of working capital use this simple equation.
Current assets - Current Liabilities = Working Capital.
To determine assets and liabilities turn to your balance sheet.
Your current assets include cash on hand, inventory, and accounts receivable.
Current liabilities include accounts payable, notes payable, accrued expenses and the current portion (due within the year) of long term debt.
Long term debt can be bank loans and lines of credit.
Overall working capital determines the health of your business.
It is perfectly normal and crucial for growth that businesses to look for outside capital.
Outside capital can come in many forms and be used for many different reasons.
All too often, I have seen business owners with successful business high personal credit wait until the last minute to obtain capital.
They apply when they desperately need the capital having already depleted their personal funds, and that has already negatively affected their personal credit.
That could have all been avoided by applying for a Business Line Of Credit.
With a business line of credit, the money is there for when you need it.
Whether emergency or growth.
Nothing to pay unless you use it.
An excellent safety net for any business.
A few reasons why successful businesses borrow money.
Start-up costs have to be paid.
You need an inventory, equipment, employees.
Without inventory and equipment, you can’t function.
Whether it’s just a simple computer, telephone and internet connection.
Reduce the risk to your personal funds and credit by borrowing.
Using personal funds for business purposes puts you and your family in considerable financial risk.
Don’t tie up your personal cash for business purposes.
You have many other alternatives.
Borrowing helps you increase working capital.
Working capital is the blood flow of your business.
It’s what makes the day -to- day operations happen.
Not borrowing and choking your cash flow can do irreparable damage and lead your business to failure.
Steady cash flow is crucial to having the cash on hand for emergencies or an unexpected growth opportunity.
Use the credit to make more than the cost of borrowing.
One reason many businesses continue to use credit is that they can make more profits with the capital that is borrowed, than its cost.
Using the credit whether it be from a business line of credit, term loan, SBA Loans, or invoice factoring allows you to invest more into your company.
From inventory, equipment, hiring additional employees, or sales borrowing can help your business create more profit.
Being able to spot opportunities in your market to seize the moment for growth.
As I said earlier, welcome changes.
Why not start with changing what we usually would ask when borrowing money.
Instead of “ How much will this cost?”
How much can I grow if I borrow this money?
You don't have to deal with banks anymore.
No longer are the days of just having to deal with your local bank to obtain working capital.
Deciding between an online lender vs. a traditional bank is a decision you need to make depending on what you are borrowing the capital for.
Few things to consider when making the decision.
Online lenders require minimal paperwork, and in most cases, you will receive the capital in less than 48 hours.
Interest rates tend to be lower with traditional banks but keep in mind most bank will require collateral while online lenders do not.
If the credit score is an issue.
Online lenders tend to be more forgiving of bad credit and will work with you to get you the capital despite the low credit score.
Whether your business is just getting started or it has been up and running, and you are ready to take that next step in growth, you need the working capital ready and available.
Don’t wait till its too late to borrow.
Your business depends on it.
SPEAK YOUR MIND
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