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5 Ways to Improve Your Company’s Finances
by Dan Radak Wed, 02/08/2017 - 11:42
If your business spends more than it earns, you’re facing an imminent financial crisis. No one starts business planning to lose money, which means that either something went horribly wrong or you made a significant oversight in the preparation stage. Luckily, there’s no such thing as irreversibly bad financial state and with this in mind, here are five ideas which may help you improve your company’s finances.
1. Increasing Price
Naturally, the first step towards improving your fiscal status lies in making your business earn more. There are several ways to do so, but by far the most obvious one is raising your prices. Naturally, overdoing this may cause a massive market resistance, but if you keep it within a reasonable margin of 5 to 10 percent, this might just go unnoticed. The best thing about this course of action is that it significantly reduces your break-even point, which makes any future deficit much less likely to happen.
2. Reducing Costs of Doing Business
A lot of businesses start ambitious and hire services they don’t need or engage in activities they cannot financially endure. Needless to say, you may soon find yourself in situation where you need to terminate some of them. Unfortunately, determining which ones are expendable or unnecessary may be a difficult issue. The best guideline here is to look for those services that have little to no relation to the overall customer experience. These are the ones that won’t be missed as much.
3. Forensic Accounting Services
Earlier on, we mentioned that your poor financial state may be a result of a pricey mistake you keep repeating over and over again. Well, in that case, you may need a bit of help from people skilled in forensic accounting. This will provide you with your company’s solvency assessment as well as full financial modeling and analysis. If there is any fraud or misappropriation in question, this is probably the most reliable way to flush it out in the open. Finally, if you’re in a bad business relationship with another company, this could also get you an estimation of damage of breaching or breaking your contract.
4. Focus on Lead Conversion
A lot of businesses focus too much on vanity metrics and misinterpret them as success. Just because people like your product on your Facebook page or retweet your offer doesn’t mean any of them are actually buying from you. What you need to do is find a way to turn those people into paying customers. First you need to start with the increase in lead generation, since the bigger the audience, the greater conversion pool you will have. Next, you need to find a way to make your product speak to them on a personal level and convince them that it is exactly what they need. Sure, it sounds simpler than it actually is, but succeeding in the business world was never supposed to be easy in the first place.
5. Better Customer Support
Finally, you need to think about the way to create return business and according to some, the easiest method is having a strong customer support. There is nothing that will improve the image of your company in the eyes of your customers more than the idea of you actually caring about their problems. Because of this, having a better customer support most commonly means providing your clients with an overall better customer experience.
While all of these ideas are subtle, they are deeply rooted in the very structure of your business and introducing them would mean revolutionizing your company’s organization. Alas, this is something that takes time, resources, but above all a lot of vigor and enthusiasm. For those who possess the latter two, there is no such thing as a point of no return.
About the author
Dan Radak is a web hosting security professional with ten years of experience. He is a coauthor on several websites and regular contributor to BizzMark Blog. Currently, he is working with a number of companies in the field of online security, closely collaborating with a couple of e-commerce companies.