We’ve all spent sleepless nights worrying about the financial performance of our business, and certain questions – usually about whether you’ll be able to pay rent and wages next month, or what you’re going to do without that important client – can be quite stressful. However, here are three ways to strengthen your company’s financial position.
1. Hire People
Bringing people on might sound counterintuitive to improving your financial position, but flexible workers, such as freelancers and contractors, allow you to scale your business when you need and focus your energies on activities that make you money.
Contractors and freelancers don’t lock you into any cumbersome contracts, so if it doesn’t work out then you aren’t stuck with processes and compliance to get rid of them. Instead, you’ll have a workforce to handle the administration and day-to-day running of the business while you get out there and grow, grow, grow!
2. Improve Customer Service
Digital platforms like social media give customers a louder voice and more control over how they wish to be treated. Accordingly, customer service is increasingly important to the success of a business. High-quality customer service can boost word-of-mouth advertising, dollars spent per customer and the frequency of customer interaction.
Some good ways to lift your customer services from good to great include letting your customers get to know you personally, always being available to tend to a customer’s needs, offering your knowledge for free and starting VIP or exclusive services for certain customers.
3. Benchmark Your Business (and Shave Costs)
Measuring your business’s performance against competitors gives you a more complete and valuable understanding of your company’s financial position and potential. You could, for example, find out that your competitors are spending far less with their suppliers or on staff, which could help you reduce costs and boost profits.
Successful benchmarking includes several steps, such as identifying competitors and trends in your market, outlining your objectives and comparing them to your marketing plan, and monitoring your results and adjusting your strategy as you go.
Improving the financial position of your business comes down to you: the business leader. So clear out any superfluous activity and focus on reinforcing your finances today.
This information is factual only and is not intended to to imply any recommendation about any financial products or constitute advice. You are responsible for consulting with your own professional tax advisors and financial advisors concerning specific tax or financial circumstances for your business. Intuit disclaims any responsibility for the accuracy or adequacy of any positions taken by you in your business finance. If you have questions regarding accounting issues specifically related to your industry or your business circumstances, you should consult with your own professional tax advisor, accountant, attorney, industry expert or professional association.