Growth is essential for almost all businesses, especially now that companies have quickly adapted operations to suit a remote workforce, consumer preferences are shifting faster than ever, and business models are continuously evolving.
Businesses, of any size and form, need to embrace these changes in order to be competitive, remain relevant, and provide an excellent experience for customers – not to mention, keep their finances in check. Here’s how to manage your business better in 2021:
Establish your Goals
Think of what exactly you want your business to achieve, short-term and long-term. What do you want your business to achieve? Who will your customers be tomorrow, how about next year? What do you want to become as an organisation?
Keep the SMART principles (specific, measurable, achievable, realistic and timely) in mind when you establish your business or organisation’s goals. Goals help you measure your company’s success as well as keep your employees motivated, productive, and task-oriented.
When you firmly and clearly establish (and communicate) your business goals, your employees will know how and what they need to focus on. Set the priorities and let them know how they should achieve those priorities.
Automate Your Tasks
Automated operations will definitely benefit your company in many aspects. You’ll leverage a higher productivity rate, increased performance, and reduced operating costs. In 2020, 31% of businesses had fully automated at least one function. It also promotes consistency. Since every action is the same, all of your clients and customers will have the same level of service from you. Therefore, you can provide better customer service, resulting in improved customer satisfaction.
Create Data-driven Decisions
Data helps you understand what works for your business and what doesn’t. 26% of companies have already achieved a data-driven culture. Data is your asset. Data helps you understand consumers. With data, you will know who your customers are, what products they like, and how effective your marketing efforts are. You’re also able to create a cash flow forecast, so you are able to best track your expected cash movements over a period of time.
Is Your Marketing Contextual and Appropriate?
Take a hard look at your marketing strategy. You can’t always stay true to your old approach and get the same results. The customer environment and their attitudes have changed rapidly over the last year. How have customer preferences shifted in your industry, and how does your marketing connect with them?
Psychology suggests people typically need a strong reason to revert to their old habits or change their behaviour – give them one. Given costs are increasingly in focus, leverage social media and ‘free’ value-giving content such as insightful videos, blogs and entertainment.
Be More Flexible
Strengthen your adaptability. Your business will thrive in 2021 if you have the flexibility to adjust your approach and actions in response to changes in your environment. To survive in this ‘new normal’, always adapt to new working paradigms, approach fresh ways to satisfy your client’s needs and take advantage of new technology to improve your business operations.
You can leverage cloud-based platforms to improve operational efficiency, shift your communication to digital channels, and adopt new management strategies to foster collaboration even when everyone’s working remotely. If your business is agile enough to withstand changes, you will be best placed to succeed in the long run.
Update your Budget and Financials
A lot has changed over the last year, and it will almost surely have impacted your business’s financial plan. Many small businesses have lost significant income so you will need to make changes as you focus on your operations this year. It is an excellent opportunity to improve your efficiency, striving to do more with a lower cost base. Reassess your budget, continue to manage your expenses and limit new costs unless they drive a meaningful return or benefit to your returning customers.
It’s also worth having a sit down with your accountant and diving deep into your situation while assessing opportunities and risks for the year. Update your financials in line with the new year and monitor your liquidity and operating position regularly to make the best possible decisions during this ongoing period of transition.
Arrange your Financing
Get your finances in order and stay on top of your bookkeeping and tax obligations. Always prepare your cash flow forecast on time, set your 2021 financial goals, and make reasonable estimates for your revenue and expenses. Then look to monitor your actuals versus forecasts on a quarterly basis to make necessary adjustments. Tailor your financial reports to gain valuable optimal insights into your business’s finances. Business is a competitive world, so you need to grow, embrace new challenges, formulate new strategies, to thrive and grow.
Take advantage of flexible financing solutions, such as accounts receivable funding. Use your current accounts receivable ledger (unpaid invoices) as security to turn your outstanding invoices into cash within 24 hours, instead of 30 to 90+ days down the line. Transform your business without borrowing a cent, accounts receivable fundings is not a loan, it is a solution that simply advances your money upfront for invoices issues but are yet to be paid by your clients and in return there is a small fee. Think of it as giving an early settlement discount on an invoice to a client that is willing to pay you in 24 hours instead of 30-60+ days later.
Whatever your situation, TIM Finance is here to help you get the funds your business needs quickly, to keep your operations moving when you’re planning to scale your business or when you’re in a pinch. Get the cash you need and make TIM Finance your partner for business growth today.