Three ProActive Key Actions to Grow Your Business
Here’s a checklist that will help grow a profitable business
1. Understand how finance affects your business - Assuming you are in business to make money, develop an understanding of finances that affect the business.
a. Cash Is King. Understand the difference between profits and cash. Profit is an accounting concept while cash pays the bills.
b. Rely on a cash flow spread sheet that identifies the timing of income and outflow. It can be used as an early warning system to highlight problems.
c. To keep close tabs on positive cash flow, pay close attention to an account receivable report that identifies how long invoices are outstanding . A receivable not paid for 90 days is a loan to your customer.
2. Use technology in innovative ways - Look at the way you do business and identify changes that could make a major impact on the way you operate.
3. Control expenses - Search for businesses that are using effective models and emulate their operations.
a. Seek out advice from your networking business groups.
b. Keep head count low - Hire only when you absolutely must. Consider interns, part timers or outsourcing.
Extra Credit - Mentally prepare yourself for success. As counter-intuitive as it seems, the possibility of success keeps some business owners awake at night. Create a plan that projects a successful business.
