Noteworthy Tips SME Owners Need To Remember
30 Jun 2016 in Finance
Making your mark in the business world is no easy feat.
Apart from finding ways to be a step ahead, you also need to take a lot of important factors into account before jumping into the proverbial entrepreneurial waters.
In most cases, the success or failure of any business entails knowing what steps to take and finding ways to get ahead.
Fortunately, when it comes to maintaining your competitive edge and defending your market position, there’s no shortage of strategies you can employ.
The following tips should help you get ahead of the pack:
Get professional help when needed. When it comes to business, it is best to never leave any stone unturned. The same principle applies even when applying for a business loan.
For instance, while getting the help of an SME loan consultant would seem like an expense you can do without, nothing can be farther from the truth.
In fact, help from an SME loan consultant will not only ensure fast and quick processing, it will also help guarantee you’ll get the best deal available for you.
Know your competition. When it comes to business, the importance of knowing who your competitors are cannot be overstated.
When you know your competitors, you will also discover what their unique selling point or UPS is. From there, you’d be able to come up with ways you can differentiate what you have to offer from and give your business the much needed edge.
Ensure adequate cash flow. No doubt about it, cash flow is the lifeblood of any business and is essential if you want to be a step ahead.
In line with this, you need to find ways to ensure there is steady cash flow at all times.
Consider getting a loan if you need to. Make sure you also get the services of a trusted SME loan consultant especially if you need money and you need it fast.
Keep the costs low. Cash flow would prove futile if it’s not positive cash flow. In other words, you have to find ways to bring in more cash.
For starters, you need to ensure both your expenses and costs are kept low.
It will also work to your advantage if you pay vendors up front as it will give you the leverage to negotiate better prices.
Focus on marketing and sales. In any business, you will never get anywhere until a sale is made. That being said, you need to find effective ways to generate leads.
Not only that, you also need to ensure those leads convert into sales. In addition, you also need to find means to make repeat sales.
While the task might seem herculean, it’s actually easy if you know how. Start by finding or creating a sales and marketing funnel system that you can use, measure, and test. Make sure that it’s also something everyone in the company can use.
Find ways to increase profits exponentially. In business, there are five drivers that can impact your profits.
These five drivers are leads, conversion rate, average dollar sale, average number of transactions, and profit margin.
If you are able to master the five drivers while keeping the costs low, you’ll have a higher chance of increasing your profit and getting ahead.
Test and measure everything. You can’t change a program or strategy and there is no way for you to gauge its effectiveness if you do not test, measure, and track your results.
Once you are able to do all three, you will no longer be throwing money on campaigns or strategies that won’t bring people through the door.