How To Grow Your Business: Lesson One
Keeping the cash rolling in ...
POSTED BY JONATHAN VOWLES ON 25/09/2018 @ 9:00AM
If you run a business, then part of what you have to do is to grow it. Let's face it, you have to grow your business, don't you? Quickly or slowly, your customers will always drift away ...
If you want to grow your business, remember to keep the cash rolling in!
copyright: alphaspirit / 123rf
Lets put some meat on the bones of how you grow your business. Practical and relevant advice about how you can succeed. In this case, the first point is a reality check.
You probably know the following phrase, ''Turnover is vanity, profit is sanity and cash is king''. What does this mean for your business?
Now, this is a simple, but critical point. Before you go for growth, you have to make sure that your foundations are strong enough and you are making a profit and have a slick way of getting the cash.
Otherwise, all your marketing is just so much wasted money and effort. Spend the time getting everything working correctly (or at least better), before you go for marketing glory.
If you are a startup business or haven't got a business yet, then this still applies to you! Make sure that you design and plan how you are going to keep the cash rolling in regularly.
The point of any business is that it turns stuff into cash; cash in your pocket! So, far all pretty straightforward, but apply this to yourself:
How much are you charging, and is it enough to make a profit?
Whether you have a complicated product mix or not, go back and check your costings, so you know what everything you do costs and what you need to charge. Understand the profitability, the margins that you make on everything you do. Make sure that you are charging enough and always making a profit.
How slick are you at getting the cash and banking it?
If you don't have a highly efficient way of collecting money from your customers, then change it so that it is slick and effective. For example, do you take card payments or direct debits, if not would that help?
Do a test, check yourself out!
If you'd like to find out more about how to grow your business then do give me a call on 01234 752 566 or click here to ping me an email and let's see how I can help you.
Until next time ...
If you're looking for a new accountant to help grow your business, do visit www.jvca.co.uk and learn how JVCA can help you!
I've been an accountant in and for business since 1987 and have a wide experience of consultancy, audit, accounts, taxation and wealth planning work from individuals and small businesses to multinational corporations and charities.
My eclectic interests in growing and developing business span a number of areas … and can be summarised as strategic business advice and tax saving advice.
I have worked with the Chamber of Commerce to deliver courses for people about starting up in business and have lectured about tax for a major accountancy practice and for Milton Keynes College.
I relax by reading fiction and by getting away from the office in a campervan.