To thrive as a small business, you need to make money. If you do not turn a profit, then your days as a going concern may be numbered.
Try as you might, your business is not able to turn a profit. Indeed, without a money-making angle, your enterprise will falter and it may eventually shut down. Elusive profits do not have to define your small business. Therefore, we will examine some of the problems that may currently beleaguer your firm.
You Are Risk Adverse
At some point you need to take risks if you are to move ahead. However, being risk adverse won’t help your company move forward. Likely, you are aware of a certain track you can pursue or a product you can offer for sale that could elevate your position.
Without taking a risk, you won’t set your business apart from others, giving potential customers little reason to transact with you. Therefore, it is time to evaluate certain risk taking moves you can make, enumerate the cost, then make a bold move. Likewise, to embrace the status quo will only ensure your company’s gradual demise.
Cash Flow is Just a Concept
Money comes in and money goes out. Undoubtedly, you have some record keeping mechanism in place that tracks when you will pay your customers and when clients should settle their invoices.
Yet, if your cash flow is lagging, then you need to take steps to improve the process. Here, you may need to press tardy clients to pay up; in other cases you might offer discounts for early payments. Simultaneously, you can handle both sides of the accounting spectrum to get your cash flow streaming smoothly.
Your Proficiency Remains Unknown
Who are you to your customers? You have a certain talent that others may admire, but not everyone knows what you can do. Certainly, there is a reason why you are in business for yourself, but your personal marketing may be lacking.
Here, you will need to prove your expertise through a variety of methods. For instance, you might share your knowledge on a blog post or by means of a newsletter. Further, you could teach a class or proffer personal instruction to a mentor. Your business’ valuation may hinge entirely on how well you promote yourself.
Employees Feel Depreciated
Chances are you do not work by yourself. In that case you have employees who comprise your staff. These people may feel appreciated or they may feel undervalued. If the latter, then you have a morale problem on your hands.
It is your team that can make or break your business. Specifically, if your staff is competent, engaged, enthusiastic and trained, then they can make up for a legion of mistakes or problems elsewhere in your firm. However, if they are small players or disengaged, then no amount of work on your part will enable your business to thrive until this problem is rectified.
Small Business Smarts
You can achieve profitability by addressing each of these points swiftly and with confidence. Until then, abandon all hope of turning your business around with a day of financial reckoning looming on the horizon.
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