Table of Contents
Making your business grow is not an easy task, then very simple but very important issues are addressed to achieve it, many times the question is in the details.
It is always very important that the customer be served quickly, whether in a business selling products, services, etc. It is not enough that what is sold is of quality and that the attention be friendly, since the consumer likes to have the product quickly, does not like to wait and does not like to ask but rather to approach support. If there is no speed in your business, surely in another business there will be and insurance will take away customers.
Create simple processes
First, it is very important to mention that creating processes refers to all kinds of processes, sales, purchases, marketing, administrative or any other type and it is also important to know that being simple must necessarily be efficient. By making your simple processes errors are less likely for your employees or employees, but it is also easier for you as a business owner to monitor the processes and identify any anomalies and see how they can be improved.
Take care of the seasonality of boxes
The term seasonality of boxes refers to the cash inflows and outflows your business has, but here it is risky to have extra money and less money, you must have the right and necessary money to fulfil your obligations because if you have less money it will not be enough to pay and you will be a creditor or creditor of default interest for example, but if you have extra money it would be an opportunity that you are letting go of growing your business since it would be better to invest that surplus of money to generate more.
Make strategies and not just plans
All businesses have one or more plans, which are, in a nutshell, what you want to achieve within the company, but a strategy very few businesses have it and it is through the strategy where diagrams how to achieve your goals. You can be very clear about what you want but not knowing how to achieve it will be very difficult for you to achieve your business goals.
Take care of your Deadlines
It is very important to know the term of your accounts receivable, which are your Credit sales, it is good that you take them out in the long term since the longer the time, the more interest you are going to charge your customers.
In the case of your accounts payable, which are your credit purchases, it is necessary that you take them out in the short term because the shorter the time, the less interest you are going to pay.
If you have money to pay for your purchases on credit, it is only good that you make prepayment if you are going to get benefits because if not, that money can be used better to generate more profits.
Transfer to cost and never to expense
First, it is essential that you know the difference between cost and expense; The cost is a disbursement that you make for company activities, it is directly reflected in the product or service, which is recovered with the income and the expense is a disbursement that you make for activities that do not go to production, for example, the rent of your premises, these expenses are not recovered financially, they may even translate into losses. So, knowing the above it is important that the financing costs that you can get to translate to your sales so that they are part of the cost and so you recover it and do not go to the expense, and this is called Financing Strategy.
Analyze if you want more income or more assets
The reality is that a successful business is not the one with more income but the one that generates more assets, but be careful because a fixed asset It does not always generate utility but a current asset does, we talk about inventories, accounts receivable and customers, among others, these types of assets will generate many profits.
Check if you should sell with a fixed rate or a variable rate
In order for you to sell on credit in addition to taking care of your deadlines, you have to know if you are going to apply a fixed rate or a variable rate to charge your customers. To know it you have to see the trend of the variable rate and if it is downwards, the fixed rate suits you but if the trend goes up, then you should sell at a variable rate.
Take care of merchandise risk
The risk of merchandise consists in verifying if cyclicity can affect your sales and take care of your stock. By cyclicity I mean being sure that you are selling in the right season, for example, if you sell clothes sell it according to the time or season of the year; and for taking care of the stock, in the case of product sales businesses, you should always have enough, and it may be that a little more for unexpected sales, but it will never be good to go through a lot in the amount of your stock because They will always generate an expense, such as the rent of the warehouse, the cost of electricity, cleaning, etc.
Be up to date on the legal issue
Every business has rights but also obligations in its operation and operation. It is important to have all your documentation to the letter, licenses, permits and everything your business needs; verify the legislation of the place where you operate and, finally, verify your ability to settle your debts in the short, medium and long term.
By creating and having your own business, you have other obligations towards the business itself, towards your person and towards many other people that depend on you doing things well and getting better. Always analyze what is going well in your company and what is not, so that you can objectively grow your business.