Running a profitable small business among a sea of competitors and larger companies is no mean feat and a myriad of problems lurk along the way.
Here, we address some common roadblocks to success, showing how you can take definitive action to overcome them.
Cash flow worries
Money problems tend to top the list of small business woes, with risks including delayed client payments, unexpected outgoings and urgent outstanding bills. A business cash advance provides a simple way of raising finance and, as it’s based on monthly credit and debit card revenue, funds tend to be released to small businesses in as little as 72 hours.
There are also tried and tested money management tools that can help manage cash flow, create budgets, calculate VAT and automate bill payments. Using online invoices is also a good way to charge clients and generate payments.
Find profitable customers
Start by researching your customer base and identifying the characteristics of the best ones – those with highest volume of sales and repeat custom. Integrate analysis of any costs associated with particular customers so you can clearly see their worth to you.
After that, focus your attention on attracting new customers, making sure you communicate your unique selling point that sets you apart from your competitors. To understand what your clients want, ask for feedback from your best clients and ask them which social media platforms they use so that you can continue to engage with them directly.
A dedicated workforce is vital for a small business’s survival and that’s why it’s important to understand exactly what your staff want in order to boost their engagement and harness productivity. Ensuring employees are happy and motivated means communicating clearly and being approachable. A good company will foster an atmosphere where staff feel that they can easily talk to management. It’s important for business owners to conduct regular appraisals and provide useful feedback that will assist in personal development.
Too many overheads
Excessive overheads have caused many good small businesses to fail. Resolving this issue means providing products and services that are tailored to suit your existing customers and potential new ones. By working out what your customers need, the most efficient way is to analyse transactions, you can scale back until you’re providing the necessities that will make your business tick.
It’s important to keep ahead of the curve when it comes to the latest developments in your sector. During your working week, make time to analyse competitors and do wider reading, whether it’s key industry websites of blogs or looking at social media trends. Make it your mission to schedule time to attend conferences, exhibitions and trade shows and research these events thoroughly so you know how to make contact with your target clients.
Quick Capital provides business cash advances to businesses taking card payments through their merchant account, providing an alternative to difficult to secure bank loans. To find out more, visit www.quickcapital.co.uk or call 0800 3777 402.