Every business has some growing pains but for many businesses, this can lead to some serious problems with cash flow. Though your ideas are good and your creativity is on point, any business can find themselves in serious trouble without a proper financial plan. In fact, many a brilliant business idea has gone down in flames due to financial overstretching.
So, what happens when you are on the brink of collapse but still determined to make your business work?
Get Some Help
There is absolutely no shame in asking for help. You’ve got so far on your own but clearly, a little more guidance is needed if you want to make your business work in the long term. Not every entrepreneur can possibly be a financial genius so bringing in a company like AntonyBatty is a good way to get professional help and learn on the job too.
If you are not already outsourcing to an accountant, you should definitely do so as soon as possible. Accountants aren’t just good for working out salaries and pensions, they are also brilliant at finding ways to increase your profits and find new sources of funding. Plus, there is nothing like an accountancy company for putting you in touch with a wide range of other businesses who could be of some use to you. This is a networking advantage as much as anything else!
Having a network of businesses and a few friends in your industry is ideal for getting some advice. Though you might think that businesses would be secret about what has brought them success, the opposite is often true. People love to tell you all about what they have done to get to where they are – asking is the best compliment you can give them.
Reassess Your Priorities
The perils of business growth are never clearer than when you are pushing further and further and stretching every penny as far as it can go, you have 2 options: first, keep spending and spending in the hope that some profit will turn up or, second, reassess your priorities so that you focus on profit immediate generation.
Great ideas take time to develop and put into practice. Though your great idea might be the perfect profit-making system, if you aren’t getting any income while you develop it then you aren’t going to get to the end result you desire. Sometimes, prioritizing the less innovative idea to make profit you can later put into a more interesting idea is the best way to go.
You should also think about the money you are spending on things like marketing. There are 101 ways to market a business or product but ensuring that you are putting your money into only the most successful methods is vital. Social media is usually a cost-effective method for marketing a business as are Google Ads. This is because both methods use pay-per-click so you will only ever pay for the ads that draw attention.
Focusing on the marketing methods that bring in the most customers is only logical and from there, you should priorities refining the conversion funnel. Making is as quick and simple as possible for your website visitors to convert into customers is the best way to drive profit. No matter what else you do, the conversion funnel must be constantly within your sight.
Rein It In
One of the greatest characteristics of the most successful entrepreneurs is having a vision and a strategy for getting there. However, this can also be the downfall of entrepreneurs – especially if you are impatient! Taking on too much all at once is the easiest way to ensure that your business doesn’t make it past the first year – you need to rein it in!
As with prioritizing, you should keep your main goals in sight at all times: making a profit, refining your conversion funnel and using innovative ideas to lure customers in. Though you might have a 10-year plan in mind, remember that you must also be flexible and allow for changes.
Another brilliant characteristic to have is creativity but again, this can also be the downfall of a great entrepreneur. Pick and choose your projects according to what will bring in the money now. It might be tempting to do everything at once but the reality is that you only have so much time and money to hand. You need to let some things go for others to succeed.
Though you might be looking at disaster right now, there is always a way to make the most of your situation. You just need to have the confidence to make a change.