27 Jan

Steps To Secure A Soaring Business

Posted in Synergy Suggestions on 27.01.12 by John Meloche

In yesterday’s blog, we took a look at Ryan Starr article published by The Toronto Star that listed a number of rules to keep small businesses afloat. This list is especially important for entrepreneurs who find that they are constantly working within the constraints of a tight budget.

By following these rules, we believe that business owners may not only run their businesses in cost-effective ways, but that they will also be able to more easily turn profits. After all, making a profit is the name of the game right? We ended up at rule number four yesterday, so let’s pick up where we left off, shall we?

5. Get help. Sometimes, all you need is a helping hand to take your business to the next level. Don’t be too proud to ask for assistance. For example, some very business-savvy entrepreneurs are quite simply horrible at accounting. Hiring a bookkeeper in such a case will pay off for you in the long run.

6. Borrow early! Don’t go to a bank looking to secure a loan if you are in desperate need of money. The bottom line is that they will see you as too high a risk to allow you to borrow. The best time to secure additional working capital is when your business is doing well. Consider alternative methods of funding such as merchant cash advances as well.

7. Inspect inventory. Being efficient is the key here. You don’t want to tie up all of your money in too much inventory, but you certainly don’t want to be without an adequate amount either. Writes Starr, “These days, just-in-time shipping can help ensure you don’t have excess stock just sitting there.”

8. Reduce overhead. Go through your expenses and see what you can do to cut costs. Is everything on your list necessary? Contact your service providers to see if you can score better deals for your phone and internet services. See if you can negotiate a better deal on rent. Perhaps, putting the money you save into improving the look of your business will help generate greater profits.

Mark Cahsens is the owner of a toy and sporting goods manufacturer in Oakville, Ontario. Following the above mentioned rules has helped Cahsens to hold on to sufficient funding to help run his business. He hasn’t had to go to the bank for money, and he finds that both his supplier and customer relationships have improved as well.

Said Cahsens: “I encourage my suppliers to extend terms (up to 120 days in some cases), so, effectively, I’m receiving money from my customers before I have to pay my suppliers.” It is our hope that you too may be able to follow these business rules and enjoy the success that your business deserves. Good luck!

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