5 Ways To Make Your Small Business Better

28 November 2015
by redflagalert -- last modified 28 November 2015

Whatever stage of development your small business is in, there will always be scope for improvement and ways in which you can help to make your company more productive, profitable and sustainable.

Here are five ways in which you might be able to pursue those improvements and build proactively for the future.

1 - Understand your essential attributes

If you are looking for ways to potentially improve how your small business works then it might be natural to focus most attention on your weaknesses but this isn’t necessarily where the greatest gains can be found. In many cases, it can be that by understanding more about what you’re already doing well you’ll be able guide your company towards being a better and more profitable business. In short, doing more of whatever it is that you do best can be a valuable rule of thumb to follow.

2 - Plan ahead with a sharper focus

The day to day challenges of running a small business tend to come thick and fast but it can be crucial for leaders in these situations to take a step back and take a look at the bigger picture. Specifically from a financial management point of view, knowing what lies ahead and planning for it with the sharpest possible focus can be a real advantage and one worth working hard to attain.

3 - Use extra cash to improve your competitiveness

If your progress as a small business has been such that you’ve been able to create a degree of financial flexibility then it’s important not to take this position for granted. In fact, you should aim to think clearly and carefully about how you might make investments that improve your company’s prospects for the future.

Acquiring strategically-relevant assets, for example, can be very important in establishing firmer foundations for your business as you look to compete with rivals and strengthen your operating position across the board.

4 - Keep a close eye on cash flow

For any small business, cash flow problems can emerge quickly and serve to derail what might otherwise have seemed to be serene progress and even resoundingly positive developments. So it is crucial for any small business boss to keep a sharp eye on their company’s cash flow situation and to ensure that acute cash flow crises can be avoided altogether or else coped with confidently.

5 - Be aware of the funding options available

Company directors and small business leaders can generally serve their operations best if they are planning for the worst while aiming for the best possible outcomes. Deciding what the best outcomes might be for your company will depend on your particular situation and the dynamics you’re facing but the worst case scenario will typically involve running low or running out of money. A familiarity with the funding solutions available under different circumstances can therefore help a small business to be adaptable and robust when and if financial difficulties or growth opportunities arise without much warning.

Mark Halstead is from Red Flag Alert, part of the Begbies Traynor Group, and is now in his 10^th year with the business. He's worked at companies across the financial services industry and is a fellow of the Institute of Sales and Marketing.

Red Flag Alert is a business database containing over 6 million records on businesses in the UK, from sole traders through to limited and quoted companies.

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