Identifying Business Problems

business growth planning

Identifying business problems is a big part of how you handle the issue of your company not making as much money as it realistically could be. Being able to quickly identify problems within your business is even more important when your company is losing money.

In many instances, a problem with a business may not be readily apparent from the start. It isn’t uncommon for a problem to go unnoticed until it’s been around long enough to cause some damage.  At that point, you and your team could find yourselves scrambling to deal with the issue, so that you minimize the impact.

Even if you manage to catch it quickly, your revenue and market share could suffer just as easily as your reputation with your customers and clients.

So how do you go about Identifying Business Problems so that you can deal with them as early as possible?

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How to Enhance Business Performance

Enhance Business Performance

When you’re running your own business, one question you’re constantly asking yourself is how to enhance business performance?

If it isn’t, then it should be!  Starting your business and making a name for yourself in your given industry is a tough enough task and you should never rest on your laurels once your business is off the ground and earning money.

As with any kind of operation, there is always room for improvement. There is always something that you could be doing better, more efficiently, and in a way that you will win over more customers and bring in more revenue for your company.

Businesses like yours involve a lot of different moving parts that work together to make the entire venture run smoothly.  Things will only become more complicated as your company grows and expands with time. You need to learn how to enhance business performance while your company is still young. If you don’t, then the road ahead will be that much harder as time progresses.

Let’s take a look at many of the different things you can do to optimize your company’s performance and you’ll see just how involved the process of getting the most out of your company can be.

Sharpening Your Talent

Your company wouldn’t be anything without the talent that goes into selling your products and services.

Whether you have a team of employees, or your company is a single-person operation, the skills used to persuade potential customers to part with their hard-earned money requires that your talents always be in the best possible shape in order for you to have the competitive edge.

With that in mind, know that there are several things you can do in order to keep your skills current:

  • Follow industry-relevant news and developments like it’s your job because, in a way, it is!

In just about any industry, things can change at the drop of a hat. The latest and greatest can quickly become obsolete. The last thing you want to happen is having to play catch-up because you weren’t aware of a development that affected the whole industry.

  • Take continuing education because graduating from school doesn’t mean that you stop learning. In order to keep up and make sure that you’re using the latest bit of knowledge related to your company, you should look into enrolling in classes every now and then.
  • Learning from your mistakes is practically “how to enhance business performance 101.”  Everyone stumbles at some point in their lifetime, and it’s no different in business.  You want to be sure that any shortcomings you’ve faced in the past are looked at closely so that you know what went wrong and how to keep it from happening again.

It’s important to note that dooming yourself to repeat a mistake can ultimately lead to failure or, at the least, stunted growth as a company. Whenever you make a mistake, you should note it, regardless of how insignificant it might seem. You’ll be glad you did later.

Make Use of All Resources Available to You

Some entrepreneurs have already figured out how to enhance business performance by going beyond their immediate circle and outsourcing certain aspects of their business. There’s no reason you shouldn’t do the same.  Outsourcing means fewer resources used than would be the case if the task was taken on in-house and doing so can save you time and money.

In figuring out how to enhance business performance, many companies have turned to outsourcing services like:

  • Accounting
  • Information Technology (IT)
  • Marketing
  • Payroll

With important aspects like these being handled by other specialist companies outside of your own, you can easily focus on what makes your business work and how your customers can best benefit from what you offer. You won’t have to fumble around with things that require a certain level of expertise in order to execute effectively.

Build Your Alliances

In a way, this tip harkens back to the previous one about sharpening your skills.

Every entrepreneur wants to know how to enhance business performance, but few realize that one extremely effective way to do this is through networking, building alliances, and creating mutually-beneficial relationships with other entrepreneurs.

In the world of business, it pays to have as many allies, contacts, and partners as you can. You want to take every available opportunity to attend events, seminars, and conferences where you can meet people who will be able to help you in the development of your business.

Whether these people are potential clients, suppliers, business partners, or even industry veterans who can offer you some help and guidance, it pays to put yourself out there and see how others will be able to help you.  You never know who you might meet!

Giving It Your All

When running your business, you should never skip out on anything that could help your company move to the next level.   You want the product or service that you offer to have a strong reputation in your markets, but you can only do that with enhanced business performance and efficient management.

From making sure that the people working for you have the skills and equipment they need to do their jobs, to looking at your resources and planning ahead, your company’s day-to-day practices are just as important as your long-term plans.  When figuring out how to enhance business performance, you need to look at all possible avenues to be sure that you’re employing the best possible practices.

Remember, running a business successfully does not need to be complicated.  Keep it simple!

For more valuable articles to help you successfully manage the challenges of growing your business profitably, please search our blog at our website www.portalcfo.com.

How to Reduce Business Overhead: Tips for Cutting Costs Without Losing Customers

cost cutting tips for your business

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How to reduce business overhead is something that many entrepreneurs like you thinks about when it comes to running a company.

And with good reason.

How to reduce business overhead is a question that’s been on the minds on entrepreneurs like you since people first started running their own businesses. It also becomes something that more and more people ask when economic times are less than ideal.

With much of the world still recovering from a time of economic turmoil, it’s an especially important question for owners of small businesses.

How High Overhead Hurts You

High overhead means that you spend more on business upkeep than you do on development and growth. Profit margins might be razor thin in the cases of many smaller businesses, meaning that every dollar has to count towards something meaningful.

But what are you supposed to do?

Besides eating into your revenue, rising overhead can cause you to raise the costs of your products and services to keep up with the increase in operating expenses. It goes without saying that if you raise your costs then your customers may jump ship and go with what your competitors offer instead.

Rising costs go hand in hand with the expansion of your business; that much is inevitable. As your company grows over time, you’ll undoubtedly have to hire more employees in order to keep up with customer demand.

Beyond that you may need to do things like order supplies in greater quantities, open additional branches, increase marketing, and move offices in when you have more employees.

But it doesn’t have to be that way.

Four Things You Can Do to Cut Costs and Stay Ahead

There are several things that you can do to minimize the costs your company takes on and enjoy the benefits of the increased revenue as a result.

  1. First, you have to know what your operating costs are – When it comes to figuring out how to reduce business overhead, it’s important that you know exactly what you’re up against.Take a look at your current costs with the most up-to-date numbers that you can acquire. This will give you an accurate assessment about what you’re spending to keep things moving behind the scenes so that the needs of your customers are met.You can also go a step further and get the same information from previous years. Chances are that comparing the current information with past information will show a trend in costs rising over time.If the changes that you see are drastic, then you know immediately where you can begin making changes as far as how to reduce business overheads are concerned.
  2. You can negotiate with other companies – It doesn’t matter what kind of business you run, you likely have to use some kind of service to process payments. Likewise, you need a company that provides you with supplies.If you have strong business to business relationships with these other entities, then it could be to your advantage to try and lower your costs by negotiating terms with them.The competitive nature of these industries means that they might be willing to work with you so that you reach a cost effective solution and they retain you as a customer.
  3. You can outsource some services to specialists – One way to cut costs is to let professionals handle certain tasks that your company needs.In finding methods on how to reduce business overhead, some companies have turned to outsourcing important functions like bookkeeping and information technology maintenance and support.Companies that provide these services excel at them. By having them do it, you can save yourself time and money so that your own company can do what it does best.
  4. Evaluate your true need for an office space – One mistake that you can easily make is buying more of an office space than you truly need to run your company.Take a look at how much space is available to you versus how many employees your company has. There’s a chance that they could occupy a smaller space without much of a change in the way that your company operates.

Beyond that, another way that you could be reducing business costs is by promoting a work environment where employees can use a virtual office setup if they’re so inclined.When you want to figure out how to reduce business overheads, consider having an arrangement where employees can work from their own homes.This provision can promote productivity by allowing your employees to work in a place where they are most comfortable, when they are most comfortable doing so.When this happens, you not only benefit from better work output but you may cut utility costs and have a reduced need for furniture and equipment at your office

Cutting Costs Should Never Come at the Expense of Alienating Your Customers

In the end, the question of how to reduce business overheads can extend much further than what’s brought up in this post. The truth of the matter is that there are countless things that entrepreneurs like you can do in order to minimize operating expenses. Whatever you decided to do, however, it’s important to remember that you always have to weight the risks of cutting costs against the rewards for doing so.

When figuring out how to reduce business overheads, you should do what you can reasonably get away with. Your cost cutting measures should never negatively impact the way you serve your customers or your ability to meet their demands. Keep costs low and customer satisfaction high, and your company’s name could easily be on everyone’s lips before you know it.

Remember, running a business successfully does not need to be complicated.  Keep it simple!

For more interesting topics to help you successfully manage the challenges of growing your business profitably, please search our blog at our website www.portalcfo.com.

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How to Reduce Business Debt

how to reduce business debt for service business owners

Once you’ve got your business up and running profitably, you probably want to know all about how to reduce business debt, right?

Depending on the kind of debt that it is, it could be eating into your cash flow and keeping you from expanding the way that you want to. It makes perfect sense that you want to reduce your business debt as quickly as possible.  Keep in mind that in some cases, there is debt that is “good” for your business.  We will discuss “good” business debt in a future post.

In many cases debt is inevitable, especially during the earliest phases of a company’s development.

Fortunately, that debt doesn’t have be something that constantly hangs over your head and keeps your enterprise from being the best that it can be.

Let’s take a look at some of the different strategies that you can employ to reduce your company’s debt.  You’ll see how you can gain peace of mind through business debt reduction.

  • Work with your suppliers – In figuring out how to reduce business debt, one of the first places that you should look should be the suppliers from whom you buy raw materials

If you happen to be behind on supplier payments, you want to work out a payment plan with your suppliers that will help you to get current with them. Your company most likely depends on what your suppliers sell you, so you want to settle any outstanding debts with them first and foremost. Doing so will make sure that your relationship stays strong and that you continue receiving the items you need to provide your own goods and services.

  • Sell, sell, sell – In order to reduce debt, you need to increase revenue and profits That much is obvious. There are several ways to go about doing that; the most straightforward of which is to increase your sales volume and move more product and services than you have in the past.

Offer incentives to your customers to get them to buy more, as long as its viable for you to do so. As you manage to sell more products, you can use the additional profit to reduce your company’s debt.

  • Restructure – When many business owners try to figure out how to reduce business debt, one thing they often fail to consider is how much restructuring might help them reduce debt.

From selling surplus inventory and unused equipment, to cutting back on excess around the business, there are a several small, but significant things that you can do to get closer to your goal of reducing your company’s debt.

  • Reduce Your Operating Expenses – This could fall in line with restructuring, or be its own strategy entirely.

Think about the things that always cost your money around your business.

You have your utilities like electricity and water, as well as services like your internet connection. Furthermore, you have the office itself, which you most likely pay to rent. While it’s true that these things are the cost of business, it doesn’t mean that there aren’t ways to reduce them. If it’s realistic for you to do so, consider moving to a smaller office or switching service providers for more cost-effective solutions. The money that you save could be reallocated to reducing your debt.

You could consider alternative scheduling for your employees. If you encourage them to spend time working from home on their own schedules for part of the time, you can ease a transition to a different office.  Consequently, you may not need to purchase, power, support, and maintain as much equipment around your office.

  • Look over your taxes – Speak with your accountant, CFO, or any other financial expert that you employ and they can help you figure out if you can reduce your taxes.

One way that they might do this is by going over what you pay in taxes and making sure that you are counting all of your eligible deductions throughout the year. It pays to do this exercise often because tax laws are always changing and new tax breaks for businesses are always popping up. You want to make sure that your annual tax bill is always as low as it can be, according to the rules.

Keeping your debt under control is one of the most important things that you can do as a business owner,. Therefore, you want to make sure that you’re taking every step that you can to pay back creditors and keep outstanding debt balances from impacting your company’s bottom line.

Remember, running a business successfully does not need to be complicated.  Keep it simple!

For more valuable articles to help you successfully manage the challenges of growing your business profitably, please search our blog at our website www.portalcfo.com.


Manny Skivoflax LinkedIn