Tips for Making Your Business Profitable

Portal CFO Make Your Business More Profitable

Building a successful business is more of a marathon rather than a sprint. Succeeding in business today requires planning and organizational skills. Adapting to changes arising in the target market also plays a significant role in business success. Generating profits, as many entrepreneurs find out, requires investing more time and money in your business. Here are four tips on how you can make your business more profitable.

Organize Your Business

Completing various tasks and achieving your business goals requires good organization. Creating a to-do list daily for your business helps in completing pending tasks before assigning your staff new duties. Proper organization can also enhance the hiring process for employers seeking the right job applicants. Hiring the right candidates saves on resources, which increases profits.

Keep Detailed Records

Detailed records are necessary for every successful business. Keeping accurate recordsHow to Manage Small Business Finances will give you insight into the financial position of your enterprise and the challenges it is facing. Finding a solution to problems facing your business is easier when you keep correct records.

Be Creative

Improving your business policies makes you stand out from the competition. Your business should adapt to changes in tastes and preferences of target customers. Implementing strategies that set your business apart from competitors will be profitable in the long run.

Prepare to Make Sacrifices

Hard work helps a business to scale. Putting more resources such as time and money in your business expands your operations, which in turn, will increase your profits.

Provide Exceptional Services

Offering excellent customer service plays a significant role in business success. You will enjoy repeat business from customers who feel satisfied with your services, and as an entrepreneur, you should have an understanding of your target customers to make money. When you meet or exceed the expectations of your clients, you will win their loyalty, which will improve the profitability of your business operations.

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When Do You Need a CFO? 4 Important Questions Every Entrepreneur Should Ask

The question of when do you need a CFO is one that will eventually pop up as your company grows, so it helps to know just what might lead to your need for a chief financial officer.

Since the role of CFO is not always clearly understood by new entrepreneurs, many businesses find themselves without one until the need for someone to fill that spot suddenly arises.

So, throughout this post we will look in depth at the question of “when do you need a CFO,” outline what such a person does for your company, and how it can help you on the path to success.

Read moreWhen Do You Need a CFO? 4 Important Questions Every Entrepreneur Should Ask

Identifying Business Processes: How to Keep Aware of Key Business Activities

Identifying business processes is one of the many skills that you need to possess as a business owner. You’re probably wondering how you should approach the practice of identifying those processes and, perhaps more importantly, why you should do it.

If these are questions that you have as an entrepreneur, then keep reading this page.

We’ll go over the process and importance of knowing just what your business processes are, so that you can drive your company towards the kind of prominence that you envision for it.

Read moreIdentifying Business Processes: How to Keep Aware of Key Business Activities

Cash Flow Management Strategies: How to Make Your Money Work for You

Ask any successful business leader and he or she will tell you that no company, great or small, can survive without the right cash flow management strategies.

It’s important to remember that, as a business, you don’t just have an obligation to your customers; you have obligations to your employees and creditors as well.

That’s why it’s important to keep track of the money that moves through your business.

Cash is king when it comes to managing the immediate needs of your business and when it comes to planning for the long term, so it needs to be adequately managed down to the last cent.

So let’s take a look at some cash flow management strategies that you can apply to your business. You’ll see just why this simple concept has such big implications.

Read moreCash Flow Management Strategies: How to Make Your Money Work for You

Break Even Analysis Formula: Figuring Out Your Costs and Revenue

Do you know all about the break even analysis formula and how it helps your business stay on track?

If not, then it’s something that you may want to learn, because it will aid you in your financial decision-making for your company. This calculation is one of many tools that you can use to help your business remain successful from a financial perspective.

Let’s take a look at what goes into a break even analysis formula, so that you can get a clear understanding idea of how it impacts your business operations.

Read moreBreak Even Analysis Formula: Figuring Out Your Costs and Revenue

How to Obtain Funding for a Business

How to obtain funding for your service business

How to obtain funding for a business is something that is on the mind of every entrepreneur who has ever had an idea for starting their own enterprise, and with good reason. In order to get anywhere, regardless of the stage that the company is in, you need to be able to successfully manage your finances down to the last penny.

For the average startup, this applies to being able to get the enterprise up and off the ground. Established businesses need effective money management for growth and expansion. In a long-standing business, managing finances has everything to do with holding on to market share and keeping competitors at bay.

Proper business funding is essential to everything from day-to-day operations on up, but just what is the answer to the question of how to obtain funding for a business?

Well, let’s take a look at some of your options:

You could receive funding for your company through equity financing

If equity financing is the route that you decide to take in order to finance your company, then you should know the basics behind this practice.

  • Equity financing is the same as getting investors on board with supporting your company. You agree to allow these investors to purchase part of your company. They give you money for operations and they, in return, receive a percentage of the profit that comes in
  • This approach for securing funding means that you can come across a large amount of money on which you will not have to pay interest but, at the same time, you lose some control in your enterprise.

Investors who own a large enough part of your company may have some input into how things are run, so you want to think about who you approach if you decide that this is the answer to how to obtain funding for a business.

If handing over part of your company to an investor doesn’t sound like an appealing option, then….

You could look at taking out private loans

When business owners are trying to figure out how to obtain funding, this is often the most common approach.

This comes with its own unique characteristics, of course:

  • By borrowing money from a bank or finance company, you can obtain the kind of capital you need to get going without having to give up a controlling interest in for company.
  • Your company’s profits belong to your company and no one else.
  • Like with any other kind of loan (such as a car loan) you will have a timetable by which you have to pay back what you borrowed. That loan will, of course, carry interest with it.

When it comes to getting a loan from a bank or finance company, you should also know that doing so requires a lot of research.

Lenders are hesitant to extend loans to first time entrepreneurs because of the level of risk associated with running your own business for the first time.

You can increase your chances by constructing a strong business plan that will outline how your company will be run. You should be aware of the fact that, even if you are successful, you may have to put up collateral.

When figuring out how to obtain funding for a business, these are two ways that you can approach it…

But, in a few instances…

You can obtain a grant

Free money that doesn’t have to be paid back; how does that sound?  In answering how to obtain funding for a business, this is the most attractive option.

This is what a grant is, in essence. Since grants are given to an entrepreneur and don’t have to be paid back, this is the best way to find a business but, of course, there are some things associated with grants that make them harder to come by than any other source of funding.

  • Some grants may not give you full funding, but what you do get may still be substantial enough to get you going.
  • As stated, the money is yours. There is no paying it back.
  • Grants are only given to enterprises that are applicable, meaning that your company has to be in a certain field or sector to even be considered. This usually means something like a non-profit organization
  • You will likely have to abide by certain conditions once you begin your operations

Because grants are free money given only to certain enterprises, they can be harder to find and harder still to obtain.

If a grant is your answer to how to obtain funding for a business, then you want to get started on applying as soon as possible, because the application and approval process can take time.

Which one is right for you?

What’s right for one kind of business may not necessarily be correct for another, so you want to think about your source of funding very carefully when you are running your business.

Take a look at the kind of business that you want to run and what you need in order to make your vision happen.

Your startup might not require the things that others need in their daily operations, so look at every area of your business, from personnel down to supplies, and you’ll get a general idea of how much seed money you need.

Once you take that into account, the task of answering the question of “how to obtain funding for a business” gets a little easier.

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

Contact us for more information on how we can help you grow your business. Follow us on Twitter @portalcfo