The Top 5 Ways for SMEs to Improve Their Finances
Big business starts with small financial decisions, decisions that can be incorporated into the business strategy of SMEs to see the kind of exponential growth that would make Richard Branson tremble with envy.
It’s more pressing than ever that small businesses learn how to plug the holes in the hull of their financial enterprise, not only to keep them afloat, but to help them set sail into a larger corporate future.
Here are a few ways you can improve your company’s finances and see your business grow in no time.
Make Payments Easy For Customers
Barclaycard recently conducted a study revealing that SMEs are losing over £10, 000 on average per year – £7.5 billion collectively – due to failure to implement credit and debit card payments. Despite 74.5% of all retail transactions being carried out this way, nearly 60% of SMEs are not currently able to take card payments.
Initial costs for setting up a direct debit and credit card payment system may seem substantial, but in the long run the extra sales will more than make up for the immediate expenditure.
Be Assertive With Payments
When you complete a project for a client, invoice them immediately. The faster the money is in your account, the earlier your business can grow.
Be integral; if you press your clients for punctual payments, make sure that you are paying all of your suppliers on time, too. Not only is it good business practice, but it’ll also keep you on top of invoicing and helps extinguish any procrastinatory habits.
A lot of SMEs find dealing with customer enquiries takes up far too much time. With an expanding business, you can expect the phone to be ringing a lot more often, so train one of your employees to handle customer services or hire dedicated specialist personnel.
A cheaper method might be to outsource customer calls to an independent calls management agency like AlldayPA. Not only does this reduce your workload and increase your staff’s time efficiency, but it allows you to also take out-of-hours telephone calls, making your company more accessible without compromising your downtime.
Offer Retainer Packages
If you’ve had some clients for longer than six months still paying you on a project-to-project basis, it might be time to offer them a retainer package. Retainers promise a more consistent cash-flow thanks to up-front payments, meaning that you can focus more time on delivering what you promise than worrying about where your income is coming from.
Entice your clients with benefits exclusive to retainers, such as a reduced monthly fee. Your profit may drop initially, but the consistent cash-flow will keep you financially strong in the coming months.
Review Your Insurance Policies
Consider what you’re currently paying for your insurance policies. If left unchecked, you could be paying premium for a policy that you get far cheaper elsewhere. Keep on top of your insurance expenses by regularly checking the market for any better deals. It could save you thousands in the long run.
You don’t need to be a genius to see growth in your company; all it takes is an awareness of where you can save and a dedication to seeing your business expand. After all, success comes before work only in the dictionary.