When running a small business, if you don't know how to make money, your business will die. This is in part because large corporations have systems and processes in place that small businesses often don't. We selected some tips to make a smaller company expand. For their smaller business to expand, they need a way to create predictability and reliability in their daily operations. These are some important steps that the entrepreneur must observe, including:
leadership Leadership comprises the first step:
• Have strategic planning
• Have a compelling vision
• Know what and when to hire and sell
• Everyone is busy but the business isn't growing
The leader and leadership team's primary job is to clearly define a destination and then reverse engineer a plan to get there.
Very few corporate mission statements include economic objectives. That's a mistake to try to make a smaller company expand. The business exists to generate profit while creating value for customers. This shouldn't be a hidden agenda. Priorities must be specific and measurable, drive company revenue and drive company profit.
Human beings are transformed when they want something that requires them to be a better version of themselves to achieve that something. The best talent wants more than anything else to work for a business that will help them become a high-value professional.
Here are three questions to ask when determining key traits:
What specific characteristics will each of us need to create or sell the products that solve our customers' problems?
What characteristics will we need to maintain when challenges seem overwhelming?
What characteristics will we need to create a safe and encouraging culture?
Now that you know three economic priorities and what type of people you need to become to achieve your financial goals, let's talk about what actions we need to take to live out our mission.
Marketing Marketing comprises the second step to make a smaller company expand and it is necessary to solve these problems:
• You're not sure how to talk about your products so they sell
• Your website and marketing material aren't converting into sales
• Your social networks don't have a controlling idea
• You didn't create a brand.
Our marketing effort will focus on a clear objective: to explain what our products have to offer in such clear and simple language that everyone understands why they should buy our products and is motivated to do so.
People only buy products and services to solve problems. If you talk about the problems your customers experience, you're opening up even more of the story cycle that they must buy your product to solve.
You need to provide your customers with three or four steps they'll need to take to buy your product and solve their problem.
It's a strange phenomenon, but people don't tend to do things unless you ask them to do things. And shopping is one of those things. Call your customer to action with confidence.
Sales To make a smaller company expand, sales actions comprise an important step:
• You don't like to sell, but you know what you need to to grow your business
• You don't feel comfortable asking for money
• You don't know how to write a sales email that will immediately close sales
• You need more sales and you need them now.
Every small business owner and every account executive or sales representative should know how to craft a million-plus sales pitch. That means a sales pitch that can be used over and over to win a million or more, no matter how big or small your business is. If you know how to craft a great sales pitch, you can bring millions in revenue to your small business.
Few of us who run or own a small business think like sellers, but the truth is that we all have to sell. Otherwise, our small businesses tend not to work out.
Products The fourth step will help you solve these problems and make a smaller company expand:
• You're not sure which of your products are producing the most profit
• Your product offering is getting boring for your customers
• You need more money and you need it fast
• You don't have a process in place to sell products to existing customers
Your marketing and sales mechanisms will only work if they have a product to sell. The question to ask is: how can you work as hard as you are working now and generate more revenue. So how do we optimize our product and service offerings. There are three exercises you can perform:
Classify your products by profit. Look at current deals and be brutally honest about what's bringing money and what's weighing your plane down.
Review of products and services to see if you can offer new ones that will bring more revenue and profit.
Use a product summary to decide which products you should create to grow your business. This is an aspect that you should evaluate every time you have a new product idea that will help you understand whether or not the new product is a good idea.
When you execute these three exercises, and continue to do them regularly, you will improve your business, making sure that it is supported by firm pillars.
General Expenses and Operations The fifth step to expanding a smaller company will help you solve these problems:
Unplanned expenses, lack of budgetsTeam members aren't getting consistent feedback Your culture seems like organized chaos. Your leaders need better management skills For most small businesses, spending bloat should be a permanent focus of attention. We can't let people go unmonitored. Instead of letting everyone go, your entire workforce becomes a business-building group of focused professionals who contribute powerfully to results. This means that your business would start to grow and your overload would turn into an investment rather than an expense.
All you have to do is start holding separate meetings. This may seem like a lot of meetings, but these meetings are designed to replace most of the meetings that are currently hindering you:
The meeting of all employees:
Every Monday morning, the entire team meets with a triple meeting purpose:
Maintain alignment and focus around economic priorities, Update the entire team on any initiatives or successes of the department, and Keep morale high by publicly honoring team members who are demonstrating exceptional work that helps your team progress toward its three economic priorities. Leadership Meeting It occurs shortly after the All Employees Meeting. It brings together the heads of departments and is intended to talk about the main initiatives under way, as well as to resolve any obstacles that are holding back their economic objectives. Department leaders set objectives for the next working days and address any obstacles that team members may be facing.
The Personal Priority Speed Check It's critical to maintaining high productivity and morale. In a brief meeting, leaders meet with individual team members each week to expand each person's responsibilities within the team context.
Quarterly performance reviews Each quarter, you'll carefully evaluate the performance of each team member. These conversations are a mix between management and coaching, in which each team member can understand how to improve their professional career.
Your business must have leadership and management meetings, focusing on your economic priorities and taking your productivity to its highest level and your company will be making much more money.
Cash Flow Cash flow also includes another important step in making smaller companies expand, and will help solve these problems:
You're not sure where your personal finances and business finances start and end You constantly worry about running out of money You're not sure how much profit the company actually makes Do you want the small business to help you make foreign investments that build wealth? Even if your business is designed to be perfect, it's shockingly easy to run out of money. Your cash flow is your fuel. If you have plenty, you can fly far and fast and not have a headache when there are problems.
So, how to manage money in such a way that we can pay our bills, enjoy a great salary, save some profit to overcome critical periods, pay taxes, invest outside the business and, most importantly, never run out of money. The answer lies in managing your small business's cash flows using cash management concepts for key cash needs centers.
You no longer have to sweat your finances if you manage your money and it will allow you to:
See your company's overall health in an instant Separate personal and business money Never miss tax time Feel confident that your business can survive a setback See how much money is being saved to create personal wealth The checking accounts that you'll use to manage your small business's finances flow in and out of each other to create a fluid system that gives you optics and control over your money. Here's a description of each one and how to use them:
Operating Cash All the money that comes in and out of your business will go in and out of that account. This is the main account that you'll use to pay bills, including your personal salary.
Personal Box This account will receive an automated transfer from the business account that will make up your personal salary.
Cash Profit from the business: It's where you store the money your business earns that you don't have to go back to the company to keep it alive.
Tax Caixa It's where you're going to put the money you're going to use to pay taxes.
Caixa Investing It's where you put money and keep it for more critical periods or new investments. When it gets so big that it doesn't make sense to save everything for an emergency fund, you'll move some of the money to buy foreign investments.
The work you're doing to build your business is important. People's quality of life, including yours, improves as we do the work. Here's the success of your business and how to make a smaller company expand.
Get in touch with TATICCA Allinial Global Brazil , which provides integrated auditing, accounting, tax, corporate finance, financial advisory, risk advisory, technology, business consulting and training services. For more information, visit www.taticca.com.br or email taticca@taticca.com.br. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.
