cash flow

The Five Best Tips to Grow Your Business

There are five tips for growing your business that will help you get products to market faster, win more customers, boost your margins and deliver a superior experience to every stakeholder. Your competitors won’t know what just happened to them if you follow these five tips to grow your business:

1. Focus on the Customer Experience

As a rule of thumb, it’s seven times more expensive to acquire a new customer than to keep an existing one, so your business should be laser-focused on offering the best possible customer experience and encouraging your most passionate customers to become advocates and ambassadors for your business.

That means understanding what makes your best customers tick—what are their hopes, interests and expectations? Some businesses even go so far as to create customer personas that help them identify the specific types of people (ex. a single mother who works full-time and only buys premium products for her kids) that are the best customers for their business.

2. Keep an Eye on Your Cash Flow

One of the most important financial reports of any company is the statement of cash flows. It lets you know exactly how your company is converting cash into profits. Ultimately, cash flow is what lets you pay employees and vendors, pay off debts and invest in new equipment. If your business is burning cash too quickly, that could be an early warning sign that there are significant financial problems within your business.

3. Invest in a Reporting Analytics Package

Data matters more than ever in today’s hyper-competitive business landscape. With big data, you’ll be able to help you identify new customer segments, new niches, and new ways to expand. At the very least, it will give you a real-time look at how your business is performing and enable you to perform sophisticated report analysis.

4. Optimize Your Supply Chain

Just-in-time is the buzzword in inventory management and it’s a great strategy to increase efficiency and reduce inventory costs. If you have too much inventory (think of warehouses overflowing with products), you are going to tie up too much cash and impede the growth of your business. If you have too little inventory (think of nearly empty warehouses), you are going to have a very difficult time re-stocking your retail shelves. The solution is just-in-time inventory management, in which products appear exactly when they are needed. To make that a reality, you need to optimize your supply chain, so that products can make their way to your warehouse just in time.

5. Always be Innovating

In business, there’s no time to just stand still. You need to be constantly innovating, constantly pushing the envelope of what’s possible with your business. Think about what new products you can offer customers, what new niches you can explore, and how you can surprise and delight your customers.

By getting every part of your business—sales, marketing, finance, operations—working together seamlessly, you can guarantee the future success of your business, no matter how big or small it is.