In Part 1, we shared a few ways to begin looking at your two-to-four-year growth plan. Here are more tips about how to use this exploratory time wisely so you can make the strategic decisions that will strengthen your pathway to profitability:
Stay current on industry/regional trends
If your business view is only inward, it can be easy to miss what’s happening around you. Earmark time, yours or one of your staff, to research your local area to see what companies are coming in or leaving. What other economic factors are impacting the town and county where you do business? Identify whether there is an opportunity to strengthen business connections or make new ones.
Industry conferences are a great way to educate yourself on up-and-coming trends or those that are phasing out. Networking with your peers provides insight into how comparable companies approach business opportunities and challenges. Vendor shows at conferences make it easy to see what new technology or services are available that could further your company’s growth.
Update your technology
Business technology is always changing; is there something to implement to enhance your new, improved operation? It might be a software upgrade, a file sharing solution, mobile app, or a new computing infrastructure and better managed services.
Reduce variable expenses
Use your operating budget and accurate income & expense reports wisely and compare your budget to actual financials. Always make sure you’re evaluating your stated KPIs to stay on track or chart a new course towards sustained profitability.
Look at variable expenses that can be tightened up to boost profitability further as your income increases. These include:
- Business insurance – shop the market for lower premiums (for same or better coverage)
- Payroll processing – a smaller, boutique provider may give you better service at a lower cost
- Utilities – are you paying too much for office phones and your calling plan, internet connectivity, and gas/electric bills? If you have remote workers, are you proactively managing your wireless costs?
- Shipping, trucking/delivery – new service providers may have entered the market, so be sure to assess new options
- Volume discounts –find out how and when your growing company qualifies for bulk pricing to reduce your cost of goods
Now’s the time to watch your garden grow healthily! If you need some guidance along the path to profitability, CFO Your Way can help. Book a complimentary discovery call with Cheryl Mucha at www.ConsultWithCheryl.com to discuss your needs.