How come some of the biggest businesses empires
like Enron, Lehman Brothers, and many more have collapsed suddenly?
Were they not being managed by professionals? Were they not able to
hire all those success teaching mentors who have been minting money
selling their lectures and books on tips to manage businesses
successfully? These questions raise the doubt that there might be a
very same rat creeping down your establishments, too. Similarly, this
also supports the truth that you always need to learn new things to
keep your business going and growing, too.
For example, what do you now about cash flow in your business? Is it
negative or positive? This is something you would not have considered
so far because even a negative cash flow doesn’t show an immediate sign
of loss in a big business, but it does nibbles at net worth. A
business, with a negative cash flow has to fund each of its sales to
some extent. For example if its negative cash flow is 10% of its gross
revenue, it has to fund $0.10 on every sell of $1.00. Initially, in
flow of business, one may keep it paying and not realize the impact by
delaying creditors’ payment, increasing credit limits by bank, or some
other means but eventually business runs out of cash and bursts like a
bomb.
Here are some tips to improve your business:
1. Cross-sell to increase your prices – cross selling is a powerful way
of increasing your overall transaction value and thereby increase
profit. McDonalds has nourished it in its blood.
2. Increase Your Prices – A good way to increase your sell is to
increase prices. Businesses often fear that they would loose customers
if they increase prices. But the fact is only a few of them leave that
product and a new class of customers joins in exchange.
3. Improve Your Yellow Page Ad – People in business often take this
great instrument of success as trifle. They do not put as much efforts
in their yellow ads as they should have. It does make a tremendous
difference to your sales.
4. Improve Marketing – ‘words-of-mouth’ has always been the most
effective marketing tools. ‘Viral marketing’ is its new avatar. Exhaust
it.
5. Monitor Cash Flow – A negative cash flow might prove lethal to your
business. Keep watch on it. Get your cash flow calculated by experts
periodically. Even when you are making profits.
6. Increase Profits Pay Taxes – A lot of the businesses keep from
making profits to avoid paying more taxes, which is not right. Increase
profit, pay taxes.
7. Stay Open for New Ideas – People often are found to be happy
revolving in a rut. Once they have set a successful business they keep
it going that way. Stay open for new ideas from employees, customers
and from anywhere.
8. Count Customers – People often end up counting profits while they
should concentrate on counting customers and keeping them. Your profit
will naturally increase if your customers do.
9. Hire Professionals – It is often a case with most of the business
that they, in attempts to cut cost, compromise with the quality of some
important investments, too. Save where you can but pay where you
should.
10. Rely on Workers’ Capacity – Small businesses take time to grow
because their masters are afraid of accepting more load than their
personal capacity to bear it. The truth is they should rely on their
workers capacity which they can always increase to any extent.
Article Source: http://
www.articlesbase.com/small-business-articles/top-ten-tips-to-
improve-business-1642024.html
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