5 Ways to Strengthen Your Business
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Keep your business thriving by taking time to look beyond daily operations.
It’s not surprising that day-to-day operations often keep business owners from looking at the bigger picture. However, it’s a good idea to step back periodically and evaluate how well prepared you are for the future. Here are five things that deserve a closer look and can help strengthen your business.
Diversify your clients
Does more than half of your income come from a single client? While there is a certain ease of doing most of your business with one organization, your cash flow can take a huge hit if they scale back on work or if the work dries up completely.
Protect your financial well-being by developing a diversified client base. This way, if one client cuts back or can’t pay, the others continue to be a source of income.
Plan for a rainy day
Unexpected expenses and clients who don’t pay can quickly escalate into a financial crisis if you’re not prepared. Some experts recommend having six to three months of operating expenses. Setting up a business line of credit before you need access to cash also helps prepare for a rainy day.
Call in experts when needed
Starting a business requires you to become a Jack or Jill of all trades. As your business grows, it becomes more complex. Be mindful of how you and your employees are spending your time. Are you at point where it makes sense to outsource payroll? Perhaps it’s time to consult with a tax advisor if you’re going to make substantially more this year. Do you have time to keep up with health insurance changes? Calling in an expert can free up your time for more profitable activities, help you plan and help avoid pitfalls you don’t even know exist.
Make yourself dispensable
No, we don’t mean you should fire yourself. It is a good idea, though, to equip your team to run the business—and keep the income flowing—while you’re not there.
Making yourself dispensable means making your business less dependent on you. It means your business will still run if you take a vacation or if you can’t work for some reason. Help your team learn the ropes, take more responsibility and make more decisions.
Does letting go of control sound challenging? It is for many people, especially when it comes to a business they started from the ground up. It’s okay to make this transition slowly. Incremental steps like taking off half a day and working up to a week away from the office allows you and your team to adapt and grow.
Take care of you
Small business owners are often so busy with work that they don’t take time for their own physical and mental well-being. Eventually fatigue, stress and health problems are likely to interfere with your ability to make sound decisions and do your work. Scheduling downtime for relaxation and rejuvenation will help your performance over the long-term. If you have a hard time doing this for yourself, do it to set an example for your employees to help them avoid burnout, too.
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