Financially healthy businesses are strong and grow successfully
You have an excellent product or service and decent revenue. However, you're struggling to make significant forward strides. It's vital to know that a key condition for successful growth is your company's financial health. This foundation is built by ensuring focus and manageable processes. And there's hope for your business too, as the solution largely lies within you.
Are you not spending too much time managing all your business processes? What happens when problems arise? Right, you end up working even harder.
This traps you in your own approach. Solving problems is good, but it's better to prevent them as much as possible. But how do you do that?
To achieve their goals, financially healthy businesses maintain the right focus and ensure their processes are manageable. Focus is achieved by consciously deciding what to market and identifying your ideal customer. What are the customer's requirements, and what price are they willing to pay for your product or service?
Then, determine the processes necessary to meet or exceed your customer's expectations and experiences.
But these processes can't be initiated arbitrarily. What are the associated costs, and how can you meet customer expectations and experiences at the lowest possible cost?
Also, when do you need liquid funds to pay for purchases and keep all processes running?
This relates to your company's cash flow, the money coming in and going out. Usually, costs precede benefits, so it's even more important to pay serious attention to this.
Financially healthy companies strongly focus on cash flow. The beauty is that your business's cash flow initially depends on choices made by you or your employees. These choices are related to the focus and processes you've established to achieve your goals (as briefly described above).
A cash flow forecast predicts incoming and outgoing money flows based on expected revenue, associated costs, and existing receivables and obligations. If you have a good understanding of your business activities (overview and insight), you can also manage your company's cash flow, offering opportunities for every entrepreneur.
Why couldn't you be consciously focused on manageable processes, especially now that you know it increases the chance of better choices and thus a better cash flow? Because only when you and your business are 'inControl,' can you achieve a financially healthy business and enable successful growth.
The solution to successful growth largely lies within you, but you must really want it!