How To Dramatically Decrease Small Business Costs In 3 Easy Steps
Turning a profit and creating financial flow
When you have a steady stream of consumers and successfully provide the agreed-upon goods or services without any issues, you will know you have advanced past the existence stage. Small business grants can be part of this. Soon after that, you’ll start comparing sales to expenses a little more closely and start thinking about ways to increase the profitability of your business. After all, there is no other way to expand your business healthily.
Additionally, this is the time when excellent communication is most important. And not only with your employees. You need to be able to interact not only with members of your team (usually your employees, contractors, or freelancers) but also with prospects and clients.
Yes, a business phone will be necessary, but that is the very minimum. You might require additional communication methods in addition to the phone, depending on your industry and your clients’ preferences. Will you need to be able to video chat with clients or contractors who are situated abroad? Would you rather text customers instead? What about quick communication?
If you find yourself in this circumstance, we recommend looking for a solution that combines all of those channels into a single app or piece of software. This reduces the amount of tools you use (and pay for) and simplifies your life because you won’t have to keep track of numerous different tools. For instance, RingCentral’s desktop and mobile apps let you use phone, video, and message services simultaneously.
Maintain profitability while growing?
You have an option. At this stage of your business development, you’ve built operational procedures and client retention plans that keep your margins stable.
To put it another way, your small business is operating automatically.
What should you do next?
That depends entirely on what you want your business to be, though.
At the success stage, you may choose to either let your company enjoy steady profitability or strive for more growth (a high-risk, high-reward choice) (a low-risk, lower-reward option). Your tiny business could soar into the stratosphere—or go bankrupt—if you decide to invest everything you have back into it to expand.
On the other hand, sustained profitability enables you to delegate part of your founding responsibilities to others and pursue other interests, but your absence may risk the future of your business. Having said that, you always have the choice to experience consistent profitability while continuing to have a significant role in the day-to-day management of your company. Let’s imagine for a second that you made the decision to take the risk at the success stage.
You put all of your company’s income and extra resources back into the business in an attempt to achieve extremely rapid growth.
And it succeeded!
Your small firm is currently in the take-off stage, which happens when you enjoy quick growth. This stage is both exciting and terrifying since significant expansion necessitates enormous sums of money to maintain covering overhead (e.g., employees, rent, vendors, etc.).
At this point, it is crucial for you to start creating a pitch deck and reaching out to investors since, if you don’t start raising money quickly, you’ll be headed down an expedited route to bankruptcy.