If you want to improve the financial aspect of your family business, start with smart changes that will bring you great results.
Even when a family business is doing well, there’s always room for improvement. Especially if you want your company to make more money or have better cash flow.
Here are three quick ways to improve financial performance that apply to every company, big and small.
Some family business owners start with the idea that their business needs to make more money to cover all expenses. But what if you reverse the order and see if you can reduce your expenses?
Perform an evaluation of your expenses and see if there are areas where your business is spending more than necessary. A couple of rearrangements could make a sizeable difference.
For example, you may want to negotiate with your suppliers to get a better deal. You could also switch your insurance company if another company offers the same level of coverage at a more reasonable price.
Finally, you could discuss a periodic payment plan for larger expenses to make it easier on your company’s finances.
Offer More Payment Methods
If you’re working directly with customers, you may offer additional payment options. Doing so may let you attract many more customers at the cost of a little work.
Everyone has a preferred payment method and if you don’t have that option available, they may move on or are at least less likely to buy repeatedly.
If you don’t have a webshop, you could upgrade your site to include one and have multiple payment methods available for customers. Besides credit and debit cards, some of the popular ones you can offer include PayPal, Skrill, Google Pay, etc.
Family businesses that have broadened their accepted payment methods have mostly experienced an increase in sales and customer satisfaction.
Change Your Marketing Strategy
Many family businesses are spending a lot of money on marketing. Having a marketing budget is fine, but if you’re not doing great, consider downsizing or trying something else.
Social networks and blogs are very powerful tools for building an audience that trusts you. It’s also a cheaper and faster channel to get your message across. Try it and you may realise that you could cut your marketing budget in half.
You don’t have to pay for ads, either. Instead, you only spend time creating content and engaging with the audience.
Building an organic presence on social media won’t happen overnight. But if you know what you’re doing or have someone on your staff that does, a month of constant work may be enough to get your foot in the door.
If you want to improve your company’s financial performance, you don’t have to do anything drastic. Small and smart changes can already lead you to where you want to be.
Every family business can rearrange its expenses, offer more payment options, and get the most out of social media.
Try using these strategies for a few months and you may be pleasantly surprised by the results.