There are various ways to scale your business and meet your goals, but the surest path to getting there is to make sure that you’re maximizing your existing resources. While no enterprise goes into a new business strategy with the goal of “neglecting” available resources, the truth is that several valuable resources can easily go unnoticed. This is more common that you think. If you don’t know what to look for, how would you know to identify them and find new strategies for using them? Here are some key areas to consider when stretching your business resources to maximize your success, longevity, and overall growth.
Stay on top of market research
It’s surprisingly common for enterprises to forget about the value of thorough market research. Having in-depth insights on your ideal and existing customers and executing on that data is the fastest way to meeting their needs and achieving your goals. The issue, however, is that running market research can be costly, leading many businesses to conduct sparse, quick market research that solves short-term problems. But if you’re investing money in new products and sales strategies based on outdated information, you’ll throw precious resources down the drain. With the potential for industry standards, social media trends and target audiences to change so quickly, why would you risk making your make decisions on out-of-date insights?
Having the most current data will do so much more than skyrocket your sales – it will position you as a leader in your industry, deepen your brand loyalty with your customers, expand your reach within your target demographic, and give you a competitive advantage within your niche.
Remember: Bigger isn’t always better
Beyond your market strategy, constantly shifting industry conditions can lead you to update your business plan on a regular basis. Many enterprises still operate under the mentality that “bigger is better” and expansion is the only way to grow, but it’s simply not true. It’s proven that existing business relationships with reoccurring customers have a significantly greater profit potential than new customers, yet many businesses still continue to chase unknown territory. New business relationships commonly produce a higher turnover rate and the profit margins are lower, which is clearly not sustainable.
Of course, this isn’t to say that relying on your existing customers is the sole way to growing your business. It all comes down to finding a careful balance and testing various strategies that will help you maximize your available resources while also finding solutions that work for you.
Keep an eye on your cash flow
For growing businesses, it’s also essential to have control over your cash flow. Unsurprisingly, having cash constraints is the number one factor for limiting growth and risking your business altogether. When handling limited resources, it’s crucial to examine all of your opportunities and decide if pursuing them will completely drain your company or provide a solid return on investment. History is littered with small businesses and entrepreneurs who accepted “large” opportunities that sapped all of the enterprises’ resources and killed both the momentum and energy from their employees and operation.
Every detail of your cash flow should be carefully monitored on a regular basis. There should be regularly scheduled meetings with financial advisors, executives and board members to ensure that you maintain your financial health and stability.
Running effective supplier management can also be necessary for maximizing your resources. Depending on what products or services your enterprise provides, it could be worth considering looking into smaller expenses that are eating away at your resources, such as reducing your delivery cycles or getting a new more affordable supplier than can operate just as efficiently. While these small expenses may seem irrelevant, you would be surprised by how much they can add up and hurt your budget goals.
Luck favors the prepared
Being in “crisis mode” is a very common fear (and occurrence) for growing enterprises. Manufacturing issues can come up, essential staff can turn over and investments can go poorly. Having the ability to move quickly and find immediate solutions when having to troubleshoot and solve last-minute issues is crucial to keeping your business afloat. These unpredictable occurrences can be costly, and being prepared for any disaster is the key to maximizing your resources and overcoming it.
The problem is that many enterprises see an issue and label the wrong element as the root cause. Essentially, the differences between short-term crises and long-term crises are not always clear, and this lack of clarity can drain a company’s resources with a blink of an eye.
For example, if there is an upset customer, it’s a common reaction to spending as much time as needed to soothe their needs and solving their issue. But when looking at the greater problem, it may become clear that a particular salesperson is the one who led them to buy the wrong product, provided them with poor customer service, or neglected to help them when they needed assistance the first time around. Then, the question is: is it worth investing hours into helping this customer, or is it more important in the long-run to tighten the hiring process for salespeople? How can you improve your training program? How can you provide more support for the entire sales team to make sure that everyone is performing well instead of just focusing on one customer and one salesperson? Although soothing the upset customer might seem like the most urgent need, in the long-run, investing your time and money into improving your sales processes will be the best long-run decision.
While maximizing your available resources might seem like a simple task, you would be surprised how many small, often insignificant aspects of your business can go overlooked and hurt your business in the long-run. For managing all of your budget needs and making sure that they align with your goals, learn more about how MySinglePoint can help you.