Want your business to grow and stay ahead of the curve this year—and even beyond? Make it happen with these practical tips tailored for small businesses.
Owning a business means you have to be on top of things. You need to ensure you stay ahead to avoid getting in the red. You have to identify which risks to take to bring you closer to business success. And you need to know how to improve and achieve constant growth.
Why?
Small businesses, in particular, are vulnerable to various factors. But if you’re well-equipped to handle them, you can meet your desired outcomes.
This article will help you do just that. Keep reading to discover seven practical and actionable tips to ensure your business’s growth this 2024—and beyond.
The 7 Tips
Tip #1. Build Your Cash Reserves
According to Forbes, 38% of businesses fail because they don’t exhaust their cash reserves. This is a pool of liquid assets set aside that allows you to cover short-term cash flow needs or emergencies. And it can help you weather financial challenges and unexpected expenses.
With a buffer of funds readily available, you can also take advantage of growth opportunities while having greater flexibility and agility in decision-making. For instance, you can invest in new initiatives and navigate market fluctuations with confidence.
Cash reserves also help you meet financial obligations even when your business doesn’t have enough cash flowing in. Ultimately, it helps position your business for long-term success.
Tip #2. Make Use of Technology
Technology can empower you to streamline processes in your business.
For instance, accounting software and financial management systems like Xero and Sage can help you automate data collection. They can provide you with up-to-date and accurate information about your business much faster and with less effort.
Such systems also let you consolidate your financial data from many sources. This allows you to have a comprehensive view of your business’s financial state. Then, you can analyse that data to identify trends that influence your business.
Technology can also make it easier for you to plan and prepare for possible risks. In fact, according to The Dope, using AI-driven cash flow forecasting solutions could lead to a 30% improvement in cash flow forecasting accuracy.
Tip #3. Diversify Revenue Streams
As they say, “Don’t put all your eggs in one basket.”
And it’s true.
Relying on a single source of revenue can leave you and your business vulnerable to various factors.
Meanwhile, by diversifying your revenue streams, you can reduce your vulnerability to economic fluctuations. You can ensure that your business remains stable despite changes in market conditions.
Diversification can also unlock opportunities for growth and innovation.
By tapping into new customer segments, for instance, you can expand your customer base and increase your market share. Catering to diverse customer needs and preferences can also enhance your competitive advantage.
Also, having multiple income streams allows you to mitigate the risks of each one. This then allows you to better stabilise your revenue.
Tip #4. Plan for Your Business
Developing a forecasting model helps you predict your business’s future performance. This can also help you analyse operational data so you can identify patterns and trends in your business.
With a well-crafted forecasting process, you can capitalise on emerging opportunities while mitigating risks. You can also prepare for the challenges that your business could face. And you can adjust your marketing to optimise the use of your resources.
Note that effective forecasting considers both internal and external factors influencing business operations. This way, you get comprehensive insights that allow you to create more effective business plans.
Also, note that the usual time frame for a forecast is 12 months. Any longer than that and it will be harder for you to have an accurate forecast.
Tip #5. Seek Professional Advice
Did you know that small businesses that engaged with consultants reported a 70% increase in operational efficiency?
So, find an expert to help you figure things out. Their expertise and experience allow them to provide tailored guidance to you and your business.
For instance, they can provide you with insights into how cash rate changes may impact your long-term goals. And they can guide you in planning your cash flow, managing debt, and navigating various market conditions.
These consultants can also help you develop and implement financial plans that align with your objectives and risk tolerance. And you also gain access to actionable recommendations to strengthen your business’s financial position.
Simply put, by seeking professional advice, you can make informed decisions on how to better manage and scale your business.
Tip #6. Have an Online Presence
Many business owners know that establishing their online presence is an effective way of reaching and gaining access to a wider range of people. That’s why it’s no surprise that as of 2024, reportedly 72% of small businesses have a website.
That’s not all.
Leveraging social media has also been found effective in marketing businesses. This is why the number of businesses capitalising on various social media platforms increases day by day.
So, if you want your business to remain competitive, especially in 2024, establish your business’s online presence. We’re talking about not just having a business website and social media accounts but also paid advertisements.
But you have to identify which online channels to maximise. Choose the channels where your target audience is, then keep appearing in front of them to generate more sales.
Tip #7. Take Note of Customer Feedback
The reality is that a great customer experience will make or break your small business.
So, take note of both positive and negative feedback on your business. Identify how you can improve the service you and your team provide to customers.
What’s more, reviews and feedback from customers can either improve or damage your business’s reputation. Your potential customers are likely to trust them over your marketing campaigns, so you want to make a good impression.
For negative feedback, in particular, make sure to visibly address them. Don’t take things personally and use that feedback as an opportunity to do better. Let everyone know that you acknowledge that feedback and that you’re being proactive with them.
Ready to Scale Your Small Business?
Each year brings new sets of challenges, especially to small businesses. And with these seven tips, you can find yourself in a better position to navigate whatever scenarios you face from this point on.
With that, you’ll be on track to further business growth this year and the next.
Now, if funding is an issue in scaling your business, Unsecured Finance Australia is here to help. Apply online and you can receive your approval within 24 hours.
