Business relationships and meeting new contacts

7 ways to make strong business relationships that last

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Part 1 of the “Business relationships series”: The important steps for making, keeping and strengthening business relationships so your company can thrive. 

Business relationships and meeting new contacts

Turning prospects into customers — and ecstatic customers at that — is the holy grail of small and medium-sized businesses. Building a customer base from scratch is hard, but with the right strategies, you can turn a snowball into an avalanche pretty quickly.

Building strong business relationships — with customers, referral sources and suppliers — is essential for modern businesses to succeed. 

Here are some key tips for converting strangers into loyal customers:

1. Have sales and marketing work in sync 

It’s more important than ever for these two teams to work side-by-side. Not all customers have the same buying journey, so the sales team needs marketing’s support to be efficient and flexible. At the same time, marketing efforts need to be proactive and able to build customer relationships at different speeds. 

2. Don’t drop the sales ball

Business relationships with Sales team

It’s also important that, after all the hard work to make new contacts, create leads and get positive brand equity, that your team doesn’t drop the ball during the sales process. This can happen, even unintentionally, if you aren’t managing your lists to reach out to contacts, start the conversation or follow-up at the right times. 

But more importantly, remind your Sales team that building relationships is key to long-term success. While they may have a short-term quota, it’s critical to get to know the contact. 

3. Set goals around building relationships

The prospect’s experience with your reps needs to be of the highest quality, not only to convert them into customers but also to set up high expectations of what doing business with you will be like. 

Set internal goals around the customer experience and SLAs around response time and quality of follow-ups, so that you can hold your team accountable for building relationships. Encourage team members to meet objectives through gamification, bonuses and regular reviews.

4. Mine useful customer data — and use it effectively

Business relationships and customer data

Invest in software that will enable you to identify and track your potential customers and deliver insights that you can quickly and successfully act upon. This information can be used by the sales team to understand how close each prospect is to becoming a customer, and how best to move them along that journey.

5. Get personal

Make interactions personal, based on what you’ve discovered about the prospect. This customizes their experience, makes your interactions more meaningful and will encourage them to take the next step. 

6. Deliver real value before asking for anything

Provide prospects with something of real value well before they become customers. This could either be a piece of useful and actionable advice, a valuable referral, a customer story that fits your prospect’s situation, or a white paper that addresses one of their main concerns. 

By constantly providing value, you’ll set your company up as trustworthy, an expert in your field and worthy of your prospect’s business. 

7. Check in with prospects frequently

Stay top-of-mind by keeping in touch with prospects regularly. But don’t just send them a generic email. Find out if there are any key issues they’re going through and, as per the previous tip, and deliver something valuable. 

 

At Liquid Capital, we’re business owners, too. We understand what challenges our clients are facing and the importance of evolving their businesses in the new normal. While we’re dedicated to helping our clients out with their financing needs, we also get to know them and understand their business opportunities, so we can work out how to be the most useful partners.

We have a versatile, unique range of financing solutions, such as invoice factoring, that suit many sizes and types of businesses. Get in touch today to find out how we can help and how much working capital we can provide your business. 

 

Images by Paval Danilyuk, George Morina and fauxels.

Financiamientos recientes de Liquid Capital Septiembre 2021

Financiamientos recientes de Liquid Capital Septiembre 2021

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Financiamientos recientes de Liquid Capital Septiembre 2021

mental health for entrepreneurs

Positive mental health practices for entrepreneurs

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Part 2 in our series on self-care in business, and how mental health practices for entrepreneurs and business owners can improve your work-life balance, productivity and efficiency.

mental health for entrepreneurs

Being an entrepreneur is not for the faint of heart. While you enjoy the benefits of setting your own goals, hours and definition of success, those benefits come with long days, putting out fires, and a lot of self-reliance. 

Managing the inevitable stress — and even burnout — you may come up against as an entrepreneur, while at the same time working hard to scale your business, manage your staff and deal with whatever life throws at you can be incredibly taxing. And when you are a small or medium-sized business, managing those concerns can be tricky without the programs and policies that are only feasible for larger enterprises. 

Keep reading for accessible ways to engage in self-care to ensure that you stay on top of your game. 

Managing your work-life balance

If you’re feeling the effects of stress on your mental health, you’re not alone. In fact, a 2019 US study by the National Institute of Mental Health found that 72% of entrepreneurs reported mental health concerns. A similar 2019 study by the Canadian Mental Health Association (CMHA) found that 46% of entrepreneurs reported that mental health concerns impacted their ability to work. 

When the CMHA asked entrepreneurs what they needed most to maintain positive mental health, “more than half (57%) reported they needed work-life balance.” The most common coping strategy, however, was “being persistent,” which is not necessarily feasible or effective. 

But this doesn’t mean that a happy work-life balance is beyond reach! When you don’t have access to professional mental health practitioners, employee assistance programs, or the staff to help shoulder some of your workload, there are some simple ways to support your mental health.

1. Schedule breaks like appointments

Many of us feel guilty for taking time away from work when our success rests squarely on our own shoulders. But when you recognize that breaks are actually an investment in yourself, including your ability to make sound decisions and produce your best work, it’s easier to see how crucial they are to your performance. 

Instead of squeezing in time for a quick break whenever you can fit it in, schedule your breaks just like you would any other appointment or meeting. This is helpful whether you are at the office or you are working from home.

For example, one BC-based communications entrepreneur schedules his yoga classes and golf games into his calendar like he would a client meeting. “So, if somebody calls and says, ‘Hey, can we meet?’ I just go, ‘No, I have an appointment then.’ I don’t feel guilty about it anymore the way I used to. This is a necessary component for me to be able to perform at a high level. So, I’ve got to take care of myself first.”

2. Find a release

It’s important to allow ourselves time to recharge so that we can come back to our work with fresh eyes. This means that when you do take a break, even just for 15 or 30 minutes, you need to allow yourself to completely disconnect from your job. 

That could be something physically active like hiking, something creative like painting, or other hobbies and activities you love, such as gardening, spending time with your kids and pets, or even reading a novel.

In fact, a 2012 study from Stanford University found that there is a significant increase in blood flow to the parts of the brain associated with executive functioning when you are closely reading literature.

3. Talk to other entrepreneurs

Entrepreneurs are often isolated – you have to rely on yourself to problem solve and manage your own health. Reaching out to other entrepreneurs, colleagues or friends to simply talk about the issues you’re facing can be hugely helpful in working through those issues. 

When we normalize talking about our mental health, we find not only more avenues to cope, but that we’re not alone in what we’re going through.

4. Revamp your nutrition

Long hours fuelled by coffee and protein bars may sound familiar, but it’s not doing anything to help you be at your best. Harvard researchers found that diets high in vegetables, fruit, unprocessed grains, fish and little red meat or dairy can lead to a 35% decrease in the risk of depression. This is because 95% of our serotonin is produced in our gastrointestinal tract. 

Researchers explain that “your gastrointestinal tract is lined with a hundred million nerve cells, or neurons, it makes sense that the inner workings of your digestive system don’t just help you digest food, but also guide your emotions.” If you don’t have the time to cook, explore the possibilities of food delivery subscriptions that make nutritious meals more convenient.

 

Being an entrepreneur can be both exhilarating and exhausting. By finding mental health practices for entrepreneurs, including simple and inexpensive ways to prioritize yourself, you can better prepare for those moments when you need to be operating at your best. Take your mental health seriously – your business will thank you.

At Liquid Capital, we’re business owners, too, and we understand the many challenges that owners and enterprises face. We work alongside our clients as true partners, and we’re not only ready to help assist with your financial needs, but also in other strategic areas that can help take some weight off your shoulders and keep your business growing.

 

Missed part 1? Learn how to build more self-care into your business and build a sustainable routine.

Cash flow crisis

Sail through a cash flow crisis — 5 places to batten down the hatches

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Part 2 in our “cash flow through uncertainty” series. Missed part one? Read «How to manage cash flow through uncertainty.»

Cash flow crisis

When you’re in the thick of a full-blown crisis and know what you’re up against, what can you do to come out the other side intact? What strategies can you use and what resources can you lean on? 

Here are five places you can focus your attention:

1. Focus on your customers

Your best customers are a great resource in times of crisis. You could offer them hard-to-shift inventory at a discount and give favourable terms for paying invoices early. Now is also a good time to contact old customers: use your CRM software or run a report from your sales software and send them offers that can turn inventory into quick cash.  

2. Be proactive with your receivables process

Make sure your invoices are extremely clear, with a specific due date, purchase order number, details of the goods or services the bill is for and the name of the person who placed the order. Send out a reminder when the due date is close and another when it passes. Pick up the phone and call if you still don’t receive payment. Make it easy for customers to pay: offer e-transfer, credit and debit card and mobile payment options. 

3. Consider invoice factoring

This financing option allows you to sell your invoices to an invoice factoring company such as Liquid Capital for a small fee. You receive money owed much faster, and, because it’s not a loan, there is no interest to pay. This can be a really effective cash flow strategy for businesses during a crisis.

More questions about invoice factoring? Get the answers here:

4. Try and extend your payables

Talk to your key suppliers and try and improve your payment terms. Negotiate longer payment periods or ask for a discount if you pay sooner. 

5. Review your cash flow forecasts constantly

During a crisis, you need to keep on top of your cash. Look over your cash balances daily and reconcile them with a robust accounting software so you constantly know how much cash you’re holding at any given time. Review your forecasts more often than in normal times: at least every three months.

 

If you’re looking for some guidance to improve your cash flow during a crisis, get in touch with us and we’d be happy to chat. We’ll review your current cash flow along with options to improve your business situation so you can take the next step in your strategy with confidence.

Cash flow through uncertainty

How to manage cash flow through uncertainty

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Part 1 in our «cash flow through uncertainty» series.

Cash flow through uncertainty

The COVID-19 pandemic has proven a big test for many small and medium-sized businesses. Being able to manage cash flow during its various stages was key to many companies’ survival, but sadly, those who were not prepared did not survive. 

Crises can take many shapes: from another pandemic to an unexpected industry meltdown or an abrupt change in a business owner’s personal circumstances. 

It pays, therefore, to have tactics and resources ready when faced with times of uncertainty, a crisis or recovery. This forward-thinking planning will give your business a better chance to not only survive the next crisis, but to come out the other side even stronger.  

Managing cash flow in uncertain times

During a prolonged period of uncertainty, small and medium-sized companies can’t afford to carry on business as usual. When you can’t be sure of what’s around the corner, you need to be prepared for what might be up ahead. Having solid cash flow is essential to ensure that you can keep producing your products or service, pay your staff and keep the lights on. 

There are a number of strategies you can use when uncertainty makes it difficult to plan with any accuracy:

1. Set up financing options

It can be a lot easier to put financing in place before you actually need it. One strategy is to arrange for a rolling line of credit in case cash flow becomes tight. The big advantage of a line of credit is that you don’t pay interest until you use it. It’s extremely flexible and allows you to borrow and pay back at any time. You may never need it but setting it up now could help you to survive if things go sideways. It can also help you to have peace of mind, knowing that you have a back-up option if cash becomes tight. 

2. Factor your way ahead

Since many businesses are already extended on their credit or cannot qualify for traditional financing, you may also consider invoice factoring as another way to improve your cash flow in uncertain times. By accessing working capital based on selling your open invoices, you won’t go further into debt and you can gain immediate inflows — and you won’t be paying interest or penalties compared to other types of financing.

3. Hit the growth pause button

Going ahead with aggressive (or even moderate) growth plans during uncertain times can be devastating. Stretching your finances by expanding, taking on more real estate or increasing your employee count may not always be a good idea if the economy is on the verge of a dip. Put those expansion plans on the back burner until you feel that the situation has become steadier and more predictable.

4. Reassess your inventory

Take a good look at your stock and see if there is anything that can go. Inventory that you know can take a long time to sell, or an excess amount of any particular stock could be cleared out quickly to turn it into much-needed cash. You could either offer it to your best clients in a discounted flash sale or sell it to a liquidator. 

5. Take a ruthless look at your costs

Improving your cash flow in uncertain times provides the ideal opportunity to go over your costs in minute detail. Cancel or pause anything that is not absolutely essential to the successful running of your business. Any savings you can make now will help keep your cash flow healthy if things take a turn for the worse. 

Get our Cash Cycle Guide for smart strategies to maintain positive cash flow.

6. Find a trusted alternative finance partner

We would be remiss not to include this tip. You likely have a finance partner at a traditional financial institution, but you should also have alternatives in place if the bank says no. At Liquid Capital, we work alongside you and your banking partner to ensure you get the right mix of financing when you need it.

 

Uncertain times can escalate quickly, especially when a true crisis hits. By getting ahead of the issues, you’ll be prepared to get through a downturn in the market and keep your business prosperous. 

 

Up Next: Sail through a cash flow crisis — 5 places to batten down the hatches