reduce business debt

5 tips to reduce business debt

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Nothing puts a stop faster to business growth than a company in poor financial standings. If you (or your client) need to reduce business debt, start with these top tips.

Growing businesses need to have ample access to working capital, but carrying debt is a problem that holds many companies back. According to USA Today, the average business owner carries around $195,000 in debt, which can tie up much-needed funds.

If you’re spending sleepless nights worrying about your company’s debt load (or your client’s debts), these five tips can help make a difference: 

1. Create a cash flow budget

Creating and maintaining a cash flow budget helps you understand how your business is performing, where your money is going and coming from, and how much you will need to pay for future operational expenses. Despite this vital step, as many as 61% of SMBs operate without a budget. 

To avoid becoming part of the statistic, you can create a budget with these seven main steps:

  1. Use a transaction API to gather data on the last 24 months of expenses.
  2. Calculate your income from all sources.
  3. List variable costs.
  4. Add up fixed expenses.
  5. Estimate additional spending.
  6. Analyze cash flow.
  7. Set spending goals.

Of course, the budgeting process will require time and effort, so it may be worth your while to hire an accountant or, at the very least, outsource your accounting needs to a financial professional.

Create a cash flow budget

2. Cut back on expenses

Aside from creating and adhering to a strict budget, cutting back on business expenses is one of the most effective ways to reduce business debt. Review your budget to see where you’re spending money unnecessarily and to identify costs you can potentially lower.

For example, do you need to rent an office building or can staff work remotely? How much could you save by going paperless?

Think outside of the box and get creative with where you could save money. But remember that cutting too much too fast can also have detrimental effects on your company’s overall performance.

3. Boost your revenue

Another great way to reduce your debt is to increase your revenue. Some easy ways to do this are by increasing your pricing, promoting value add-ons and upgrades, and reaping more value from your operational assets.

4. Consolidate your debt

In many cases, debt becomes burdensome because of high-interest rates. You can reduce your business debt and what you pay in interest, fees and maintenance costs, by consolidating business debt.

5. Seek alternative financing options

If you need to increase your cash flow, consider invoice factoring. This allows you access to working capital by selling your invoices to a factor like Liquid Capital. 

 

Grow your business by reducing your business debt

Business debt can eventually feel paralyzing and hold you back from growing your company. Don’t let it overwhelm you. Take these steps today to get out of debt quickly. 

If you (or your client) need access to extra working capital to help you overcome your cash flow challenges, reach out to a Liquid Capital Principal today.

 

Up next: Improve your access to timely business financing, read the “How to become lender-friendly” guide

Long-term business growth

Build meaningful relationships to fuel long-term business growth

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When you and your team consistently create meaningful relationships with clients, it can lead to long-term business growth.

Long-term business growth

With 92% of consumers worldwide stating that they trust recommendations from friends and family above all other forms of advertising, your current clients are an important lead generation source. Especially with the evolution of the relationship economy.

Here are four ways that your happy clients can contribute to your long-term business growth and success in the relationship economy:

1. Word of mouth marketing

According to a Statista report, nearly 19% of purchase decisions for financial services were impacted by word-of-mouth marketing. By having great relationships with your clients (and other business contacts), you’re more likely to benefit from word-of-mouth marketing and attract new business.

2. Brand loyalty

Brand loyalty is driven by dependability, quality and excellent client experience. If you master these, you’ll enjoy the benefits of seeing higher lifetime value, which can lead to long-term business growth.

 

The beginner’s guide to sales prospecting in the relationship economy

Get your copy of The beginner’s guide to sales prospecting in the relationship economy

 

3. Referrals and access to new networks

When you create a great impression in someone’s network, they may introduce you to new potential leads and prospects. Having strong, mutually-beneficial relationships can help accelerate rapport and shorten the sales cycle – making it faster to connect with new prospects and increase sales. 

4. Testimonials and case studies

Building strong client relationships mean they’ll be more likely to volunteer to share a positive review or testimonial. You can also follow up to interview them for a case study. These kinds of social proof can help you attract additional prospects and support business growth. 

 

“84% of people trust online reviews as much as a personal recommendation.”

— Inc.

 

Enjoy the benefits of boosting your reputation

With 84% of people trusting online reviews as much as their friends, providing a great experience at every step along your buyer’s journey can boost your reputation and attract new clients to your business. 

Remember, your current clients are your best cheerleaders, they can help generate sales and reduce the amount of time, money and effort it takes to generate new ones. 

 

Need to access additional funding on your quest to build better relationships? Consider an alternative funding solution, such as invoice factoring.

Digital networking strategies

Digital networking strategies to reach new clients

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Looking to leverage digital networking strategies to fuel your prospecting efforts? Get started with these top strategies!

Digital networking strategies

Prospecting in the digital world is all about delivering value, building rapport and increasing visibility so you can start conversations on a mass scale. But if you’re busy running your business, it can be daunting to know where to start.

Here are some digital networking strategies to connect with prospects in the relationship economy:

Digital Networking Strategy #1: Use social media to expand your network

LinkedIn is often described as THE professional social media network. It’s a great place to do research and leverage your network for connections. Using LinkedIn’s Sales Navigator and search engine, you can search for prospects who meet your ideal client criteria. 

LinkedIn groups are also a great place to spark conversations and build rapport with potential prospects. For example, if someone makes a post related to your business, your rep can chime in with a helpful answer and follow up personally with relevant resources.

Like LinkedIn, Facebook has a variety of ways to reach potential prospects. Have your team join active groups that discuss topics that relate to your products and services. From there, they can contribute to the conversation and follow up directly with potential prospects. 

Note that your team will need to adhere to the group rules to ensure they’re not removed. Many groups object to direct promotion of products and services.

Remember, before your team starts using LinkedIn, Facebook or any other social media platform, make sure their profiles are clean, clear and consistent across your company for added credibility.

Networking with webinars

Digital Networking Strategy #2: Host and attend webinars

Hosting informational webinars can attract and engage potential prospects. Although they take preparation and expertise to run effectively, they can be an excellent tool for engaging prospects and showcasing your solution.

The webinar should be valuable and relevant for the prospect by providing educational info on a common challenge or question. Presentation formats that can help convert prospects into leads include product demos, content marketing or training on a specific topic. 

Webinars also provide valuable data about the prospects who attend, such as how engaged or attentive they were during the training. This can help your sales reps prioritize who to follow up with and continue to nurture the prospect.

Digital Networking Strategy #3: Leverage email marketing tactics

If you thought that email marketing was no longer relevant, think again! With marketing emails generating $42 for every $1 spent and providing an ROI of 4,200%, it’s still one of the most cost-effective tactics that you can use.

Using a CRM that supports email marketing will allow you to personalize and track your communications — and some can even allow you to build automated workflows that will send out the right message, to the right person, at the right time. This can free up precious time for business owners who have a small team (or are running the business solo).  

Are traditional prospecting strategies still relevant?

While modern prospecting offers new opportunities to connect with others, traditional prospecting still has its place in your sales process. And when you combine digital networking with traditional sales prospecting strategies, it gives you and your team even more chances to network, prospect and build long-term relationships.

 

Up next: Learn how to combine digital and traditional prospecting strategies and help you grow your business.

connect with prospects

Connect with prospects in the digital 2.0 world

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In the relationship economy, successful business owners and sales teams connect with prospects in new ways. Are you?

connect with prospects

Thanks to digital media, there are many ways to engage with potential prospects in the digital world. Here are three of the top ways to leverage digital marketing to connect with prospects in the relationship economy.

1. Social media

This is a gold mine for finding people already talking about products, services or topics related to your business. Join the conversation that’s already happening and be a helpful and valuable presence. From there, sales reps can build relationships and follow up with potential prospects

2. Content marketing

Whether it’s writing a blog or hosting an informational event, there are plenty of ways to get in front of warm audiences who may be interested in your business. Content marketing examples include creating white papers, informational webinars, eBooks, newsletters and other types of written, video-based or graphical resources. Sales reps can track who engages with this content and follow up.

3. Email marketing

Even in a crowded world, email marketing can keep your business top of mind. Reaching out via email is a great way to deliver valuable information, build relationships and stay connected to prospects. Your sales reps can make one-to-one contact or make use of automation, segmented lists and Sales nurture drip sequences to deliver valuable ongoing content. This email marketing strategy can create brand touchpoints within your prospects’ inboxes on a regular basis.

Can your cash flow support new tactics?

If you or your client are looking for new ways to turn prospects into customers, using digital tactics can help you to connect with a large number of prospects in an efficient amount of time. And thanks to the valuable data they provide, digital tactics are useful for improving prospecting strategies and streamlining your team’s efforts.

However, implementing new tactics and launching strategic campaigns can also mean a need for increased cash flow. Leveraging the power of alternative business funding can give you a much-needed cash flow injection without adding debt to your book of business.

 

Want to learn more about how invoice factoring and alternative funding solutions from Liquid Capital can help? Contact one of our Principals today.

Sales prospecting skills

How to improve your team’s sales prospecting skills

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Even the most seasoned sales teams can benefit from brushing up on their sales prospecting skills. These top tips can help you get started!

sales prospecting skills

Without the right skills in place, sales prospecting in the relationship economy can take a lot of time, money and effort.

Two of the most important areas for improving your team’s sales prospecting skills are making sure they know how to prioritize their prospects and how to connect with prospects in the digital world.

Prioritizing Prospects

Knowing how to prioritize prospects can help ensure your team is spending their time where they’re most likely to see a return on their efforts.

Here are three ways for your sales team to prioritize their prospect list:

1. Prioritize reconnecting with existing or previous customers

If a customer is, or already has, engaged with your company, it’s far simpler to upsell or cross-sell them on a new offer than a cold prospect. They already know, like and trust you – so it’s easier for them to commit to working with you again.

With a customer relationship data platform, you can send a personalized message to the prospect that offers a next step and how you can help.

2. Prioritize businesses that meet the ideal client profile

Make sure your team takes into account characteristics like industry, job title, location and other factors to ensure they’re spending time on prospects that are likely to convert.

They can further prioritize based on prospects who match the characteristics of customers who tend to bring ongoing or repeat business.

3. Prioritize industries and businesses that are on the rise

A company that has received investment funding or is growing each quarter is more likely to work with you than the one taking losses or still in its early stages.

Invest in tools or software so your sales team can do their due diligence and prioritize prospects based on their growth. They can also compare past annual reports to see changes in revenue and general trends.

In addition to these three areas to focus on, sales reps should factor in global trends and events. Your sales reps should be sure to keep up with business news and trends to make sure they’re focusing on industries that are on the rise.

 

Up next: Give your sales team a winning advantage by boosting their relationship-building skills in the Relationship Economy.

grow your goods-based business

3 questions to grow your goods-based business

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If you’re looking to grow your goods-based business (or help your client grow theirs), start by asking these three questions.

grow your goods-based business

Image via Unsplash

Your product inventory levels can often be a good indicator of how well your business is doing, at least in some ways. For instance, if you’re having trouble moving your inventory, it typically shows that you need to adjust your operations. You may need to reduce the items you offer or organize your inventory more efficiently. 

Then again, if you don’t keep enough of the right inventory, you could be missing out on sales and market share. And even if you have the right products and enough inventory, if it isn’t tracked and organized, orders may be lost or delayed, which can affect your bottom line.

To grow your goods-based business — and keep it growing — nothing is more important than managing your inventory. To do that, start by asking yourself these three questions:

1. Are more workers needed?

When you’re having trouble tracking and organizing your inventory, it could be a sign that your staff is maxed out. Overburdening yourself or your workers rarely turns out to be a good thing. The solution? Start looking for qualified workers to add to your team so that your business can continue to grow. 

Another sign that you (or your client) might need more staff is when your business struggles to fulfill orders — that is, you can’t physically get orders out in a timely manner. Obviously, this isn’t going to be good for business either. In this scenario, you may need more employees right away, which can be difficult to accomplish within a short time frame when you rely on traditional staffing agencies or have limited working capital. If this situation sounds familiar, look to on-demand labour staffing companies to quickly find skilled workers and consider other ways to increase your cash flow.

2. Can new technology help?

Technology can make a big difference in certain areas of your business. For example, using smartphone apps like Inventory Now and Shyp can help you to track inventory more efficiently and provide a better delivery/return experience for your customers. 

Make sure you have enough staff scheduled by using an app like QuickBooks Time. This can take much of the grunt work off your hands so you can look forward to more accurate record-keeping, fully staffed operations and more productivity all around.

If you’ve decided to work with a marketing company to boost brand awareness, most likely they’ll point you toward social media. This is one of the best ways to increase interest and engage with your customers. It also gives you a way to offer a heads up when a favourite item is out of stock and when it will be back. When working with a marketing professional, you’ll want to share lots of information, such as photos, infographics, etc. To make short work of this, simply use a PDF file merger to ensure files are easier to share and send.

3. Do I have accurate stock levels?

Keeping the right amount of inventory is one of the greatest challenges of running a goods-based business. The first step is to stay on top of the supply-and-demand trends in your industry. Always look at which items are selling to give you an idea of where the market stands. Anytime you order new or additional items, make sure the reward outweighs the risk. 

Many companies find it beneficial to calculate how much inventory they should carry by using the inventory turnover ratio. In short, this formula can show you the rate at which you’re selling out of stock and reveal the strength of your sales. Moreover, whether the ratio is low or high can tell you whether you have too much or too little inventory.

Funding your inventory management strategy

Managing your inventory is critical when it comes to growing your goods-based business — and you may require more working capital than you currently have available. Once you’ve identified the areas of your inventory management strategy that need updating, you’ll need to determine how to fund the necessary changes. 

That’s where Liquid Capital can help! With our alternative funding solutions, such as invoice factoring or purchase order financing, we help business owners unlock working capital to support their business growth plans.

To learn more about our alternative funding solutions that help power business growth, contact your Liquid Capital Principal.

sales prospecting process

Increase your cash flow with an updated sales prospecting process

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If you’re trying to increase your business’s cash flow, start by reviewing your sales prospecting process.

sales prospecting process

Prospecting, relationships, business growth and cash flow are all closely connected in the relationship economy. 

It’s common knowledge that having meaningful customer relationships can support business growth by generating consistent sales and cultivating loyal customers. In turn, this can create positive cash flow for your business.

Prospecting can also impact your cash flow. If your team has a system to consistently bring qualified prospects into your sales pipeline, you can expect to reliably bring in new customers, which will increase your cash flow. However, if your prospecting process is outdated, you may see your cash flow suffer.

Redefine your ideal prospect for the relationship economy

The first step for finding qualified prospects is defining who they are. This ensures that you and your sales representatives know what you’re looking for in a potential client. By developing a clear set of criteria, you can help your sales reps streamline their efforts and focus their time on prospects who are likely to convert.

Generally speaking, an ideal prospect is someone who sees value in your offer, has the budget to pay, and stands to benefit from the results your business can confidently deliver. 

If you haven’t reviewed your ideal prospect criteria since the pandemic, now is the time to do so. As the relationship economy becomes more prevalent than ever, you may find that who your ideal prospect is and how they want to be sold to has changed.

Begin by examining your historical customer data and consider these questions:

  • Which business or industry has the highest conversion rate? 
  • Which customers have the shortest sales cycles?
  • What are some common attributes ideal customers share? (This may include things like their industry, job title, location, etc.)
  • Which customers have the highest lifetime order value?

By analyzing this data, you’ll gain a clear profile of your ideal prospect’s priorities, buying habits and patterns. You’ll also learn how (or if) the pandemic has changed them.

update your sales process

Update your sales pitch and marketing materials

The next step is to review and update your sales pitch and marketing materials. In today’s relationship economy, buyers are savvier than ever before — and they are demanding a more personal and relationship-driven sales approach.

The pandemic has also increased the demand for virtual meetings, sales videos and easily accessible digital marketing materials.

Every business needs to consider how they can cultivate meaningful relationships with their customers. Customers who enjoy their experience and feel valued will become repeat patrons and help create steady cash flow for your company by telling others about their great experience.

Prospecting and selling need to go beyond a transactional focus. It is now about creating a true feeling of connection in the sales cycle, being responsive and following through when it matters. Though this shift can create a longer sales cycle, by focusing on these pillars you can strengthen bonds and, ultimately, improve your prospecting results.

Don’t let your working capital hold you back

It’s critical that your working capital can support how your prospects want to be sold to, and what your customers expect of ongoing service levels. For example, in today’s economy, offering flexible payment terms can go a long way in establishing a more personalized experience for each customer, or you may need to fund a new digital sales strategy to help support your updated sales prospecting process.

In the case of Ray Bowman, owner of tree clearing company Rayzor Edge Tree Service and a client of Liquid Capital, he discovered that he needed to balance his corporate client’s needs for longer invoice payment terms with his need to consistently pay his contractors. This led him to seek funding beyond traditional bank loans.

By working with Liquid Capital, Bowman leveraged invoice factoring to help strengthen his relationships with his subcontractors, meet his corporate clients’ needs and have the cash flow to support his working capital needs.

Create repeat business

In the relationship economy, every business needs to consider how they can cultivate meaningful relationships with their customers.

Customers who enjoy their experience and feel valued will become repeat patrons and help create steady cash flow. And it all begins with making sure your sales team is doubling down on creating long-term relationships with customers from the moment they become a prospect.

Up next: How to improve your team’s sales prospecting skills

business grants

How to access funding through business grants

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Exploring how to access business grants, with examples of interesting grant options in the U.S. and Canada.

business grants

As a business owner, your demand for working capital can be met through multiple funding solutions. One of these routes to accessing capital is through business grants.

Grants exist with local governments as well as private foundations. They can include cash grants, equity grants, interest-free loans, microfinancing and more, and many don’t need to be paid back, making it an attractive option. However, competition for grants can be high, and the grant writing process can be quite intensive. So it’s important to have enough time to focus on submitting a solid application—and you may want to even get expert help with your submission.

Grants to help growing businesses

There are so many different grants available. However, some are only available in specific regions, for certain industries or types of businesses. Be sure to read the details about each grant to confirm if your business will qualify.

Here are interesting grants and associations as an example of what’s out there:

U.S. Business Grants

Black Founder Grant

The Black Founder Startup Grant program provides grants of up to $10,000 to black or multiracial women and non-binary businesspeople. The program accepts new applicants on an ongoing basis and is open to any entrepreneur with a legally registered business.

National Association for the Self-Employed (NASE) Growth Grants

Since 2006, the NASE has distributed more than $1,000,000 in new funding to its members. They have grants to assist with training, education marketing and more. Note that you must be a member for 90 days before you are able to apply.

FedEx Small Business Grant Startup

FedEx offers grants through contests that are designed to help support small businesses around the United States. FedEx also has a lot of great resources for small businesses to utilize throughout their startup journey.

SBIR.gov

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are programs that encourage small businesses to engage in Research and Development with the potential for commercialization. SBIR and STTR offer grant money for businesses through their awards program.

Small business grants and applications

Canadian Business Grants

Government of Canada

A good place to start learning more about the grant process and details you’ll need to pull together is the Government of Canada Business grants and financing portal. From their Business Benefits Finder, you’ll see what opportunities exist for your organization.

Innovate BC Hiring, Mentorship and Research Grants

This provincial organization offers multiple grants to help growing businesses including:

  • Hiring grants for hiring young people to subsidize their salaries and build up the pool of talent.
  • Mentorship grants for small and medium-sized tech companies to help grow their businesses.
  • Research grants to commercialize a special project.

Local Chambers of Commerce

Whether you’re already a member of a local Chamber of Commerce or not, they may provide opportunities to apply for grants. For example, The Winnipeg Chamber of Commerce offers grants of up to $5,000 “to help small businesses offset the cost of expenses to reopen safely or adopt digital technologies to move more of their business online.”

How do I find more grants?

There are even more funding opportunities out there. However, it can be difficult to find these grants on your own. So how do you go about finding what’s available and if you qualify?

Thankfully, there are great resources online that make it easier for entrepreneurs to access all the information they need to know when it comes to business grants. Here are some great places you can get started:

Funding to supplement grants

How will you know if your business qualifies for grants? How much funding are you eligible for from a grant program? And how does the grant writing process work?

These are all questions that come up when small businesses consider applying for grants.

Fortunately, there are some great resources online that make it easier for entrepreneurs to access all the information they need to know when it comes to business grants. Hopefully, this helps you get started on the journey to accessing the right funding to grow your business.

If you’re looking for additional funding to supplement grants for your business, we have options. Please reach out to us and we’ll explain how our funding such as invoice factoring can help you.

top articles for business professionals

Year in review 2021: Our top articles for business professionals

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From creating long-lasting business relationships to harnessing the benefits of invoice factoring and alternative funding, these are some of our top articles for business professionals from the past year.

top articles for business professionals

As another year wraps up, you may be planning to take advantage of new opportunities that lie ahead in 2022. To help tackle the road ahead, you can learn from the journey to date.

This year, some of our most popular articles centered around building a strong team and lasting relationships that are the foundation of a true partnership. In addition, articles about finding ways to face financial obstacles head-on, preparing to take advantage of opportunities when they present themselves unexpectedly, and harnessing the many benefits of alternative funding were popular.

These topics have been the building blocks for resilience and adaptability, which are essential qualities for successful companies during uncertain times. And with a year filled with many ups and downs, being a step ahead with enough cash flow has been the name of the game. 

Now, keep reading for our 2021 list of top articles for business professionals!

 

Future of Business Funding

What is the future of business funding?

The pandemic has changed the way businesses operate — including the finance industry. Some financial institutions have become more conscious of consumers and businesses during the past year and have pivoted to offer greater flexibility, support and leniency to borrowers. However, other businesses have experienced the opposite — with greater challenges accessing capital.

Read more now
pinpoint amazing funding companies

How do you pinpoint amazing funding companies? 

What do you look for in a lender? You’ll take the obvious into account — such as their ability to provide capital. But how often do you establish new relationships based on a human-centric approach? If you’re looking for a true funding partner, look for these characteristics.

Read more now
turn prospects into customers

7 ways to turn prospects into customers

Developing lasting relationships — and ecstatic clients — is the holy grail of small and medium-sized businesses. While building a customer base from scratch is hard, with the right strategies, you can turn a snowball of strangers into an avalanche of loyal clients pretty quickly.

Read more now
CFOs can fend off uncertainty

CFOs can fend off uncertainty

With so much instability, economic and financial challenges influenced by an ongoing pandemic, it can feel downright impossible to lead a business. At the same time, some leaders have unlocked secrets to persevering, regardless of the many challenges created in the past year. Here’s how C-levels can adapt and lead their teams to the other side.

Read more now
Medal-winning ways to leverage invoice factoring

Medal-winning ways to leverage invoice factoring

Surviving the past year has been like winning an Olympic gold medal for most business owners. Even under normal circumstances, running a company is like running a marathon, but it takes another level of determination, grit, perseverance and nerves of steel during an international health crisis. Here’s how to leverage factoring to stand on top of the business podium.

Read more now
When bank loans and early payment discounts let you down

When bank loans and early payment discounts let you down

When a business is experiencing a lack of sufficient cash flow, taking out a bank loan and offering clients early payment discounts are two common tactics used to fill the gaps. But there’s another solution that could be a better strategic decision, and it can provide even more than just cash flow…

Read more now

If you or your client are looking for new ways to fund business growth, contact your Liquid Capital Principal today!

business plan

Developing a business plan for your new venture

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Do you have an idea to evolve your business or maybe even starting something brand new? Turning your vision into a reality requires developing a business plan. Here’s how to get started.

developing a business plan
Image via Unsplash

Many people are waiting for all the stars to align before taking the next leap in their business or starting an entirely  new company. Because of that hesitation, they never get around to fulfilling their dreams. But by getting rolling on developing your business plan, you can turn your dream into a reality faster. 

In 2022, industries will continue to shift in new ways, and now may be the perfect time to take your project to the next level. To get started, it’s important to know what is involved in venturing into new territory or starting a business, and that’s where a business plan comes in. 

Why is developing a business plan so important?

A business plan is a formal document that provides the roadmap for your company. It can help you navigate through tough decisions and can help you manage any challenges that may come your way. It will also help you stay focused on your end goal as you grow your business. And if you are starting a completely new venture, it’s essential to have one in place before applying for funding or securing partners. 

To create a great business plan — whether for your startup, scaling business or mature enterprise — you’ll want to start with these steps:

Step One: Define your business goals

The first step in creating your business plan is determining the direction of your business (if you’re evolving into new territory) or what kind of company you want to start — along with your overall goals. For example, will you run a physical store, or do you prefer an online business? Do you want to sell a specific product or focus on services? Maybe you already have a hobby that you want to turn into a business, or you have an idea of an innovation you can bring to the market?

Once you define your ultimate goals, you’ll be able to start thinking about how you want to achieve those goals.

Step Two: Evaluate your business skills and knowledge

Many new business owners find it helpful to take classes in business to better grasp the intricacies of running a business. Online universities offer convenient solutions for those seeking to learn more about leadership, strategy, operations and general management.

If there are some areas of running a business that you aren’t well-versed in, you’ll want to leverage outside help or software that fills in the gaps. For example, if you’ve never managed payroll, software or apps can help. Many of these services provide same-day direct deposit, automation for payroll and payroll taxes, and time tracking.

Tired of waiting 90 days for payment? Try this instead.

Step Three: Define the structure of your business

Next, you’ll want to clearly define the best business structure for your venture. Incorporating rather than operating as a sole proprietorship does have its benefits. For example, if you form an LLC, you could be eligible for certain tax incentives, tax credits and business incentives. 

You will need a clear idea of what products you will sell at the time of the company launch and how your offering will evolve with time to keep up with industry trends and client demands. You will also need to know if you will be selling directly to consumers, acting as a wholesaler, or offering a B2B service for other businesses.

Step Four: Get your financials in order

An important part of creating a business plan is planning out the financing aspect. What cost structure will allow you to create your product or service and have it reach your final consumer? This would include all the physical production costs, supply chain, marketing, and personnel costs for your company structure.

Once you have all of the above information, you can bring it all together. Make financial projections of what your sales and profits would look like over the first few years and what startup costs and cash flow you need to finance to start the business.

Access to funding will be crucial in getting your venture up and running. Invoice factoring can help build working capital. 

Step Five: Research the market

The final step in creating a business plan is to research the competition. This will help you to avoid starting an unnecessary or unprofitable venture. Think of ways that make your company unique from other similar companies who are also competing for clients in this space. Answering the following questions will help guide your research:

  • What is different about your products and services that only you can provide?
  • Based on your product, costs, customer target, and competition, what would be the optimal price points for each of your products or services? 
  • How are you going to reach your consumers and let them know about your products? 

There are many resources online today that can help you establish a solid business plan. And once you have it on paper, you will see that it makes your vision come to life and gives you a base document that you can work with to approach investors or potential stakeholders in your business.

 

Up next: Create a smart digital marketing plan on a budget