Sin categorizar Archives - Página 7 de 17

How can invoice factoring companies help fund your growth?

abril 12, 2022/en Sin categorizar, Factoring/por Mark Glucki

Running a business is stressful. Funding your business growth shouldn’t be. Read how invoice factoring companies can help you achieve your goals!

Being in business means having to wear many hats and juggle a variety of challenges. The very last thing a business owner wants to experience is a cash flow problem that curtails business operations.

Cash flow and funding issues can arise when outstanding receivables aren’t paid in a timely manner, inventory levels need replenishing, inflation affects costs and even sudden growth opportunities or shifting market conditions arise unexpectedly. In these cases, how can businesses reliably fund cash flow in a difficult economic environment?

With business getting back to normal, owners and leaders may also be faced with the “good problems” of increased sales, but with new or different cash flow issues. As accounts grow, so can outstanding receivables. Unfortunately, this limits a business’s working capital, as you pay out expenses before you’ve collected on your invoices.

The benefits of invoice factoring

First off, what is invoice factoring? Invoice factoring is a type of financing where you “sell” a portion of (or maybe all of) your company’s outstanding receivables to a third party. Why?

The benefits of invoice factoring are as follows:

A factoring company pays you most of the invoiced amount immediately – thereby creating revenue and cash flow stability.
Forecasting and planning can be more accurate because you now have a better sense of your assets.
The invoice factoring company takes on the responsibility of collecting payment from your customers directly.
A struggling business may have a better chance of staying afloat due to better cash flow.
Businesses can use invoice factoring as part of their cash flow management toolkit to build inventory or pay for other immediate needs.
Often, invoice factoring is cheaper and easier to acquire than a traditional loan. This makes it better for short-term funding needs and reduces the headaches of debt management.
Increasing immediate cash flow allows you to maintain a better credit score by paying bills on time.
Invoice factoring companies can enhance your business success and your growth potential.

When opportunity knocks, be ready to answer the door

As a business owner, you need money when you need it. You can’t always anticipate growth opportunities or the direction your business will take despite your best efforts.

Take the case of Global Aviation. The company, which provides airline staffing services such as aircraft detailing, baggage and load control services, needed additional financing as expansion grew more rapidly than anticipated.

Traditional sources of capital were unavailable, and Liquid Capital was able to step in to help them access over $40 million of funding since 2016.

“Liquid Capital was instrumental in listening to us and coming up with a game plan on how we could repay our facility balance and right side the operations.”
Carm Borg, President and CEO of Global Aviation

A similar situation occurred for Rayzor Edge Tree Service as it expanded into commercial contracts. By helping the company better understand the benefits of invoice factoring, Rayzor Edge Tree Service has been able to double sales and strengthen its business relationships.

“As a small business owner, it’s helpful to know someone’s got your back because you’re so reliant on yourself for so many aspects of running the business. Having somebody that I can turn to for advice is worth a lot.”
Ray Bowman, Owner and President, Rayzor Edge Tree Service

Other benefits of invoice factoring

Did you know that Liquid Capital’s business model makes it even more advantageous for businesses considering this option?

What makes Liquid Capital different from other invoice factoring companies:

We develop relationships with clients beyond a simple transaction. We’re business owners ourselves, so we understand the pain points owners experience running their companies.
Our business model allows clients to control how they engage with our business — and we can provide flexible funding when you need it.
Our clients do not get tied into long-term contracts, termination fees or minimums.
By joining our referral program, you can, in turn, help your clients access quick and flexible funding when traditional funding options aren’t available. If you’re a commercial lender, BDO or other funding professional, reach out to learn more.

Ultimately, all businesses want high-value service that meets their needs. Liquid Capital does that by taking the time to build a structure around the client’s individual needs – which leads to freedom and the ability to choose.

By giving clients the control they desire, Liquid Capital can keep costs down for clients and provide a best-in-class service in a timely and efficient manner.

Up next: Are invoice factoring services right for your business?

Finding leads and qualified prospects in the relationship economy

marzo 23, 2022/en Biz Tips, Sin categorizar/por Mark Glucki

Finding qualified leads starts with having reliable sources. Here’s where to start looking!

There are lots of online directories, tools and resources that can help provide insightful prospect data. But with so many options available, it may be hard to know where to start. For busy business owners, it can be particularly important to maximize the time spent finding leads.

Here are five places you can source qualified prospects for your pipeline.

1. LinkedIn Sales Navigator

LinkedIn Sales Navigator uses the power of its 500-million-member network to help sales professionals find and build relationships with prospects and clients.

They have advanced search tools like job title, industry, location, and more to help your team find and connect with ideal prospects through social selling. Best of all, Sales Navigator can be connected with many CRMS (such as HubSpot) giving you an extra layer of insights into your existing customers and potential leads.

2. Dedicated prospecting platforms

There are plenty of paid prospecting tools that can help you secure decision-makers’ email addresses, phone numbers, job titles and so much more. Tools like VoilaNorbert and ZoomInfo can help your sales reps get accurate contact info and reach your potential prospects quicker.

The great thing about these prospecting tools is that they’re designed to support your sales reps in the relationship economy. They usually have features to help start conversations, schedule follow-ups, track conversions and more.

3. Twitter

Did you know that a report by Statista showed that 67% of B2B businesses use Twitter as a digital marketing tool?

Beyond being a helpful ticker for industry news, Twitter has an excellent advanced search feature.

It allows you to search for keywords, exact phrases or exclude certain words from your search. You can also search for high-intent hashtags that might reflect interest in your company’s area of expertise, such as #productnames, #manufacturinggoods, #events and #geographiclocations. (Naturally, replace these words with hashtags that match your business opportunities.)

4. Job boards

When a company is recruiting for a new role, it might signal that they’re investing in that general area or department. For example, a company looking for a new Head of Accounting may be searching for funding, grants or loans.

By searching job boards, your team can look for listings that match your buyer persona job titles. From there, you can reach out to the role’s hiring manager, who is likely a decision-maker.

5. Industry publications, networks and associations

Niche trade events and industry associations may be filled with members that fit your ideal client profile. These organizations often list their members, partners, affiliates and other stakeholders on their website. These directories are a quick way to find potential prospects.

To find these memberships and associations, run a quick Google search such as «best [industry] membership.» You’ll likely get results for nationwide associations, events and organizations.

No matter where you turn to for leads, the most important part of finding great leads is to have a solid sales prospecting process in place.

Up next: Updating your sales prospecting process for the relationship economy

Siete etapas para elaborar su presupuesto de flujo de caja

marzo 21, 2022/en Sin categorizar/por Liquid Capital

Para que las empresas logren éxito y crecimiento, necesitan contar con un adecuado flujo de caja para poder cumplir con obligaciones tales como pagos de salarios, de contratistas y de proveedores, y préstamos e reinversión en el negocio.

Como se explicó en la primera parte, un presupuesto de flujo de caja le muestra exactamente cuánto dinero entra y sale de las cuentas de la empresa.

A continuación, presentamos las etapas que debe seguir para preparar su propio presupuesto de flujo de caja:

1. Consiga la herramienta adecuada

Si desea actuar ahora mismo, es posible que ya cuente con una herramienta o software de presupuesto que le pueda ayudar a preparar sus previsiones de flujo de caja. Si no es así, un punto de partida directo es el modelo de flujo de caja de Excel. Si usted tiene un contador o tenedor de libros, es posible que este ya haya preparado un estado de flujo de caja anteriormente y pueda recomendarle un formato según el modelo de sus reportes financieros anteriores.

2. Defina un plazo

A menudo, los presupuestos de flujo de caja se preparan con seis o doce meses completos de antelación. Dependiendo de si usted está preparando este estado para usted o con el objetivo de conseguir financiamiento, establezca su plazo y prepárese a reunir toda la información necesaria para dicho plazo.

Muchas empresas elaboran sus previsiones con plazos mensuales, pero para algunas puede ser necesario conocer su flujo de caja con mayor frecuencia, con plazos semanales o bisemanales, por ejemplo.

3. Prepare una previsión de ventas

¿Qué tantos ingresos espera atraer cada mes? Para saberlo, puede basarse en los meses o años pasados o en las previsiones de ventas. Luego, establezca una previsión de ventas para cada mes del año. Recuerde que habrá fluctuaciones de acuerdo con las ventas reales y los cambios en el mercado, además de nuevos clientes en su lista.

4. Proyecte las entradas de efectivo

Es decir, sus «ingresos», los cuales incluyen todas las ventas proyectadas, tanto las ventas pagadas en efectivo como aquellas a clientes que pagan a crédito.

Tenga en cuenta también los plazos de pago que usted ofrece a sus clientes, ya que sus ingresos de efectivo se harán después de la fecha de venta real. Por ejemplo, si usted hace ventas por $10.000 el 15 de enero, con un plazo de 30 días, entonces su proyección de entrada de este efectivo debe ser de $10.000 en febrero. Sin embargo, si sus clientes pagan tarde por lo general, es posible que usted quiera ser más conservador y proyectar esa entrada para el mes de marzo.

5. Proyecte sus salidas de efectivo

Es decir, sus «egresos», los cuales incluyen sus gastos fijos basados en fechas de pago programadas al igual que cualquier gasto variable. No olvide hacer una proyección de gastos como planes de compra de nuevos equipos o aumento del personal. Asegúrese de que estos estén programados en el mes correcto, lo cual puede depender de los plazos de pago y del momento en el que realmente se espere el pago.

Algunos de los principales egresos son:

Las compras
La nómina
Los útiles de oficina
Las reparaciones de los inmuebles y el mantenimiento de los equipos
La publicidad y el mercadeo
La renta y los servicios
El seguro
Los pagos de préstamos
Las adquisiciones
Cualquier retiro hecho por los dueños

6. Calcule el balance de efectivo

Aquí es en dónde se hace el cálculo. Si utiliza un software como Excel, cree una fórmula para adicionar todos sus ingresos de efectivo de cada mes y, luego, sus egresos de efectivo de cada mes. La diferencia será su balance de efectivo mensual, es decir su efectivo disponible.

Su efectivo disponible debe también incluir el saldo de su cuenta bancaria, de su caja menor y de cualquier otra cuenta corriente que usted tenga. Sus amigas son las cifras positivas.

7. Establezca un balance de flujo de caja mínimo

Determine cuánto efectivo necesitará tener a la mano cada mes. Empiece por mirra la cantidad mínima necesaria para cubrir todos sus gastos y asegurarse de que no quedará con un déficit de flujo de caja. Luego tenga en cuenta las oportunidades de expansión, las reinversiones en su empresa y otros gastos variables para incluirlos en su presupuesto.

Sea proactivo y evite déficits futuros.

Una vez que sepa cuánto dinero necesita para cumplir con sus obligaciones financieras mínimas y cúanto necesitará para su expansión futura, revise sus previsiones mensuales. Si hay meses en los que se queda corto, deberá mostrarse proactivo.

Es hora de tomar medidas en el asunto y encontrar una forma de obtener capital. Si su presupuesto de flujo de caja revela que su empresa se puede quedar corta de recursos en los próximos meses, el factoraje de facturas y otras soluciones de financiamiento alternativo pueden ayudarle.

Top 4 things to consider when choosing your invoice factoring partner

marzo 3, 2022/en Sin categorizar, Factoring/por Mark Glucki

If you’ve decided that invoice factoring is the solution for your cash flow needs, here are the first 4 things you should consider when choosing a factoring partner.

When your business is poised for a major growth opportunity or you’re about to make a significant operating decision (like purchasing new equipment), your cash flow is vital. But if capital is low, the numbers may not be there to support your next move. To avoid cash flow challenges and potential missed opportunities, many businesses turn to invoice factoring.

Also called accounts receivable factoring, this is when you sell your unpaid invoices to a third party (called a factor), who pays you up front for the invoice minus a small fee. The factor will later collect the payment from your customer directly, which saves you the hassle while getting you cash now.

Once you’ve decided that invoice factoring is the solution to meet your cash flow needs, it’s time to choose the right partner for the task.

To help you in this effort, here are the top four things to consider when choosing an invoice factoring partner:

1. The type of factoring service offered

There are two major paths that factoring generally takes:

Recourse: Where the customer assumes the risk for and guarantees the invoices. If the client of the customer fails to pay, the customer is responsible for buying back the invoices.
Non-recourse: Where the factor assumes the risk and guarantees the invoice. This type of factoring is less common and is generally associated with a higher fee structure.

2. The terms and rates of their services

It’s ideal to find a partner that can create agreements similar to those structured at a bank, including features such as 30-day cancellation clauses, giving you a way out if needed.

In terms of fees, even if the upfront rate is low there can be a long list of add-ons that ultimately drive the price much higher; with charges for things like phone calls or ‘same day funding.’

No matter what the terms are, transparency should be the tone for the entire transaction. If a potential partner is not 100% clear with you about what will happen and how, it’s time to move on to the next candidate.

3. Industry experience and depth of knowledge

Given the intricacies and risks associated with different industries, it’s important to find a factoring partner that is experienced in your particular industry. In addition to this industry-specific knowledge, having a team that has been in business for many years can also help to avoid any pitfalls that a less practiced company may inadvertently encounter.

“Liquid Capital is more than just a source of money. My Principal calls regularly, gives me his perspective and shows me my financial trends so we can discuss what next steps make sense for my business.”

Dave Kip, CEO of Best Broadcast

4. Service: Speed, availability, flexibility

Factoring, above all else, is a customer-centric activity. So find a partner who is responsive to your needs and is able to deliver high-quality results quickly — within 24 hours of approval ideally.

Given the scalability of factoring, as long as you choose a partner with access to enough capital, you’ll have a funding solution that can grow as big as your goals. For one of our clients, Ray Bowman, using invoice factoring allowed him to grow his business faster than he could have with traditional financing.

Factoring is one of the best alternatives to traditional banking mechanisms, bringing cash flow to growing businesses when it is needed most. Choosing the right partner for invoice factoring means looking beyond the basic rates – which can be misleading. Ultimately, choosing the right invoice factoring partner for your business will have important consequences, so it’s worth taking the time to ask the right questions.

Learn all the critical questions you should ask any invoice factoring provider in the Invoice Factoring Guidebook

Access the complete guide.

5 tips to reduce business debt

febrero 20, 2022/en Biz Tips, Sin categorizar/por Lucy Reed, Guest Author

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:

Use a transaction API to gather data on the last 24 months of expenses.
Calculate your income from all sources.
List variable costs.
Add up fixed expenses.
Estimate additional spending.
Analyze cash flow.
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.

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

Build meaningful relationships to fuel long-term business growth

febrero 18, 2022/en Biz Tips, Sin categorizar/por Sarah Schoepfer

When you and your team consistently create meaningful relationships with clients, it can lead to 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.

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 to reach new clients

febrero 10, 2022/en Biz Tips, Sin categorizar/por Sarah Schoepfer

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

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 in the digital 2.0 world

febrero 3, 2022/en Biz Tips, Sin categorizar/por Sarah Schoepfer

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

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.

How to improve your team’s sales prospecting skills

enero 28, 2022/en Biz Tips, Sin categorizar/por Mark Glucki

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

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.

3 questions to grow your goods-based business

enero 21, 2022/en Biz Tips, Sin categorizar/por Sarah Schoepfer

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

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.