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A GUIDE TO BETTERING YOUR BUSINESS IN 2019
Every business has an opportunity to make improvements as they continue to operate and grow. There are probably changes you can make to improve everything from client communications to financial management even if your enterprise continues to perform better than expected. Consider these tips for practical improvement without breaking the bank or interrupting workflow and operations.
Do you have heavy equipment that is not running at optimal levels? Do your employees spend too much time managing payroll and accounts receivable due to limited software availability? Leaving a problem unresolved due to cost can lead to reduced productivity or increased spending in other areas over time. It's important to recognize that, as Business2Community pointed out, even small issues can snowball and become major ones.
You should track problems and concerns as they arise. Remember that you don't always need to address problems as soon as they happen. Compare the cost of fixing the problem versus the negative impact on your business if it goes unresolved - both in terms of productivity and financially. If you’re unsure of where to begin, prioritize the problems need to be addressed first.
Construction, forestry and many similar industries involve a lot of hard work. Thus, it's especially important to understand what motivates your employees and how to incentivize them to achieve their goals. Good morale translates to a workforce that feels respected and valued. It also means better employee performance on the job - which keeps clients happy and helps your business grow. Motivated workers are more dependable and reliable. While there are no guarantees, you can potentially reduce turnover when your employees enjoy working for you.
Listening to your staff and regularly soliciting genuine feedback from them can be a cost-effective approach to understanding their attitudes and preventing potential problems in the future. The Balance suggested providing both criticism and praise on a regular basis, as opposed to saving that information for scheduled reviews. It makes it easier for your staff to adjust and maintains consistent lines of communication. In the same vein, you can also look for opportunities to reward employees when appropriate. Whether it's a few hours off at the end of the workweek when a job finishes ahead of time or buying lunch for workers during a particularly difficult project, there are ways to spend a modest amount to boost employee satisfaction.
Revenue is vital for your business, there's no way around it. You can have efficient workflows, motivated staff and reliable equipment, but if your clients don't pay, it can be difficult to keep the lights on. That's why it's so important to have an effective strategy for collecting and managing your business’ accounts receivable. Everything from payroll to accounts payable flows from your ability to collect and then use that revenue. A key component of an effective accounts receivable plan is establishing a standard policy and process for accepting payments. Certain elements may vary by industry, such as the accepted delay in payment, but a consistent workflow can go a long way for your business.
Create guidelines for contacting clients, and don't be afraid to reach out before an invoice is past due. A quick reminder call can reduce the wait time for the funds. You might also consider offering a small discount for early payment, depending on the specifics of your business and how valuable prompt payment is for you. A dollar today is worth more than a dollar tomorrow due to your ability to use it in investments, accrue interest or pay off debt before a late fee or penalty comes due.
Businesses that rely on heavy equipment for day-to-day operations need a cost-effective approach to acquiring and using a wide variety of machinery. Purchasing equipment outright has some undeniable benefits, but it also carries an upfront cost. Business owners that don't want to dedicate a significant amount of available capital to immediate ownership have some powerful alternatives. Cat Financial provides a variety of financing and leasing options that make monthly payments far more manageable, as well as loans, working capital and revolving lines of credit that help your company be as financially flexible as possible. Get in touch with us today to learn more!
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