7 ESSENTIAL HABITS THAT WILL MAKE YOUR SMALL BUSINESS FINANCIALLY STRONG
One of the toughest challenges small business owners face is keeping their business afloat.
Managing finances and distributing money wisely are what make or break a small business.
Success in building and managing a profitable small business relies on effective habits the business owner instills in the business culture and the daily operational process.
These powerful habits and routines if done consistently. They will not only ensure that the business will have excess cash and become financially robust, but will also give it a competitive edge for competing in an aggressive unforgiving marketplace.
Here is a list of 7 of the most effective habits to build and maintain a financially strong small business.
1. Check and Optimize for Business Cash Flow and Costs Every Day
The reason behind looking at your numbers dashboard every day is that it allows you to have a clear insight into what’s going on underneath the surface level of your business.
It’s a wise idea to know how much you are spending and how much you are generating in revenue, what is your cash flow, where the business is overspending, and what products drive the most sales.
When you don’t know, your daily number is like walking in a dark room with no directions.
You are clueless about whether you are making or losing money, and you do not know how much you can spend on marketing or if you can pay your staff and suppliers on time.
Make sure that checking your daily cash flow comes at the top of your list.
2. Consistently Promoting Your brand Products
Even if you create the best products/services, you can fail in business without a consistent and effective marketing effort.
Make it your priority to invest in marketing. It’s the mighty mother of all successful businesses, and you must not ignore or dismiss it or dare to give it your back.
Marketing is the immune system of your business. It strengthens your exposure in the marketplace, generates new leads and attracts them to your funnel, deepens the relationship with existing customers, and if marketing is done right, oh my… it can generate a ton of cash and buzz for your business.
Make it your priority to promote your products and brand all the time. Try to mix online and offline marketing. Perhaps try something new, such as working with social media influencers to expand your brand awareness and reach.
Hire a freelancer on Fiverr to set up and run Facebook, Instagram, or Google PPC ads.
If you want to make money in business, you got to promote, promote, and promote more!
3. Actively Establishing Partnerships with Distributors and Sellers
To pass financial struggles in business, you got to expand your network of sellers, widen your product distribution to a new market, and collaborate with different partners to market and sell your products.
Make it your priority to always connect with new sellers, reach different local markets, and join trade shows and events.
If for any reason you can’t or don’t like to do it yourself, hire a sales representative and offer them a basic salary, besides a bonus, whenever they establish a partnership and make a sale.
4. Actively Seeking Customers Reviews, Feedback, and Referrals
A long time ago, my grandma once said:
If you want to generate more sales, open your ears wide and listen closely and carefully to what clients say about your product and brand reputation. After all, they are the ones buying your products/services, not you or your employees.
Oh, my grandma, you were so true… God bless you in heaven, Amin!
That’s why it’s crucial to give extra attention to your customers’ reviews. Also, make it a habit to send monthly surveys and ask clients for feedback about what they like and dislike about your product.
Meanwhile, don’t shy away from asking for testimonials and referrals if you have done a great job. It adds credibility and social proof to your business.
Remember that taking care of your customers’ reviews and feedback is like housekeeping. Get lazy with it and your brand reputation gets dirty and messed up all across the marketplace.
5. Actively Sending Customers a Thank-You Letter and Gifts
Do you know it costs you up to 5x more to onboard new clients compared to keeping existing clients? Wait, Woot, is that for real?
Yup, you heard that right. My friend, you must always bribe your customers so they have no other choice but to fall in love with your brand and ignore everyone else.
Sending a personalized thank-you letter or even sharing a cute or gentle small gift can seriously get them in tears and hooked to be in love with your business.
For starters, they will see this gesture as a token of gratitude and you appreciate them.
It also triggers their “love” hormones and makes them triple think before they try to cheat on your brand and shop somewhere else.
In addition, with this type of unusual surprise, you 10X your customers’ experience with minimal effort.
In return, they come back for more purchases and that will add extra money to your bank account and goodwill to your brand reputation with little marketing cost.
Giving your customers extra love will make them feel like members of your business family.
This will encourage them to fight hard for your brand when a lousy customer badmouths your quality, or a competitor has developed the nerve to mess up and ruin your reputation.
And in case, god forbid, somehow you mistakenly messed up somewhere, they will feel the urge to notify you and recommend solutions on how to fix or deal with the situation.
With this small and simple habit, you get your business a strong shield of loyal customers wrapped around your brand reputation, protecting it from a lousy marketplace.
6. Consistently Improving the Customers’ Experience
It’s allllll about the customers’ experience. Write that down and stick it on your screen!
All businesses can offer similar products and services, but what makes a customer choose a brand from the other is how the brand makes them feel.
Even if your customers are happy right now with what you offer, don’t take them for granted. They can easily get bored after a few dates and once the romance is finished, poof, they are gone somewhere else.
Make it your priority to look at the latest trends and what keeps customers excited. Study other brands from different industries, locations, or countries around the globe.
Check consistently for fresh and exciting ideas on Pinterest, Instagram, and magazines, and dig for things that will keep the romance going between your customers and your brand.
7. Establish an Emergency Fund
A great way to ensure you don’t lack money when the economy goes south is to get into the habit of saving extra money.
Keeping aside 10% of your monthly profit is a good starting point.
Secure six months of operational expenses in your business bank account and keep it hidden away from your sight as an emergency fund.
Not all financial decisions will bring a glorious return on investment. Sometimes, you will end up risking stuff a bit. In other cases, the economy will go blue! Who knows?
This is pretty normal in business, however, you seldom see a legendary brand such as Ferrari or Gucci go bankrupt and disappear during a hit of a poor economy.
It’s because, throughout history, these businesses have developed the stamina and skills to deal with every unpleasant situation that might put them at the risk of going bankrupt. One of those habits is being financially secured.
Setting an emergency fund also will allow you to experiment and invest in new ideas without having to worry about the expenses of running your business.
Save some money when it’s a rainy day, one day or the other you might need it for a dry day! — Grandma
Now that I have told you about the best habits which can make your business financially robust. It’s your turn to implement them into your business routines.
You don’t have to apply all of them right away. Do it one habit at a time.
If you manage a group of staff, consult with your team member and discuss methods to integrate those habits into your business system.
Last, remember that successful small businesses are profitable for a reason, and they hide the reason for their success in their daily routines and habits.
Implement those habits into your business and watch your profit skyrocket!
If you’re looking for a great way to learn how to build a profitable small business, learn these great actionable tactics which give you fast and proven results to boost your business profit!