Businesses live and die by the state of their finances. When they’re in the green, there’s little else to worry about other than to remain present — it’s when they’re in the red when things become a whole lot trickier.
If you feel that your company’s financial standing could do with some strengthening, if only by just a little, then you should take heed of the following advice. Here are three things you can do to improve your business’s financial position:
Master the art of Six Sigma
Since its inception way back in 1986, the Six Sigma methodology has turned around the financial fortunes of thousands of businesses all around the world. It has done so through the way it teaches its students how to both measure and quantify financial benefits.
In order to wield the power of this proven business-improvement process in a bid to improve your business’s financial position, you, yourself need to become a Six Sigma student. By going on a Six Sigma training and certification course, you would be able to master the art of financial management and risk assessment. As a result, you would be able to have a better understanding of what is worth spending on in your market and in the climate of the day, and what isn’t.
Recover any outstanding debts
You’re never going to solidify your business’s financial position if you don’t recover all of your outstanding debts, even the cheapest ones. It’s about creating a precedence and reputation for yourself just as much as it is about receiving the payment owed to you — if external forces know that they can get away with not paying you in full, on time, or at all, they’ll continue to take advantage of you.
If you don’t have the time to recover all of your outstanding debts, you should consider outsourcing the job to a factoring company. A factor would pay you for your invoice and then take it upon themselves to chase your rogue invoice down.
Reduce your expenses
You should take a long, hard look at your expenses before deciding which expenses can be reduced or removed entirely. When it comes to general expense reduction, you could:
If it comes to it, you shouldn’t be afraid to sell your unwanted assets, either. By doing so, you will drum up some extra cash and either create more storage space for yourself or reduce your storage costs.
If you choose to improve anything about your business in 2019, let it be its financial position. If you want to do this without raising your prices, you should definitely consider putting the above advice into practice. You should master the art of Six Sigma, you should resolve to recover any debt that is owed to you, and you should reduce your expenses wherever and whenever you can.