As the business year rolls over and we finally get a tally on the booms and bust of seasons from the previous year it is time to re-assess the game plan and see where improvements can be made. One of the most important business planning tips is to keep as detailed financial reports as possible. No cost is too small and everything needs to be done to get maximum profit margin squeezed from every sale as well as getting rid of anything that does no lead to higher profits.
Better Business Planning
Clients, suppliers, and competitors are the three most important groups to a business and one can never have too much information on them. This year make it a goal to find out more about these groups by asking them directly or even spending a bit of time searching on the internet. That research might lead to better deals with suppliers or possible diamonds-in-the-rough deals created from a volatile market. Finding out the acute needs of any of these groups could possibly lead you into a new niche market that you can benefit from or get your profits in the black before high season ever begins.
During the peak season of sales in your market consider demanding payments up front on all orders or at least the large ones. This peak season practice is very common and will keep your accounts in the black as well as decrease the risk of defaults on critical orders. During low season it will be wiser to have a more giving nature and possibly reach out to customers and suppliers with gifts and greetings. Reaching out when others do no will have a positive effect.
Business planning is not only about revenues, cost and profits but also about what to do with those profits. Any unutilized capital should be placed in high interest bearing accounts. That capital should also be readily available to cover unexpected cost and having a good relationship with a lender is a crucial need. Taking advantages of lending services like interest free periods on loans can make all the difference in a pinch.
Using short term lending wisely like the services from ALC Commercial can help a business make it through a stormy period and make it out alive and thriving on the other side. Having a direct line to capital during high season can be one of the best business planning methods.