Where To Invest When Your Business Is Struggling
By The Meet Hugo Team / June 20, 2019
A business is always subject to various obstacles and challenges, whether it’s in the early years of trading or responding to changes in today’s ever-evolving market. Whilst all businesses can face struggles from time to time, there’s a number of tried and tested methods to keep cash flow moving positively.
Look for the Low-Hanging Fruit
An initial thing you can do is examine what’s worked well for your business in the past. By low hanging fruit, we’re typically referring to something that’s both easy to promote and easy to execute. If you measure the revenue streams coming into your business, you may find that these smaller, quicker projects may have served as a real bolster to your business in the past.
Assess Your Most Profitable Markets
Looking at the services and revenue should also show which streams have been the most profitable in the past. Whilst some may seem lucrative, it’s important to measure the project value against the cost per acquisition, as well as some of the more complex things you’ve experienced before, such as project overrun.
Equally, you’ll be able to see where projects have been relatively smooth to promote, execute and close – so it’s worth following more of them.
Reselling to your Existing Clients
Companies have invested in your services before, so reselling to them makes business sense. Your existing clients are a qualified marketplace, because you have the most intelligence on business you’re already under the skin with.
Investing in Cloud Services
If you’re running a smaller business, it’s difficult to be the Sales, Marketing and Operations department all at once. If you haven’t already explored using some other systems to help with these tasks, then it’s time to start looking.
There are a number of software as a service products to help with all elements of these tasks. For example, if you’ve already adopted using cloud accounting software like most businesses have, it’s clear how much easier this makes some of the day to day tasks tick over. The great news is that there’s a low price product fit for most aspects of your business that you test to add power to your process.
Investing in Game-Changing Resources
Investing in your resources in the right places can have a real impact on your business, and not just in terms of the immediate financial impact.
Businesses should regularly assess where they’re spending time inefficiently. As the business owner, you drive the highest value to the business. As a result, it’s crucial to ensure you’re not investing your time into menial things when you could be out doing good work and winning clients.
It might seem counterintuitive to spend extra money on doing a job that you can do yourself. However, if it takes you five hours to complete that task but takes somebody else a single hour, you could be spending the other four hours working on a different element of your business that is revenue generating.
That’s not to say outsource everything – it’s important to get the right service provision for the job by getting valued recommendations and verification first.
Another thing that businesses commonly explore is partnering with other trusted service providers to increase visibility, win projects easier and have other professionals to share discussions with when you’re starting out. Whilst this doesn’t work for every type of business, the collective knowledge of multiple business can make an investment seem better qualified to a prospect if they need a host of services. This is because they know they’ve got subject matter expert working on each part of their business. It’s also usually free, and your investment here is merely time-based.
Of course, it’s worth being careful about the businesses you want to align with, as your reputation is only realistically as good as that of the group.
Where To Invest First
We can see that there’s a number of ideas that will help to amplify your productivity and cash flow, but which should be looked at first? Well, before investment, it’s best to check where you’re spending money that isn’t making a return in terms of cash flow or productivity/usefulness.
Once these elements have been looked at, you can either get rid of it or reframe it to work better. Next, you’ll be able to invest in either the most profitable aspects of your business as well as fix those parts that are burning into your cash flow, week on week.