Story image

Working smarter not harder key to building stronger business

29 Oct 18
Sponsored

So you want to build a stronger business. It’s one of the goals that everyone in your workplace should strive for, but to do so you need to know the nuts and bolts of the bigger financial picture.

The day-to-day business choices can have a huge impact on your future. By understanding your business’ financial health, you’ll avoid nasty surprises further down the road.

It can be an overwhelming task, but by breaking things down into manageable steps you’ll get a better idea of how your business is performing. 

Bartercard has compiled the Seven Habits of Highly Effective Small Business Owners – a handy guide that provides the insight you need to tackle every aspect of business ownership.

Two of those habits include mastering the basics, and keeping an eye on the cash going in and out.

Mastering the basics

It might seem obvious that you need to pay rent to your landlord, pay your employees, and collect customer payments for your products and services, but you need a better understanding of your financial position.

If you’re reaching revenue target, what about net income? How much revenue is overhead? Is the percentage of your gross profit up-to-par with industry averages? 

In addition, what metrics are really important for your unique needs? If you ask the right questions and focus on the right things, there’s a smaller chance that you’ll hit trouble down the line or that your operating expenses are unusually high this month.

Keeping track of cashflow

Your product might be fantastic but if you’re not selling enough, you’ll find it difficult to cover monthly obligations.

According to Bartercard, it’s not only the big financial numbers like revenue that paint a picture of your business’s overall health – the daily expenses also count.

“Without enough income to cover what's due, you won't last long, and paying cash now when you'll need liquid assets later can be the nail in your coffin.”

So if you know what money is coming in, what’s on hand, and what’s going out, these can make daily operations easier. 

You can review existing obligations and look at what you need to cover them, how much cash is available, and if there’s anywhere you can cut costs

With guidance and know-how, you can whip your business into shape and keep it going indefinitely.

Click here to grab your free copy of Bartercard’s Seven Habits of Highly Effective Small Business Owners.

How blockchain will impact NZ’s economy
Distributed ledgers and blockchain are anticipated to provide a positive uplift to New Zealand’s economy.
25% of malicious emails still make it through to recipients
Popular email security programmes may fail to detect as much as 25% of all emails with malicious or dangerous attachments, a study from Mimecast says.
Human value must be put back in marketing - report
“Digital is now so widely adopted that its novelty has worn off. In their attempt to declutter, people are being more selective about which products and services they incorporate into their daily lives."
Wine firm uses AR to tell its story right on the bottle
A Central Otago wine company is using augmented reality (AR) and a ‘digital first’ strategy to change the way it builds its brand and engages with customers.
DigiCert conquers Google's distrust of Symantec certs
“This could have been an extremely disruptive event to online commerce," comments DigiCert CEO John Merrill. 
Protecting organisations against internal fraud
Most companies tend to take a basic approach that focuses on numbers and compliance, without much room for grey areas or negotiation.
Telesmart to deliver Cloud Calling for Microsoft Teams
The integration will allow Telesmart’s Cloud Calling for Microsoft Teams to natively enable external voice connectivity from within Teams collaborative workflow environment.
Jade Software & Ambit take chatbots to next level of AI
“Conversation Agents present a huge opportunity to increase customer and employee engagement in a cost-effective manner."