Measure the “Progress” of your business is highly important to define new business strategies and review the existing one
It goes without saying that, a business usually requires time to create income and make sure you cut back on your expenses. If there is an increase in revenue, there is an aspect of anticipation, and also a risk factor when you’re doing new stuff. When you put the work needed to build a company, you will beat the challenges that come with being a business owner.
So how do you know if your company is really progressing or not? Here are the different levels of business development to give you a comprehensive idea about where your company is standing right now:
1) Acquiring New Customers:
At this stage, the challenges are fairly simple. To deliver your products and services, you are still finding customers. One of the key questions you need to ask at this stage is how you can expand to build a much broader sales base from a single key customer or production process. You also need to secure enough funds to cover the high demands of cash when starting a business.
At this point, there is little to no formal planning or systems. The owner of the business must stabilize its quality of production or products. If the company is gaining enough customer acceptance and the product capacity, it will continue to grow over the long term.
The worst scenario would be the closing of business when capital is running out. If this happens the owner can sell the asset value of the company.
2) Pursuit for Sustainable Business:
Once your business successfully passes through the first level, it now has a good base of customers with whom it can offer satisfactory products or services. At this level, a significant challenge is to balance revenues and expenses in order to make the venture sustainable.
Your business has to generate sufficient cash flow to break-even in the short term and replace capital assets when they run out. There is also a need to create sufficiently large financial growth, given the niche in the market and the industry. The business may now have a manager or overseer working with the staff.
3) Business Becomes Stable and Independent:
Your Business gets stable and competitive at this point. It has finances and systems in place that keep the company operational. The firm has reached a point where it is sufficiently large and economically healthy. It has thriving penetration of the market and earns above-average profits.
A business can stay indefinitely at this stage if it is managed well or is not lagging behind the competition in the market. At this level, the key issue is to hold cash through peak months and to endure challenging times.
4) Explore New Horizons:
The biggest challenge at this level it to manage and consolidate financial revenues from the company’s rapid growth. The management team must have an entrepreneurial spirit and be able to respond to changes in the market.
Management and processes need to evolve rapidly to remove the inefficiencies resulting from rapid growth. By hindering innovative creativity, budget control, strategic planning and traditional expense structures should be strengthened.
To summarize the talk, whatever level your business is standing, here at CredSol Business Service you can keep your business alive through smart business and financial solutions. Use the choice below to get a detailed overview of all the financial products available for your company.
