In the ever-accelerating rush of everyday business, owners and managers of small and medium-sized businesses (SMBs) may neglect key financial issues. Here are some good tips for getting through the top 10 financial challenges that owners of SMBs face.
1. Know the risks: More than simply knowing them, you need to understand them, too. As the fast pace of business and technology gets nothing but faster, you must clearly (and quickly) understand and explain all the risks associated with markets, finances and business practices.
2. Choose helpful innovations: You need the right tools at the right time, so you need to know the advantages and disadvantages of both technology and operations. CRE computer rentals, for example, offer state-of-the-art power without a big price tag, and can help keep down the high cost of high tech.
3. Measure by ROI (Return On Investment): Don’t base decisions on what feels right or puts out the most pressing fire. Focus on ROI, and measure what products, services, technologies and customers contribute to success. Weed out low-return activities.
4. Customers drive success: Businesses survive because profits pay for operations now and growth in the future. One key to profitability is mining your current customer base for new opportunities. If you know your customers, their unique characteristics and the cost of sales, you can identify new opportunities.
5. Focus on profits, not revenues: All businesses want sales numbers charting “up and to the right.” But rising revenues may not mean more profits. Stay on top of the cost of doing business, and put energy into refining your profit formula, not charting revenue figures.
6. Empower people to do their best: Employees are essential to business success, so equip them with the best collaboration and communications tools to maximize employee productivity, company morale and customer satisfaction.
7. Enterprise Resource Planning (ERP): ERP systems keep SMBs on top of costs, revenues, customer behavior, profitability and decision-making. For establishing accountability, of course, it is unsurpassed.
8. Don’t miss the “important” by focusing on the “urgent”: This is an age-old problem and is a tough nut to crack. As mentioned in #3 above, managers can get stuck in a cycle of putting out fires. Learn to address ongoing matters in a timely fashion.
9. Chasing deals rather than building value: A business is an asset whose value grows or declines over time. SMB managers must see beyond the moment (the latest deal or product) to the strategies required for growth. Decision-support systems especially designed for SMBs can help keep you focused on value.
10. Don’t stand still: A common error is thinking that whatever worked in the past will work today or in the future. Markets, customers and the competition ignore and even change the rules all the time. Stay on top of industry trends, change any failing strategies, update/upgrade your systems – and keep your customers satisfied!
Whenever you need to bring some powerful Mac Pro rentals on board to finish a big project, or set up a conference breakout room with audience response system rental, CRE is up for the challenge. Simply call us to reach an experienced Account Executive who will assist you with every challenging detail.