If you want to find out what is essential to increase your brand domain, here are essential tips for growing your company:
1 – Know How To Manage Working Capital
One of the main aspects of growing your company and keeping the doors open is to manage working capital properly. This term refers, in a nutshell, to the money your company currently has.
Thus, it is the sum of the values of what you have in stock, in cash, in your company’s accounts, in financial investments, if any, and accounts receivable in the short term. However, it is necessary to consider that in the short term, there are also accounts payable.
In companies, the most common is that there are rental bills, electricity, water, telephone, wages, and payments from suppliers. There may also be loans and other regular expenses.
So, to know your working capital at a given moment, it is necessary to subtract the total amount of expenses from the amount referring to the earnings of your business. This difference is the money you have leftover, which can be used as an investment for growth.
However, as you do not receive all the amounts due on the same day, nor pay the bills on the same date, you need to know how to manage the money that flows in and out of your company, that is, working capital. This avoids late payments and even default. And to manage working capital, more money needs to come in from the cash register. Some tips are to reduce the payment term of customers, have stock only with the necessary, negotiate prices with suppliers and increase your sales conversion.
2 – Control Corporate Finances
One more of the essential tips to make your company grow and a great ally of working capital is the control of finances. That is, to know exactly which accounts are payable and receivable from your business, as well as the respective due dates.
With this, it is possible to avoid the aforementioned payment delays, which generate extra expenses due to interest and fines and damage your reputation with suppliers. And if you want to grow, you must have a good relationship with your network of suppliers.
3 – Do Financial Planning
Financial planning is another essential factor in expanding your brand in the market since it works with the working capital and financial control. However, it is much broader, as it consists of planning in the long run. With this, you can set goals and anticipate how much you will need, not only for your company to grow but also to keep finances up to date. This planning can be done with the following year in mind. However, month by month should be revised and adapted if necessary. Consider using the help of professionals like comrade digital marketing agency for your business growth