Even if you choose not to make personal New Year’s resolutions, the start of a new year — and right now, a new decade — provides a great opportunity to make some business resolutions. Whether you’re flying high or struggling a bit, the following three resolutions are certainly appropriate as you seek to maintain your success or attempt to dig yourself out of a hole.
#1 — Renegotiate contracts with suppliers and vendors
You think all contracts are carved in stone? Think again. According to an OnStrategy article, renegotiation is becoming a nationwide trend; adjusting the terms of a contract to maintain a tight business relationship is something many companies are willing to do.
How do you do it? Here are some steps suggested in a Supply Excellence post:
- Bring raw material and market data to be able to back up what you say.
- Reinforce that you’re trying to build on your long-term relationship and viability — not just cut costs.
- Explain that your better financial health will likely translate into larger future orders.
- Exchange a more favorable rate for a longer contract length.
- Find out where you can save your supplier money.
Bottom line: Do what you can to make the renegotiation a win-win, not a way to take advantage of a vendor or supplier.
#2 — Revisit opportunities to improve efficiencies through technology
Technology can be both your friend and your enemy; its complexities can be overwhelming, but you shouldn’t let that scare you away from using it in ways that improve efficiencies. Here are four suggestions for implementing technology into your day-to-day operations, from TechAdvisory.org:
- Change office communication by setting up instant messaging software like Slack or Microsoft Teams. This can be a time-saver, allowing employees to send quick messages from anywhere, anytime.
- Install video conferencing to limit or even eliminate having to travel to offsite meetings or training sessions. With a networked phone solution that offers video calls and conferencing, you can hold video conferences from the comfort and convenience of your office.
- Upgrade workstations by replacing obsolete equipment with more up-to-date models. Also ensure all your software and applications are current to ensure maximum efficiency and employee satisfaction.
- Implement Enterprise Resource Planning (ERP) software to automate processes and centralize data, allowing employees to collaborate more efficiently, eliminating redundant data entry, and reducing the number of spreadsheets needed to store critical business data.
Bottom line: Don’t discount the value of using technology to help your employees be more efficient and productive.
#3— Work to improve your cash flow cycle
Controlling your payables, negotiating the terms/extensions of payables and being vigilant in collecting receivables in a timely manner will all help improve your cash flow. Here are five specific things you may consider doing, from Entrepreneur:
- Reevaluate and fine-tune the pricing of your products.
- Replace old equipment and inventory.
- Renegotiate long-term contracts.
- Create incentives for early payments and penalties for late payments.
- Improve your marketing.
Bottom line: Don’t underestimate the value of healthy cash flow, which will help you pay your expenses, expand your business and get a business loan.
If Clear Skies Capital can help you achieve your 2020 business resolutions, don’t hesitate to contact us. Not having access to capital shouldn’t be the reason you struggle. We’ve worked with many business owners, so we’d love to share our expertise while investigating financing alternatives with you. Discover how much you qualify for today.