3 Ways to Reshape Your Business in 2016
The dawn of a new year is the perfect time to take stock of your business. It’s a natural moment to reflect on the past year, celebrate your successes and analyze your setbacks — including both the hurdles you were able to overcome and the ones you weren’t. It’s a time to set goals for the coming year that are realistic and within reach, but that also push you to take your business up a notch.
Whether you’re aiming to beat last year’s sales performance, working harder to anticipate potential vulnerabilities, looking to launch a new product or taking the leap into a new market or industry, here are three simple things you can do to make 2016 your most successful year yet.
Have the Midas touch
Perhaps you unveiled a new product or introduced a new service in 2015 and demand went through the roof. Now you’re struggling to keep your head above water and deliver to your customers. Demand is great, so long as you have the supply to support it.
So why do some businesses stay profitable, while others go the way of the dotcom bust?
Simple. Many of the successful ones –- from startups to large public companies –- have figured out how to turn their orders into cash. That’s right, cash.
One way you can accomplish this is through something called factoring, a form of secured lending that allows businesses to convert their receivables –- invoices, purchase orders, you name it –- into cash. Factoring gives companies the capital they need to run and grow business. It’s fast and flexible funding that essentially pays you early for the goods and services you’ve already delivered.
Make debt your friend
Most tech companies looking to expand their footprints, whether newbie startups or more established players, are immediately drawn to the glitz of venture capital and the hope of landing themselves across the table from an investor -– or better yet, on Shark Tank. Let’s face it, venture capital can be really sexy for a first-time CEO, and the allure of investor backing is like a knight in shining armor for a company looking to raise its game.
But many growing companies fail to realize that for every dollar of venture capital they accept, they lose another piece of the businesses they worked so hard to create. In other words, each piece of equity you give up is a claim on every dollar of earnings your business generates.
While VC money, investments and cash infusions may give you a temporary leg up, don’t underestimate the cost of giving up equity.
Many CEOs are reluctant to take on debt, especially during rocky phases, which ironically, is when they need capital most. And others don’t have the balance sheets they need to even qualify for a traditional business loan.
In this highly competitive tech market, the companies that survive and thrive are the ones that have found creative ways to finance their growth. They’re the ones that recognize that alternatives to venture capital and traditional lending don’t have to be the stuff of rainbows and unicorns. Alternatives to big commercial banks and Silicon Valley venture funds do, in fact, exist. And moreover, they offer companies the capital they need, when they need it, without the red tape and restrictions businesses are so often saddled with.
So, do yourself a favor in 2016 and get creative. If you can’t get what you need through more traditional channels, look for unexpected alternatives.
Get your house in order
The first few weeks of the new year are the perfect time to weed out lackluster staff and modify poor processes that not only hamper growth, but also have the potential to create major headaches for your business.
It’s a time to assess your vulnerabilities and put the proper infrastructure in place to ensure you never fall behind -– and, more importantly, that you always get paid.
It doesn’t matter how strong your sales are or how much revenue you’re projected to haul in this year. Without the right invoicing system, accounts receivable team and inventory management structure in place, you’ll find yourself in a never-ending struggle to stay afloat. Take the time to get your back office in order. And if you can’t or don’t know how to do it yourself, outsource it to someone who does. Factors are experts at managing many of those functions.
The businesses that will inevitably come out on top in 2016 are the ones following the road less traveled. So resolve to look past the obvious and find alternative solutions that will take your business to the next level.
Source: mashable.com
What are your plans to revamp your business in 2016? Tell us in the comments.
