4 Reasons Your Small Business Failed To Grow

Most small business owners have big hopes and dreams about growing their business, but only a small fraction of entrepreneurs reach the peak of success. Too many of these businesses fail. It is a sad fact that 60% of small businesses could barely operate within the first three years of starting according to the Australian Bureau of Statistics. Sole proprietors have much lower survival rate than other types of business ownership.

Since there are only a few businesses that flourish, what does it take to survive and thrive? Successful business owners have a set of best practices that they regularly follow: investing in the right business tools, setting goals, planning for business growth and the list goes on.

In cases where business fails to grow, there are top 4 reasons they could not survive:

1. Lack of systems and process

Small businesses have to keep track of every transaction especially if it involves money. Having systems and processes in place ensures products and services are consistently managed. Small business owners are responsible for inventory management, accounts payable, accounts receivable, marketing, payroll and more. Unlike large companies that can already afford to hire people to do these jobs, small businesses have to juggle these tasks at the same time. There are three things that failed small businesses fail to implement: comprehensive bookkeeping process, customer relationship management system and inventory management system.

2. Not having enough funds

It is difficult for business owners to open doors to new customers without sufficient funds. Most businesses fail because they underestimate the amount of cash it takes to maintaing a business. Financing supports inventory purchases, business expansion, startup costs and business improvements. It is imperative that you plan the amount of capital that starting a small business requires. This way you can anticipate other expenses without breaking the bank.

3. Failure to adapt

Even if your small business has savored its initial success, it does not guarantee continued success. When you fail to monitor industry trends and changes, this is when you start falling behind your competitors. It is not uncommon for small business owners to wear many different hats and struggling with managing their time. This is why preparing for the changes becomes takes a backseat. When one area becomes obsolete, all aspects of the business become affected. Small businesses must be prepared to beat the competition by staying ahead of market trends.

4. Not using modern technology

When it comes to marketing your products and services, taking advantage of modern technology is necessary. It is difficult for small businesses to compete with big company because they do not have data-driven marketing. Even a simple task such as creating a website matters when it comes to keeping your product available to prospects. If your business does not have a mobile-friendly website, it will be difficult for you to keep up wth the giants in the business industry.

4 Techniques To Help You Trim Down Your Business Expenses

For small business owners who cut corners to ensure survival, saving money should be a priority. No one is exempted from recession. However, trimming down expenses is not a good reason to set aside plans to grow your business. You may want to take a look at your spending habits for you to find out whether you are cutting costs or increasing efficiency. There are simple techniques you can use to streamline your business operations. These ways can create a positive impact on your business.

1. Automate Business Processes

Nowadays, businesses consider embracing technology as a wise move because it reduces repetitive tasks and operational costs. Have you ever heard of cloud technology? This technology enables business owners and employees to work efficiently. Mistakes are minimised and producitivity is increased when you switch to cloud. Technology reduces operational cost in more ways than one.

If you perceive payroll to be one of the greatest burdens of operating your business, incorporating payroll software will ensure that the data you enter is true and correct.

Another reason technology cuts costs, is by lowering marketing costs.Since traditional forms of marketing are not only outdated but also costly, it is important for businesses to be more effective and targeted in more ways than one.

You will also pay less on office supplies because of Skype and other voice technology services that make communication and collaboration much easier.

2.  Use Video Conferencing Tools

Travel expenses can also hurt your business. When you need to meet employees in another location, it will mean spending money to organise presentations and meetings. These days, there are video conferencing tools you can use for free. These tools allow you to touch base with your clients and employees anytime, anywhere. Location will never be a problem with this technology.

3. Develop Key Performance Indicators (KPIs) Dashboard

When running a business, it is important you are aware of your company’s performance on a daily, weekly or monthly basis. KPIs help you understand how your company is performing at a glance. Even employees need to have KPIs as this is also a way to manage them. While it may be challenge to build KPIs at first, it will be a breeze with a lot of effort.

4. Use The Service You Paid For

It might be difficult to streamline your business if you are still sticking to traditional business processes. If you have paid for a service, why not use it? If you have signed up for a service you are not using, it is better to cancel them. You can always sign up again in a month if you do decide to use them. Keep in mind that the services are paid on a monthly basis and it will be an additional expense if you pay for it without using the service.

 

How To Enhance Your Bookkeeping Process

While going digital does not necessarily mean jumping at every new technology on offer, you still need to act fast or you will end up left behind of businesses that have already used advanced tools to simplify bookkeeping processes. Bookkeeping has come a long way because of the existence of software and management tools. The software can reduce repetitive tasks and let you carry out a task easily. The software lets you reconcile bank statements and even generate financial report without worrying about errors. Here are some tools that can assist you in finishing your bookkeeping task.

Cloud Computing

Cloud computing is the future of bookkeeping and it is the first thing that comes to mind when it comes to reducing bookkeeping’s turnaround time. These services provide real-time information and they can also extract key data from receipts. The details you need are published into cloud-based accounting software and can be retrieved anytime you need them. You can also provide real-time information so you can reconcile accounts. Cloud computing enables you to collaborate with accountants and bookkeepers.

Project Management Tools

Interpreting numbers and providing recommendations to key stakeholders are also the responsibilities of a bookkeeper. Technology is going to be important in this process. If your bookkeeper to prepare financial statements and reconcile accounts with ease, project management and time tracking tools are going to be necessary. These tools will enable business owners to monitor workflow and ensure that inefficiencies in the workplaces are addressed. Aside from monitoring workflow, the tools can also help business owners find out about customers who are generating the most revenue. The management can bring data together and provide details of your goods and budget. The tool will help you analyse customers by industry, geography and the products they purchased.

Bookkeeping Platform

When it comes to bookkeeping, each business need to accomplish unique goals, and using one-size-fits-all approach will never work. When choosing bookkeeping platform, it is important to choose the platform that can be customised. Platforms that enable customisation let you add new features and functionality. You can also opt for application programming interfaces that let you share pieces of software and communicate data. These abilities will help you integrate mobile payment systems, point of sale and email marketing.

These tools have features that can address your business needs and help you accomplish your business goals. Make sure you know the software that can help you reap the benefits of bookkeeping technology.