How to help make your small business successful

As a new year approaches, now is a good time for us small business owners to take a step back and to evaluate what key areas we need to focus on to keep our businesses 'healthy'.

It's also a perfect opportunity to lay the foundations for longer-term plans - especially if you are considering a possible sale or merger in the future.

I've done a round-up of the key things that I think help to ensure your small business is reaching its potential.

Working capital

Simply speaking, working capital is a cash balance showing the difference between current assets and current liabilities.

An easy way to define it is cash which your business has left after you have accounted for money coming in and money going out over the next 12 months.

It can tell you a lot about how efficiently you're running your business and plays a key role in business growth and expansion.

To support growth or seize possible new developments, rather than drawing any surplus from your cash flow, you might want to consider financing options instead and leave your working capital intact.

Staff that are stars

Most of us already know that good staff are a real asset. Not only with allowing you to focus on running and growing your business, but also with the contribution they can make in helping you to reach your business goals.

I've said many times, how important it is to 'find your tribe' and when you do, it will have far reaching positive effects for yourself and your business.

Over the years, I have found that you need to invest in good staff – investment being the right word. It does pay off.

Investing in IT

It's estimated that around one in five (20%) businesses are still using Excel spreadsheets and manual processes for their accounting - with just 18% going fully digital with end-to-end invoice capture, approval and payment.

Manually entering invoice details and initiating payment is not only time consuming, it also increases the risk of mistakes as well as incurring higher staffing costs.

If you haven't yet switched, talk to us about the benefits and how we can help you move to a more efficient way of doing business.

Market yourselves

Clients change over the years as their needs and circumstances shift. In order to continually get new customers through the door and to retain them it's vital to market yourselves.

Find the best communication channel/s for your business and focus on that, rather than spreading yourself too thinly.

Don't be afraid to try new approaches such as social media advertising or video – see what your competitors are up to and try to better them.

Be authentic and your marketing and messages will come across as genuine and are much more likely to resonate with people. Comment, join in the conversation and add your expert opinion on social media, in your website blogs and in your PR.

Always replicate this within your team and keep communication flowing both ways. Encourage staff to have their say and to comment and share company social media posts across their own social media channels. It's a team effort!

Keep business vibrant

It's important to stay up to date with the latest news, changes and developments in your industry, as a business and in your local and online community.

Embrace the latest technology and try not to get 'stuck in a rut' or you'll easily get left behind.

Each year, try to set aside time to get your finances on track and discuss your savings and business goals with an expert.

Giltinan and Kennedy works in partnership with many businesses, charities and individuals across West Sussex, Surrey, Hampshire and beyond. Please feel free to get in contact with us for an informal chat about your business finances on 01403 337490 or learn more at https://www.giltinan-kennedy.co.uk/services/tax-advisers