The first step to optimising growth is to understand your financial position. If you don’t know how much money you are making and spending, then how can you be sure that your business is profitable? Keeping good records is essential for any small business owner who wants to see their company’s profits grow. Here are 3 ways to optimise your business growth.
1. Invest in finance
Finance is the lifeblood of your business and you need to be able to invest money to grow your business. You should also have enough money available for investment purposes so that you can get the most out of your investment. For example, you may want to purchase new equipment or technology for your company and this will require some financial input from yourself; if so then make sure that you have enough capital at hand for such purposes. Equipment finance and technology finance are two types of finance which allow businesses like yours to access funds when necessary without having to sell off any assets.
2. Know the daily costs
Knowing your daily costs and expenses is important, as it will help you decide what to cut when times are tough. After all, if you don’t know where your money is going, then there’s no way to tell if you’re spending too much on perks or not enough on essentials like new computers or marketing expenses. If you’re in a position where some cutbacks are necessary but your business needs to grow at the same time, knowing how much money goes into each area of operation will help guide those decisions.
3. Keep your bookkeeping up to date
Bookkeeping is a critical part of running a business. It helps you keep track of how much money you have and where it’s coming from, and it can help you identify new growth opportunities. You need to use good accounting software to keep your books up to date so that you know where your money is going, how much cash flow you have, and what financial risks are associated with certain business decisions (like expanding into new markets).
Ways to optimise business growth – find out more
Tower Leasing have supported the investment and growth of over 40,000 SMEs. No matter what your plans are, we have the business finance products in place and the expertise to help you see them through.
Read about our business finance solutions.
Please get in touch if you’d like to discuss how we can help you optimise your business growth.