The thrill of the chase
If you’ve stabilized your business to the point where your cash flow is consistently in great shape, then your financial goals involve more optimization. Streamlining your cash flow typically consists of tasks such as going paperless or actively negotiating vendor agreements to mould your expenditures for compliance. Over time, your efforts to keep your cash flow above water will pay off, bringing you closer to your goals every month.
Once everything comes into play and your efforts finally show results, stability is in striking distance. After a few more tweaks, you’ve finally done it—your business’s cash flow is out of the woods and ready for growth!
A common question that appears post-goal achievement
After working so hard to attain your goal of great cash flow, achieving it can feel incredible. Once reality sets in and the high wears off, however, one question can come to mind: “where should my focus be now?”
When your cash flow becomes stable and flows freely through the veins of your business, the opportunity to do more and grow your business exponentially appears. It only makes sense to capitalize on it. Typically, businesses that attain optimal cash flows make the most out of their newfound stability and window of opportunity by creating a new set of objectives and goals to take things further. In your case, however, things may not be as clear at first, but there’s no denying the fact that a push in the form of an idea can go a long way.
To start your business expansion efforts post-goal achievement off on the right foot now, here are two aspects you can work on once your cash flow is on point: infrastructure and human capital strategy. Let’s go over how your business can make the most of the opportunity before you:
#1 – On enhancing your business’s infrastructure
When the term “infrastructure” comes up, don’t assume it means you need to move to a new office or renovate a space. From a business standpoint, “infrastructure” can pertain to anything and everything your business uses for achieving its goals, ensuring productivity, and keeping every process running smoothly.
Look over the other parts of your business. Perhaps you’ve been working so hard on your financial goals that your equipment has been neglected. Whether it’s an outdated printer or a prehistoric invoicing process, there is always plenty of opportunity for infrastructure improvement. Streamlining your infrastructure entails making several investments into various parts of your business that are conducive to success from all angles. A business with improved infrastructure will always be ready to take advantage of every opportunity it comes across. Therefore, make sure that you’re equipped to expand by making the necessary investments.
#2 – On improving your human capital strategy
Aside from the various pieces of equipment that it uses to succeed, your business relies on the very people that run its network of operations in the same way an engine relies on its pistons to fire up. While state-of-the-art equipment can be a game-changer, your purchases are worth zilch if you don’t have skilled workers that can maximize their use. A business can close shop even after it’s achieved remarkable success simply because the welfare of their workers has gone unnoticed. It just goes to show how important human capital is!
When assessing your current human capital strategy, here are a few questions to ask yourself:
- “Are your staff workers genuinely happy with their work?”
- “Are your facility’s working conditions comfortable enough for your teams to work effectively?”
- “Is the work culture enjoyable for everyone in your company?”
- “Do your staff members require more training to be well-equipped for taking on changes in the future?”
- “Does every employee in your business have the motivation to work harder?”
Answering these vital questions can be done through several actions, such as providing incentives for hard work, holding team-building seminars, hiring more workers, and even exploring the possibilities of remote work. It is essential, however, to control the investments you make in your human capital strategy, as the risk of having variable costs that go out of control is much higher.
Achieving an optimal cash flow may be a longstanding goal for most business owners, but the opportunities that come after doing so are undeniably aplenty. Once the cash rolls in and flows smoothly, make the necessary investments in your business to keep growth rolling year after year!
We understand running a small business is complicated. Your financials shouldn’t be. Take the guesswork out of the accounting and let us help you build your blueprint for success.
Contact us today for your free assessment to find out how Blueprint Accounting can support your business.