Today it’s rare to see bookkeeping as it was once traditionally done in red and black ink, but no matter what bookkeeping method you choose, all good business owners understand the benefits of keeping their business in the black by maximizing profits and reducing debt. While each business and its needs are unique, here are a couple of our favorite ways to help maximize profitability to keep your business “in the black.”
Scrutinize Processes – As many small business owners know, how you do what you do is often one of the most critical differentiators between your operation and the competition. If your business is experiencing too much negative cash flow due to office waste, travel expenses or inefficient processes, it might be an opportune time to take a look at your business from the bottom up. Start by having a conversation with your frontline employees. These individuals are likely to be able to quickly highlight inefficient processes since they use them the most and probably have strong opinions about where they would like to see improvements.
Take Care of Your Best Customers – Promotion is critical to any business but it can also be one of the most costly undertakings, especially when it comes to attracting new customers. Rather than starting from scratch with a new customer each time, look for ways to expand services with existing clients. If your business includes customers who are in good standing but leave invoices unpaid for 30 days or more, invoice factoring can keep your business moving forward when cash flow is slow. Factoring services from QC Capital provide an advance on client invoices so your business can continue running without interruption.
Determine Long- and Short-Term Goals – All business owners start with a dream but in the day-to-day of running a business it’s easy to lose sight of the short- and long-term goals of your business. Stop and take a fresh look at your initial business idea, think about where you would like it to be in 3 months, 6 months, 1 year or even 5 years. If your short- or long-term business plans include growth, QC Capital can supply the working capital you need through the sale of accounts receivable invoices. This is especially true if there isn’t yet cash equity in the existing business or perhaps you haven’t been in business long enough to qualify for a traditional bank loan. In situations such as these, factoring can be a great small business solution. Receivables factoring provides businesses with an advance against your current accounts receivable, allowing you to expand services with new and existing customers.
When you are looking to expand or improve on current business prospects, QC Capital’s receivables factoring can provide the necessary cash flow to keep your business in the black.