Many times this question arises while using account management software or dealing with customers during rapid growth . You also think why I am even doing this?
You can get all your answers while going through this article;
I am directly explaining you the second stage because the rest of the stages you have either faced it or will face it in the coming future;
What is growth stage?
The stage achieved by all the hard work you did to promote your business and now you are getting the result of it is known as growth stage. You think it has come instantly but the reason can be different.
There is no such thing like rapid growth. It’s just a myth. All the work you did and methods/tools you did to improve the goodwill of your business and promoting it earlier, is paying you back with the results like increase in the customer base, growth, and most importantly profits for which you also faced some bad periods.
How to face it?
The most important stage which every small business owner dreams to reach that point. Therefore stay calm and be relaxed.
As a small business owner you should clarify your thoughts and stick to the fact that you don’t have the access of various tools required for facing this stage. You have to deal with each and every situation by your own and the little countable staff standing with you as a pillar. You don’t have to distract yourself by this situation. Stick to the basic point that Every Customer Is Important and Time Is Very Precious. You have to deal with it simultaneously.
Many times the owner feels while going through this stage that he/she should expand his/her business and also increase the productivity of it by; purchasing big automated machineries, hiring new staff,making new branches,improving the quality of products or services but leaves behind the basic principle of managing the working capital which will be the most importantly involved at every stage of cycle and to be handled precisely.
To more simplify it you should go through the following steps which will be beneficial for you at the time of need;
- Manage all your cash flow statements and outstanding dues from your customers: We all know that for a small business owner every customer is important but he/she should also think whether he will be regular buyer or will pay his/her dues at the correct due date or not. For big businessmen’s it will be a small thing but for smaller one’s the value of not getting the dues on time will affect their business very deep. Therefore you should regularly go through your cash accounts everyday. I know it is another task which I am advising you but for easy working life, you have to do it.
- Determine your growth and imagine the working capital which will be required for your business: There is a myth between every small entrepreneur that if the sales are going up, profits will simultaneously increase. But you should understand that if the cost for getting new customers is high, the profit margin gets decreased. If you are having more assets than liabilities you are at good stage but if it is the opposite than you should be ready for consequences like; problem in paying on due date to the creditors,not able to expand the business etc. Therefore, try to tackle all the liabilities and try decrease the cost when you think it is not required.
- Invest in simplified accounting softwares: When you are at the starting stage,handling it manually is sufficient but as you grow in your field, the burden of paying taxes and handling the books of accounts gets increase. Therefore you should either hire one accountant or purchase some accounting softwares use some free business accounting app. They make your accounting process easy and decrease the additional burden in your daily life.
This stage is very exciting and you will learn new experience in your life which will never get stolen from you. Just believe yourself and never get distracted from ultimate goal you want to achieve it. This may be challenging for you but a good teach to open your mind positively.