At Commercial Domestic Investigations, we have emphasised the importance of profit to your business, if you cannot make a profit your company will be unable to sustain itself for too long. However, profit is not the only consideration to make when it comes to financial stability.
When it comes to analysing your financial stability, the one factor that gets forgotten about the most is loans. Ensure that you are only adding the interest into your operating expenses and don’t forget to include your monthly repayments as an expense. In some cases, a business’ monthly profit can be wiped out by a hefty loan repayment. By overlooking your loan payments, your company may appear to be far more profitable than it actually is.
It’s only profit when it’s in your account
All too often, a company will include a payment that is outstanding in their analysis. You may think “this client always pays on time so this month won’t be any different” unfortunately that is not always the case. If you include an unpaid invoice into your forecasts and then, for whatever reason, a payment is not made you are left to try and make up the funds. Don’t count your eggs before they’ve hatched and only look at the money that is actually in your account.
Don’t rely on one client
Securing a client that pays you a lot each month is great, but your work shouldn’t stop there. Your smaller contracts may not be as lucrative initially, but these types of clients will continue to keep your business ticking over. Dealing with big companies can be troublesome, especially if you rely on them as your main source of income if they run into financial difficulty they can drag you down with them.
Look after your employees
Your staff, while they may not be a financial asset, are an asset to your business. You have spent time and money training them, they understand how your business works and the policies and procedures that they need to adhere too, they have also built relationships with your clients too. If your employees are unhappy and begin to leave, you will have to begin the complete training process again, costing you both time and money.
Make sure your staff feel valued, a simple “thank you” can go a long way, schedule regular reviews to discuss their performance and their pay, this will give them the opportunity to air any grievances that they may have.
Help is not a dirty word, not everyone can be good at everything, and that is OK! Sometimes the time will come where your business is growing too quickly, or a particular area of your business needs some extra attention. By employing the services of a third party, you open up access to a whole host of expertise that you may not necessarily have had access too previously.
At Commercial Domestic Investigations, our team are highly trained in-line with industry best practice. We can help your business to remain profitable by assisting you with invoice and debt recovery. If you have difficult customers that do not pay on time, it can wreak havoc with your cash flow. To find out how we can help your business then contact our team on 08444 159200 or email firstname.lastname@example.org.