How You Can Avoid Bankruptcy as a Business

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StrategyDriven Managing Your Finances ArticleOne of the worst nightmares for any business owner is their business becoming bankrupt. While some companies have been able to rise from the dust in such instances, this isn’t the fate for many. In this case, it’s safe to say that if you can, avoid getting to the point of bankruptcy in the first place, you should. However, this means paying close attention to your business’ finances by budgeting and closely watching your expenditures.

In case you’re wondering what steps you need to take to avoid such from happening to you, you’re going to find a few essential ideas you can try below.

Get a Qualified Accountant

One of the first ways to avoid bankruptcy as a business is to invest in a qualified accountant. Seeing as they have experience and the required knowledge when it comes to finances, they’re in the best position to help you avoid major money mistakes and keep your books in order. When you’re looking for an accountant, be sure to look for someone who has experience working in your sector if possible. They should also be certified as you’re entrusting your business’ finances into their hands. In addition to this, other general qualities to look out for are someone who is detail oriented enough to pick up on irregularities and mistakes as well as an accountant that is trustworthy.

Get a Mobile Office

If a physical office isn’t an absolute necessity, why not get a mobile one? Doing so should help you keep expenses to a minimum and free up your finances. Renting out an office space can be incredibly expensive, especially if it’s in the city center or a mainstream area. However, by getting a mobile office, you can reduce that cost as well as move your office just about anywhere you want to! If you’ve never heard of them before, they can be used as alternatives for conventional office spaces, as conference rooms, or as a training facility. If you want to save even more, this company has used construction office trailers you could consider.

Manage Your Debt

One of the most common causes of bankruptcy is debt. Businesses often need to borrow for a variety of reasons, such as to give their business a push or to help expand operations. However, when debt spirals out of control, it can be extremely damaging for a business. Keep track of the institutions that you’re owing and try to pay off your debts as quickly as possible. Also, before taking out any loans, make sure you’re getting a fair deal in terms of interest and repayments. Nevertheless, debt can help to jumpstart your business when its used and managed in the right way. Some of the ways it can include tax deductions in some cases, faster growth, and better credit if you’re consistent with repayments.

Lower Expenditures

When it comes to bankruptcy, one of the biggest culprits is probably unnecessary expenses. There are so many things that you may feel you need as a business that ends up being entirely unnecessary. Have a look through your outgoings for the past three months and make a note of what you’re spending on. Identify any patterns, such as spending too much on work lunches, high travel expenses or anything that can’t be accounted for. There will be things that aren’t essential to business growth like cable TV, for example. Other practical ways to cut business expenses is by reducing office supply expenses, looking for ways to save on insurance, and doing in-house marketing to mitigate costs. The point is to be as frugal as possible so that you can save money and avoid hitting rock bottom.

Separate Accounts

You’d be surprised at the number of businesses that go under because of a failure of owners to separate accounts. When you’re depositing and withdrawing from a business account for both business and personal reasons, it can throw your finances off course and make it difficult to see how your business is growing. The easiest way to avoid this is to make sure your personal account is entirely separate from the business one. Once you pay yourself a salary every month, there should be no reason to dabble into business funds. Also, by getting your business a separate credit card, it should ensure that any small or miscellaneous purchases you make for the company are easily accounted for.

Consolidate Loans

In addition to the mentioned, you should think about consolidating your loans. Managing your debt adequately is imperative if you want your business finances to remain healthy. If at any point, you notice that your repayments are becoming overwhelming and you want to reduce the amount you’re paying, why not try and see whether you can consolidate your loans meaning you take out a new loan to pay off liabilities and consumer debts on more favorable terms. Although paying smaller amounts means it will take you longer to repay, it frees up your finances so that you can use them for operations or to expand your business and increase revenue. In some instances, you could even get lower interest rates.

Revisit Your Budget

When trying to avoid debt, it always boils down to one thing which is your budget. See how you can improve this so that you’re genuinely saving all that you can and financially managing your business in the best way possible. There’s always room for improvement and an opportunity to ensure your finances are improving as opposed to declining. You can do a regular audit as well as occasionally shop around to see if there are cheaper alternatives to all of your expenses. Ultimately, always think about every expense carefully and how it could impact your business.

Conclusion

Bankruptcy doesn’t have to be something your business experiences if you learn to be frugal as a business and budget. Your focus should be on raking in steady income and new business as opposed to unnecessary spending. When you’re able to do this, you should find that you’re moving forward and growing financially as a business.

Greer Trucking Listed as a StrategyDriven Trusted Services Partner

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StrategyDriven Trusted Service Partner | Greer TruckingStrategyDriven is proud to introduce Greer Trucking as our newest Trusted Services Partner!

Having completed our rigorous certification process, we found Greer Trucking to be a market leading service provider with proven client results.

Campaign Logistics Execution for a Fortune 500 Retailer

As the standard logistics partner for a large Freight Forwarder, Greer was given an opportunity to work closely with a client throughout the entire campaign life cycle for a major Fortune 500 Retailer, from initial bid support to final closeout. This required a tremendous amount of strategic insights, coordination and planning due to the number of locations needing to be serviced and the various stakeholder requirements. Greer was commended for our performance and has since become a primary logistics partner.

Greer Trucking provides logistic services for businesses of all sizes.

About Greer Trucking

Greer Trucking is a preferred carrier for brokers and freight forwarders. We specialize in air freight logistics including pick-up and delivery, cargo screening, and short-term inventory management.

Learn more about Greer Trucking at: www.greertrucking.com

About StrategyDriven

StrategyDriven provides executives and managers with the planning and execution advice, tools, and practices needed to create greater organizational alignment and accountability for the achievement of superior bottom line results. At StrategyDriven, our seasoned business leader experts deliver real-world strategic business planning and tactical execution best practice advice – a blending of workplace experience with sound research and academic principles – to tens of thousands of business leaders worldwide.

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5 Easy Ways To Keep Your Employees Happy

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StrategyDriven Managing Your People Article | 5 Easy Ways To Keep Your Employees HappyA happy workforce is a productive workforce, so it’s vital to ensure you look after your employees throughout the highs and lows of your business journey. When people are feeling the strain, they become demotivated, and this can lead to low productivity levels, which is not right for overall company goals. However, there are some simple ways to make sure everyone stays chipper through the best and worst time.

Take a look at some of the critical areas to consider below:

1. Recognise and praise success

It’s easy to forget the little things in the workplace due to the amount of work going on. However, just saying ‘thank you’ for a job well done, or recognising a team on completion of a successful project can work wonders for self-esteem. When people feel they are going unnoticed, they will eventually lack the motivation to put the effort in. This, in turn, will affect levels of productivity and willingness to put maximum effort in.

2. Offer good benefits

Not all companies can afford to give an all-encompassing benefits package, but making small steps can be a huge motivational boost. Anything from supplying coffee on-site, implementing a cycle to work scheme and using eyecare plans, so employees don’t have to pay if they need glasses for VDU use is a great way to show you care about their health and wellbeing.

3. Create an inspiring work environment

No one likes to sit and stare at four walls all day so it could be time to start thinking about your office design. Optimising natural light is a great way to boost morale and happiness in a workspace. Plus, dedicating areas, so individuals don’t feel tied to their desk can give employees some freedom to move around and feel creative in a collaborative space. On an interior aspect, why not add colourful prints or incorporate a creative décor theme to add some fresh and vibrant vibes to often whitewashed walls.

4. Trust individuals

One of the main frustrations from many employees is that they feel management don’t trust them to make the best choices. In many cases, management cannot do and control everything on a daily level, so delegation is a must. Assigning trust and responsibility to people gives them a sense of pride in their work. It also helps people to strive for better results.

5. Communicate well

Communication is another sticking point in organisations, and many people always feel out of the loop. Of course, you can’t disclose everything to employees. Still, there will be times where sharing details of projects and plans is beneficial, so everyone understands the bigger picture. This can also work in business slumps as if you don’t share concerns and strategies for improvement; employees can feel vulnerable and out of control of their personal circumstances.

These are simple ways to get your whole team on track and get the best out of everyone daily. They are also easy to implement, and you’ll reap the rewards in loyal and trusting staff that want to see the business succeed.

4 Ways Vehicles Drive Businesses That You Don’t Know

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StrategyDriven Managing Your Business Article | Entrepreneurship | Business Vehicles | 4 Ways Vehicles Drive Businesses That You Don't Know

Cars may be a standard part of life, but businesses don’t utilize them as much. Some do, and they are seen as influential, thriving companies that can afford to provide vehicles for their staff. You would love to do the same, yet don’t have the money or resources. At least, that’s what you assume.

Of course, the truth is that company cars raise brand awareness and generate leads without being overly expensive in terms of upfront costs. The majority of them are leased and paid in installments every month. And that’s one thing you didn’t know about vehicles and how they drive businesses.

In this post, you’ll find four more impacts that cars can have on your organization. However, be warned that they aren’t always healthy. Cars come with lots of positives, yet you’ve got to plan carefully for them to help the firm be successful.

Employee Perks

As far as employee perks are concerned, a vehicle is usually at the top of the list of benefits that workers desire. It’s not hard to see why when it eliminates the average costs that are included with owning a car outside of the office. The average sale price for a new engine in the US is around $35,000, and used cars aren’t much cheaper. Then, there is the rising costs of insurance and gas to consider, as well as repairs and maintenance fees.

Looking at from a financial point of view, it’s no wonder employees want a company car. The direct knock-on effect of this is that you’ll be able to attract a high standard of applicants when looking to recruit. Organizations that provide quality bonuses tend to secure fantastic candidates because modern workers require more from a job than a strong salary. Of course, though, it’s worth considering that you will also need to provide parking, maintenance, and even a traffic control company to keep things from getting out of control. These costs are often worth the benefits that come with your company cars.

Hidden Costs

What people don’t understand is the expense of opting for a company vehicle. In some ways, it can result in their wage being smaller at the end of each month. As soon as staff realize this, morale may drop, and that can affect output and productivity, too. There’s also employee turnover to consider.

A high rate of people leaving the business will cost you a fortune in the short, medium, and long-term. You must find a way to make employees who drive happier, and a utility vehicle is an option. They are believed to make drivers more content, limiting the high rates of turnover. Alternatively, you can be transparent about the fees from the outset. That way, you or the business isn’t to blame if the situation goes south.

21st Century Practices

The changes in the automotive industry are massive. Today, pretty much all the major manufacturers are creating hybrid or electric cars, and some are pushing the envelope further by removing drivers. Automated cars may be experiencing a few snags right now, but there’s no doubt the technology will be on the market in the future.

How does this help your business? By partnering with manufacturers such as these, you can piggyback off their innovation. Your brand is seen as creative and new-age as a result of implementing the technology into your business plan. The right vehicles are more than marketing tools with gaudy exteriors – they are signs of intent.

Also, these cars connect consumers with companies. Shoppers are more moralistic than ever, and it impacts buying decisions. Using an EV may be the symbol that proves you respect the planet, encouraging more people to adopt the brand.

Enhanced Customer Service

The importance of customer service will never cease. How customers expect to interact with business may evolve, but they will always judge you on your ability to deliver. Cars are the missing piece of this puzzle, especially vehicles that drive autonomously.

Similar to a drone, AV will be able to deliver products with fewer glitches in the future. However, unlike a drone, customers will be able to track it mid-journey to check up on their package. Plus, removing the human element means that delivery times will be shorter than usual. Then, there is the virtual assistant support that you can implement for holistic consumer experience.

Affordable self-driving cars are some way off the market, so it may be a while before they’re used in to drive businesses forward. Still, when the price drops and the tech is more stable, your customers will receive an enhanced service that will catapult you to the top of the market.

From helping customers to advertising the company to potential employees, cars have their pros and cons. Do you think one outweighs the other?

The Coronavirus Impact: How to sell your company to potential employees

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StrategyDriven Managing Your People Article |Coronavirus|The Coronavirus Impact: How to sell your company to potential employeesUnless you are a business like a supermarket who is benefiting from the recent coronavirus outbreak, it would be fair to say that there are a lot of concerns in the world of business.

With more of the world coming under lockdown, it means that most income is radically reduced. Governments might be suggesting that tax relief and other financial benefits will be on their way to companies, but there’s no doubt that the situation is fragile to say the least.

From an employee’s perspective, there are all sorts of unanswered questions. The thought of moving job during this period is almost out of the question, for the simple reason that it’s such a risky plunge to enter a probation period which may end abruptly.

It means that any business (and there won’t be that many of them) who are looking to expand has a limited number of options. Today’s article will therefore look at some of the ways you can sell your opportunity to a potential employee, and boost your workforce amid this crisis.

Emphasize your long-term plans

As we have already alluded to, this is a period where employees are going to be very wary indeed. They know that this is a fast-paced market, and one that is going to be changing by the day.

It means that you can’t be talking about your plans over the next month or two, you need to be thinking longer-term. Admittedly, outlining your plans during the crisis is fine, but this is the time to sell-in your growth plans. While some businesses are stagnating, this might be the time where your company is putting in the legwork to come out the other side all the more stronger. Make sure anyone who is poised to join your company knows this.

Show off all of your benefits

Of course, the financial package is going to be the main thing on most people’s minds during this period. At the same time, there is more you can use to tempt individuals to join your firm.

One of these might be benefits. Granted, free gym and cinema membership might be dangerous territory in the current climate, but some companies will have alternative benefits like discounts at popular stores as an example. Make sure you use software to manage employee benefits so that this is outlined loud and clear to your workforce.

Be flexible with your contracts

Finally, make sure you’re not going to scare anybody away by being too stringent with your contracts. Generous probation periods need to be outlined, while you also need to be careful about how you are managing unpaid leave. We’ve seen some companies really upset their workforce by insisting that their employees take such leave and while such an approach might be necessary, it’s not a way to win future workers if that is your current aim. People will be looking out for these clauses more than ever before so where possible, we would urge you to be more relaxed than usual with your contracts.