Last month, we ran a survey and 62% of respondents said they would use a loan to either start a business or grow an existing business.
The increasing number of people who want to start a business is not a surprise, we discussed this in three ways COVID-19 may shape the future of business. Now is a great time to work on making your business more profitable or start that new side hustle.
There are some important things that’ll help you run a successful business that is attractive to lenders or that make it easier for you to get loans/funding for your business. These things will also help you get more profit from your business — great right?
Reduce operational Costs
Running a lean operation that can be scaled up when needed is important whether you’re thinking of starting out or already running your business; by reducing costs, you can increase your profitability.
You may consider getting familiar with areas of your business you can manage yourself e.g. social media, especially if reducing the tasks you outsource will save you some money.
Keep business and personal expenses separate
When small businesses apply for loans to us, we look at their bank statement and other factors to analyze the cash flow of the business and ability to repay conveniently. Keeping personal and business expenses separate provides more accurate financial data or information about your business cash flow. It also gives you the owner a clear picture of your business’s financial performance and what you really need to operate.
You can use tips from our article — Driving sales for your small business in a COVID-19 world — to drive regular cash flow for your small business.
Re-learn your customer’s habit
People are behaving differently and consuming products and services in different ways. Take some time to understand how to update your business and revenue models to align with these new realities. You can try out quick and informal surveys with your current customers or if you’re just starting out, friends and family.
Starting a new business or nurturing an existing one to thrive will take a lot of hard work but if you stay true to the drive and passion that for you started with, you’ll build a legacy that you’ll be proud of!
Sending good vibes,
The Renmoney Team