Congratulations—you’re past break-even and your business is finally turning a profit. But hold on a second. Don’t go to the Ferrari dealership just yet; you need to capitalise on your newfound success and consider the best ways to safeguard your business’s future.
Take a Beat and Strategise
Create a Long-Term Plan
Collaborate with other leaders in your business to develop a long-term strategy that encompasses your company’s goals over the next 2-5 years. We’d recommend using a SWOT analysis to help capitalise on your strengths and opportunities, while also considering your weaknesses and threats.
Don’t Grow or Diversify Too Soon
While growth and diversification might be aspirational long-term goals, it’s best not to run before you can walk. Don’t look for excuses to make your HQ a full-blown building site full of diggers, bulldozers, and powered access lifts. Focus on what’s already working and how to improve it.
Embrace Your Newfound Financial Stability
After months or even years of lean times, you’re finally in a position of relative stability. The worst thing for your business is volatility, so let’s take a look at what you can do to keep the ship steady.
Pay Yourself a Fair Wage
Since you’re the owner, your salary isn’t just about personal income; it’s a legitimate business expense. Set the precedent of consistently paying yourself a sensible wage, as this will minimise personal draws and demonstrate that the business is sustainable, which could help attract investment down the line.
Set Up a Cash Reserve
Grant yourself some peace of mind and shield your business from unexpected costs and challenges by setting aside a few months’ worth of operating expenses in a cash reserve – you never know if a drop in sales is around the corner.
Reinvest in the Business
Reinvesting profits into different aspects of your business will help reduce risk and increase the likelihood of a long-term return on investment.
Your Workforce
Your staff are your biggest asset, so investing in their training and professional development will likely boost productivity not only in the short term, but over time. Additionally, now that your business is profitable, you have a golden opportunity to make key hires that could streamline your workflow and even develop the leadership and management skills of loyal employees.
Infrastructure
Audit the technology that your business uses – whether it’s software, hardware, or machinery – and identify the best opportunities to boost your operational capacity. If you’re raring to get the builders in to make significant changes, this is your chance. Put on your hard hat and get a scissor lift hire company on the phone – you’ve got work to do.
Customer Service
Convert new customers into loyal ones by building on the customer service foundations you’ve likely already laid; focus on feedback procedures or ways to improve your user experience (UX).
Marketing
Expand your business’s visibility by increasing spending on digital marketing, for instance, improving your website’s search engine optimisation (SEO), promoting your products or services on relevant social media platforms, or promoting email campaigns for your most loyal customers.
Conclusion
If business was easy, everyone would be doing it. And if you’re lucky enough to have turned a profit and are already looking ahead, it’s easy to argue that many of your biggest challenges are already behind you. But don’t be hasty – identify the best ways to safeguard your business’s future and to promote sustainable growth.