Whether you are a new business owner or an established business looking to grow, there are some important factors to consider when it comes to business survival. Read on to learn about how to deal with short-term cashflow crises, retain customers, and evaluate your offer in the market.
Paying attention to detail
Having the best attention to detail can have a huge impact on your business. While it can be challenging to maintain your attention span in a fast paced environment, it can make the difference between success and failure. If you have a high attention to detail level, you are likely to find yourself doing more than your fair share of the work that gets your company through the day.
Paying attention to detail has several benefits, not least of which is increased productivity. However, being too obsessive can lead to bigger problems. In fact, it has been suggested that being a perfectionist could actually cause you to lose the value of a few small details. So, a better approach is to try to be both efficient and meticulous at the same time.
Retaining customers
Increasing customer retention can be a critical part of ensuring the success of your business. With a higher retention rate, you’ll see increased revenue and profit, and a stronger relationship with your customers.
The best way to start improving your customer retention is to assess your current churn rates. If you find that a large number of your customers churn early, you may need to upgrade or fix something that’s not working. If you’ve been doing business for a while, you might have a loyal group of followers or customers who appreciate your product or service. They’ll come back to you when they need it.
A 5% increase in customer retention can increase your company’s profits by 25-95%. You can increase your retention rate by offering discounts to customers who don’t sign up for your products or services. You can also use a loyalty program like Sephora’s Beauty Insider program to give special perks to those who spend more.
Overcoming short-term cashflow crises
Among the most important challenges for entrepreneurs is managing cash flow. The ability to forecast cash flow helps business owners anticipate problems and plan for them. A treasury budget can be an invaluable tool for making financing decisions, operational strategies, and investment decisions.
In a crisis, companies usually face a drop in production, a decline in sales, and increased expenses. They may also find themselves facing difficulties in collecting payment from customers. To ensure that they are able to avoid these crises, they should adopt a variety of tactics.
Some business owners decide to sell assets that are no longer essential, while others seek additional sources of capital. However, it is not always necessary to do so. Rather, it is better to consider how to optimize operations and modernize them. This will enable the production of higher added value.
External support
SMEs use external support in a variety of ways. Some of the most obvious include financial support, free advice, and consultation. Other support packages may also be provided by governments and non-governmental organizations (NGOs) to help SMEs through a crisis.
Previous studies have emphasized the importance of external support in enhancing enterprise performance. However, few have investigated how external support is used to augment the effect of innovation practices. The purpose of this study was to assess the relationship between external support and innovative practices. The impact of innovation practices on SMEs’ business survival was also examined.
The study found that the relationship between innovation practices and SME survival was moderated by the presence of external support. The t-value for this measure was 1.698. This is a strong indication that the relationship between innovation practices and business survival was moderated by the presence of external assistance.