Business usually starts with recognizing a gap in the market and a passion to help people by filling that gap. After creating prototype after prototype, pouring over the details of your business plan and haggling with vendors over the cost of the necessary materials, you definitely want to start seeing a profit.
The good news is 75% of new businesses make through their first year and 69% make it to the two year mark. While these statistics do offer some comfort, why not better your odds with automated systems to take care of all the heavy lifting.
Perhaps you’re not a new business but a small business looking to grow. Don’t think because you’ve already been around for years, you’ve reached your full potential. There is always a way to increase your profit and automating processes is one of the easiest ways to do so.
It doesn’t make sense to grow your customer base if you aren’t managing it. How do you sell to someone when you have no idea who they are and what they want or need?
If you are unfamiliar with the acronym CRM, it stands for Customer Relationship Management. A CRM system is a software program designed to assist business owners better serve their customers by helping store important customer information. CRM software allows the entire sales process from Lead to Customer Quotes and Purchasing to be seamless. It helps manage your business’ operations quickly and without human error. Then, it creates reports and dashboards you can use to better serve your customer.
To summarize, a CRM can deliver the following for any small business:
Now, that you know what a CRM can do for your small business in growing profits, it’s time to implement a system that works for you. Here are some key points you should consider below:
Paper processes and the costs associated with them can add up to a big waste of money for most businesses. Most of what you’d normally put on paper can be done electronically. From banking to invoicing, here’s how you can make the change.
The first step in going paperless is to cut down on the incoming paper. But, how does this increase profits? Everyone has heard the maxim “Time is money” but you might be surprised to learn that you could be spending an hour of time each day sorting through bills and mail. That’s time you could be working to grow your customer base or create new products. Plus, as a bonus, it makes your business a little greener.
It’s fairly simple to make the switch to online billing and banking. Usually during the process of securing a bank account, there is a box to check that says you’d like to receive paperless bills only. This is often the case for any other accounts you open.
On the topic of billing, the next step in increasing profits through automation is to make electronic forms of payment to your vendors and other service providers you depend on. This allows you to schedule automatic payments, which can improve your profit margins in a number of ways:
After you’ve gone paperless with all or most of your accounts, you’ll want to have an automated invoicing system in place. Online bookkeeping software like QuickBooks, for example make getting paid an easier and faster process.
When you use software instead of paper to invoice customers, the invoice is sent automatically. When the customer pays the balance, the system is updated once again. This means you’re not scrambling around at the end of the month sending out invoices, paying for postage and making small human errors that could cost you in the long run.
With payments coming in more quickly than ever before, you can feel more confident when it comes to managing your cash flow needs. Because cash flow is king.
Payroll can be met on time, bills (the ones that you automated earlier) can be paid without any overdraft fees and more importantly you, the business owner will have more time to focus on making improvements in other aspects of your growing business.
Believe it or not electronic invoicing shows your customers, and potential customers how tech savvy you are. Customers like buying from businesses who have modern systems in place. Without the hassle of paper invoices and receipts, they are more likely to stick around and do business with you again.
Not only do your current customers enjoy an easy, automated online payment process, but so will international customers. Imagine the improved customer experience, if you could invoice in any language to any part of the world. Well, with an online accounting system, you can. Let’s quickly review some key components that you should include when creating invoices in QuickBooks:
Tip: Apart from automating your invoicing system, it’s time to start accepting electronic payments. This will allow you to see your sales come through in real time. On top of this, electronic payments also offer your customers a great convenience and chances are they will be more willing to buy from you. In fact, a 2014 study showed that only 9% of people surveyed, preferred paying in cash.
RELATED: How Online Bookkeeping Boosts Customer Payments
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So far, you’ve ditched paper, implemented a CRM, integrated automated payments and invoicing. Now, it’s time to stop manually tracking inventory. Remember, increasing profitability doesn’t only mean cutting costs. It also means scaling your business and one of the best ways to improve scalability is to automate inventory.
As your business grows, you won’t be able to keep track of the products you have in stock and analyze the data. By having a program actively monitor your inventory, you can save time and have confidence that as your business grows, your systems can actually grow with it.
So, what should you look for in a good inventory management system? Here are some points to consider:
Conveniently, QuickBooks offers an inventory tool so you can invoice and manage inventory all in one place. Here’s what you’ll need in order to implement this kind of system successfully.
To recap the details you need to know when it comes to automating your business:
NEXT STEPS
Hopefully, these tips provided you with a good starting point to use automation to help streamline your operations. However, even with automation, your business may be at a point where it makes sense to outsource particular functions such as your accounting needs.
If you already have an in-house accountant managing your books, then you know that it can get pretty costly. However, outsourcing your accounting and bookkeeping to a firm like Ignite Spot saves you time and money, allowing you to focus on your core operations. With outsourced accounting from Ignite Spot, you won't have to worry about the principles of accounting; and things like payroll or cash flow forecast. All you have to worry about is growing your business. Contact our team to see how our online bookkeeping services can meet your needs.