You want to be successful in business and increase the visibility of your brand? Find out the tips for effective management in 2020, and have a successful company.
One of the most common problems among small and medium-sized companies is the lack of effective management planning to fulfill their commitments, for example, payment of suppliers, investment in digital marketing industry for publicizing the business, among others.
What would happen, for example, if your customers paid on time or even earlier than agreed? Or if there was a greater inventory turnover and less product losses? The benefits for operating the company would be immediate, and it would also benefit the owner’s peace of mind.
But it is clear that concrete measures are needed to have an effective management that benefits the business. Check out the tips for effective management in 2020:
How to carry out effective management in 2020
Improve inventory management
The main objective of this process should be to follow up on customer orders (be it an end consumer or a retail store). But, at the same time, it is necessary to do it efficiently, to prevent excess stock end up absorbing much of the money we need to operate.
Technology is essential to be able to make an accurate analysis of the level of inventory needed, according to the order history, the sales generated and the problems to fulfill an order.
Which tool will you need? An efficient management platform, with which you can integrate in real time all sales operations of the branches with the warehouse.
Offer promotions and discounts
The first step is to encourage your customers with some benefit in exchange for payment in advance or in cash. You will have to forgo a small percentage of your income (maybe 5 or 10%?).
But take it easy, because that amount will be offset by the increased availability of money to meet the company's obligations, so that you don't have to pay interest on your credit card, no loan or late payment for any services, thoroughly review the business numbers and define the best strategy.
Establish a clear charging policy
What is the payment term for invoices issued by your company? Is it the same for all customers? Who is responsible for monitoring this process, sales or administration? When and how are reminders sent that the deadline for making a transfer or deposit is approaching?
The ideal is to have an accounting software that allows you to maintain a orderly record of accounts receivable, the dates on which invoices were issued and which allows the creation of a calendar to communicate with customers and request the corresponding payment.
Develop a strong relationship with your most important customers
What are the people or companies that mean the most purchases for your business? What is the current value of your orders, how often do they place them and how can that number evolve in the future? What happens to payments? Are there any incentives you can offer to settle your accounts first?
According to the famous 80-20 rule (or Pareto's Law), there are 20% of customers who generally represent 80% of a company's revenue.
Identify this core in your business and analyze what adjustments in the business relationship you can offer for the benefit of both parties!