April is Strategy Month – Do you have one?
This time of year when the seasons change and the new financial year is finally in full swing we tend to look towards our budgets and forecasts with a little doubt and fear. Developing a solid business growth strategy has to be the best way to secure the future of your business. But what is s strategy? How does one go about developing a plan on paper that actually translates into implemented actions and improvements to the bottom lines?
Join us this month as we unpack the different models, frameworks and tools of a functional business strategy.
As a business owner, do you know what these terms mean?
Business has its own language, just like any other career field. Knowing this language is crucial for every entrepreneur because information in business is communicated using certain essential financial accounting terms. As a business owner, it is important to familiarize yourself with these terms, especially as someone new to the business industry. They might seem intimidating at first, but when you get used to them, you will understand why you needed to know them.
Balance Sheet – A quantitative summary of a company’s financial condition at a specific point in time, including assets, liabilities and net worth.
Assets – Rights or other access to future economic benefits controlled by an entity as a result of past transactions or events.
Expense – Any cost of doing business resulting from revenue-generating activities.
Revenue – The total amount of money received by the company for goods sold or services provided during a certain time period. It also includes all net sales, exchange of assets; interest and any other increase in owner’s equity and is calculated before any expenses are subtracted.
Coupon – Rate of interest payable on a loan.
Enterprise – a business activity or a commercial project.
Equity – A description applied to the ordinary share capital of an entity.
Gross – Before making deductions.
Net – After making deductions.
Liabilities – Obligations of an entity to transfer economic benefits as a result of past transactions or events.
Liquidity – The extent to which a business has access to cash or items which can readily be exchanged for cash.
Profit – Calculated as revenue minus expenses.
Turnover – The sales of a business or other form of revenue from operations of the business.
How to make your clients happy.
It is crucial for every business owner to realize the importance of nurturing relationships with clients. Not only do these people provide the revenue coming into the business but there also is a great feeling that comes with contributing to the success and happiness of your clients.
Part of growing a successful business is caring for your customers. Realize that we are in times where an unhappy client can share their opinion with the masses through social media and that can negatively affect your business. That’s why it’s even more important than ever to create an excellent experience for your customers to help develop your company’s relationship with them into love.
So, how would you know whether your clients are happy or not? Well, you would not know unless they or someone lets you know, right? You need to interact with them and review their feedback very often.
Below are 3 tips on how to make your clients happy.
1. Always listen to your clients.
When you have a conversation with your clients, it’s important to truly listen and take into account what changes your business should make from the feedback you will be getting, and then follow through.
2. Respect your clients and their views.
It’s very important to be respectful of a customer’s mood when trying to resolve an issue they have with your company. Keeping your patience is key to giving your customer the time to air out their issue. Don’t come on too strong even if they are wrong.
3. Talk to your clients genuinely
Don’t act as a nameless or faceless business; genuinely talk with your clients as a person representing the business. Address your customers by name, and tell them your name at the very beginning of your interaction.
Remember that a happy client normally tells 4 to 6 people about your company and its customer service. So, making your clients happy is another way to significantly influence the word of mouth about your business.
How much should you budget for marketing?
Budget for marketing in businesses is not a one-size-fits-all. Hence many businesses find it difficult to allocate their budget and know just how much should go towards marketing. The thing is, not all businesses are the same. They all represent different industries and their turnovers are different. So is their marketing and audience.
There are factors that each business should look into when deciding on a budget for marketing. First, ask yourself these questions:
- What industry are you in?
- What do you want to achieve with your marketing?
- What is your total revenue?
After answering the above questions, you can then decide how much you need to market your company. Bear in mind that companies that provide services spend a bit more than those selling products. And for small businesses, it’s a bit complicated than to just simply assign a percentage and sticking to it.
Business.com suggests that as a small business, the best way to decide how much of your budget should really go on marketing is to do your research. Take a look at your previous marketing efforts and continue doing what works while reducing your budget on campaigns that don’t bring enough money.
Also, remember that new and emerging brands are looking to capture new market share and develop brand recognition with an audience that has absolutely no idea who they are. So, the new the company is the more expensive marketing is gonna be. But, if you aren’t well funded, make sure your rands are spent wisely and tightly to specific deliverables. There is nothing worse than spending every penny you have to build something the wrong way only to have to start over again. So do it right the first time.
The well established companies / businesses – those that have been around for 5 year and more, don’t need a huge budget for marketing, because their brand is already well known and there is no need for awareness.
Marketing fees can range depending on the age and size of the company and local or global marketing goals.
Planning your Business with a Budget
Budgets are never a priority in a small business. But they do serve an important purpose in helping you and your business plan and stay in business for the next financial year.
Michelle gives us 3 good reasons to develop and plan a budget for your business.
If you have any questions about your budget, please do not hesitate to give us a call or click and we will be able to assist you.