As the CEO of a growing company, you must balance the day-to-day operations with the financial obligations of your business. Effective financial planning is vital to its success.
It’s essential to manage your finances as you grow your business because if you’re not careful, it’s easy to get into trouble. Here are three proven strategies to help keep your business on track, profitable, and growing.
Establish an Effective Financial System
Expanding your business requires additional sources of capital to fund operations and fuel plans.
Traditional lending institutions, such as banks and credit unions, are one option. However, obtaining these loans can be challenging, especially if you have an original business venture. Investing in venture capital can be another option, but this process can be difficult and time-consuming, too.
While private individuals can take advantage of loan places throughout the US like Oportun to finance growth, multinational organizations require a diverse portfolio of funding sources. These sources may include loans, equity investments, grants, and government contracts. If you have multiple sources of capital, you will be better able to deal with any unforeseen circumstances and continue to grow your business.
Preparation is the key to raising capital. You will be in an advantageous position to keep your business in the black by becoming familiar with the various sources of funding and putting together a solid financial infrastructure.
Coach Your Executive Team to Win
In your role as CEO, you are responsible for assembling a top-notch team that will grow your business.
After you know what your employees’ skills are and where they want to go, you need to help them put those skills into practice. Give each person ownership for tasks that will help them develop in their key areas. You can do this by giving them more challenging assignments, letting them take the lead on a new project, or pushing them to make sales calls. The best way to learn is by doing, and the more autonomy you give them, the more you will demonstrate your faith and confidence in them.
Make sure your people understand that you do not expect them to be perfect — mistakes are part of learning. Risk-taking is key, as is learning from failures and continuing to move forward. To encourage your team, share stories that encourage them to take the initiative. Get inspiration from everywhere. For example, you could tell the story of an Australian girl who started her own toy company when she was ten. She now expects to earn more than $21 million over the next few years from a deal with Myers, a major retailer.
As the CEO, it’s your job to set the tone for company culture. Establishing an atmosphere of excellence and encouraging your team to take risks will create an environment conducive to growth. Enhancing the skills of your executive team will set the stage for a successful future for your business.
Develop Strategic Partnerships
To grow as an organization, you must develop relationships with strategic partners. These are companies with complementary business models that can help you reach your desired audience.
For example, if you’re running a chain of clothing companies targeting millennials, you might want to partner with hip restaurants. If customers show their receipts from your partner businesses, you could offer them discounts. The partnership would be a win-win — you would gain exposure to a new group of potential customers while your partner would become more popular with their target demographic.
Relationships should be approached with a give-and-take mentality. You must give something valuable in return for exposure
Set Your Business Up for Success
You can use these three steps to keep your business back on track and headed in the right direction. You’ll build a thriving business if you create an efficient financial system, coach your executive team, and nurture strategic partnerships.
