Do you feel safe in operating your business and your life in general? By safe, I don’t mean having a bodyguard to protect you from the dangers in life. I mean do you have stability?
The service I offer and the partnerships I create with my clients gives me stability, not only in my business but also in the marketplace with my competitors. It doesn’t, however, make me financially stable in the marketplace as I believe it is very difficult these days for any small business to achieve financial stability which is mainly due to the rapid growth of technology we have in today’s world.
This week I had a client tell me that the trust that has built up between he and I in business over the past 4 years has earnt me an ongoing contract between our two business’. This got me thinking. Is it only trust that he values or does it goes much deeper than that? So I asked the question, “What makes you feel safe in our business partnership”?
His response was that together we have been able to form a mutually beneficial trust and we have been able to grow our services with the help of each other. He loves the honesty in my approach and values my commitment to his business and staff. He said that the one word that comes to mind to best describe what it means to have partnered with me is. ‘Stability’.
This got me thinking about my own business. Do I have stability in my own business? I offer an excellent service and aim to build profound business relationships with my clients but it doesn’t make me safe. It doesn’t make me safe from losing clients and/or losing income. It doesn’t make me financially safe. On saying that, do I feel stable in my business practice? Do feel I have an edge over other Virtual Assistants… absolutely!
Over the years I have been in business, I find that I am still growing within my own business to reach financial stability and to make me feel an intense safety.
Some of the key areas I have been working towards and will continue to work towards to stabilize certain business areas are:
1. To track current outgoings and incomings down to the fine detail. Keeping these in an accounting software package or something as simple as an excel spreadsheet. Analyse the outgoings vs incomings to ascertain if your spending is greater than your actual income, and if it is you need to look at changing this straight away.
2. Creating a budget, whether it be weekly or monthly. Ensuring I stick to my budget and see where costs can be cut. It may be possible to cuts costs by outsourcing some work, downgrading online software you are using, changing suppliers or even something as simple as Changing the quality of paper that is being used in the office.
3. I am ensuring that all bills are paid on time. Mainly because the majority of suppliers these days charge a late fee if invoices are not paid on time. So it is important to ensure your suppliers are paid on time. If you don’t you will incur extra expenditure in late fees.
4. I actively research new suppliers to not only cut costs but then on-forward some of those savings to my clients. This is a win-win situation, I save money on services / products and my clients get a more cost effective deal which they will love me for.
5. I am also a great believer in offering referral discounts. I always offer a referral fee to anyone who refers clients to me and then offer the client a discount as a referred client. This not only means that the referrer keeps referrals coming my way so they can make passive income, but it also help the decision making process with the client as I immediately offer them a discount that my competitors more than likely will not offer.
The above are just some of the ways in which I like to ensure my business is on the right path to financial stability. I would love to hear what you think is important to create Stability in your business.