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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Entrepreneurship

Entrepreneurship

The Best Financial Tips for Growing Business as a CEO

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 It is always difficult when you are trying to bring your idea into the real world. As a founder and young CEO, you get a lot of questions about whether your business will thrive or not. At this level, you are doing almost everything by yourself. You have to plan, build and scale your business using the minimal available financial resources. Furthermore, you must be ready for criticism from people. It calls upon a strongly focused mindset to keep your startup growing. You must know how to deal with all this pressure from all sources. Also, ensure you attract and convince clients that the product or service you are offering is the right one. It takes time before a person trusts you, a report by Forbes. Many startups will have their best idea in the market, but after running for a few days, they die. Such occurrences happen due to weak reasons like fear, untrust, pressure, or lack of capital. Here, we narrow down the best way CEOs can implement to keep their business growing.

Foster a good relationship with Partners

As a CEO, there is a need to put across strategies on attracting leads into real customers. Don’t rush in making campaigns and branding when you have a small budget. Growing sales takes a lot of time. Focus on building a strong partnership with other businesses and popular entrepreneurs. They will have a positive impact on growing the business. This is more than mere networking with the local people. Approach large brands and companies that offer the same product or service that you have. Set up a share of the win-to-win goals. Let them see how they will benefit in the end. Of course, no company is ready to transform their customers into your business without benefiting.  Here, you exchange services with the company without physical capital. A good partner will expose your startup to their clients, hence driving more organic traffic to the company.  For example, if your company is selling new brands of shoes made from natural resources. You might decide to approach large companies like Nike or Adidas to get their attention. Let them be aware of your new designs. If it is good, they will back your idea up. At times, they might even decide to sell your product using their brands. Also, you can employ one salesperson who will collaborate with other new partners to improve the sales. However, it is recommended to ensure you sign the deal with partners for future reference. Don’t sell your ideas to those partners. 

Scaling your Financial Infrastructure

If you haven’t been into the business class, it might sound hard to set up the business alone. But many CEOs have done so. Using simple bookkeeping is helpful. Write everything you do with your money—plan to avoid financial problems. However, as the business matures, you need to employ complex financial infrastructure tools to scale the business. Here are the best tools you must have in your startup:

  • A real and detailed model where you record the monthly income, cash flow, and expenses. This might be helpful when working on goals for the following year.
  • An accurate dashboard where you can look for the performance of the business over a certain period.
  • A small accounting book to keep track of the requirements. It will help in coming up with accounting solutions for the capital available,
  • Set up policies following payroll, loan payments, and partner capital. Let the internal control book sheet draw up models that can help to predict the financial future of the company.

 Such documents will help you as the CEO grow the business. You get to realize and notice internal and external problems affecting your startup. It will impact the final decision of the board to come up with favorite plans for growing the business. It acts as a goal reminder and a forecast for future decisions.

Expanding the business at a slow pace: Hiring plans

Hiring the right candidates with motivation like yours might be difficult. That’s the reason why many founders will insist on being the CEO because they are goal-oriented. So, selecting the best person to fit a job is another job. Getting the perfect match might be too costly.  Yes, you might have a monthly salary to give them, but that is not enough. Employees want bonuses, smart equipment, and vacation time. Others need a break twice a year, which will seem like a waste of time.  Before looking for candidates, again, you must employ a recruiting HR to manage the department. For sure, they will help you a lot. Most human resources have experience in knowing the right employee with the same energy as the startup requires. If you don’t have enough capital to do so, it’s good to work with contractors. Let them be available only whenever you require their service. This will cut off some expenses. 

Financial planning, money -image from pixabay by stevepb

 In situations where you want to run social media marketing, freelancers can do the job. Let the marketing department have one full-time employee with a bunch of contractors that will be useful in growing the business. We have a lot of platforms where you will get the best freelancers. These include Upwork, Fiverr, PeoplePerHour, and freelancers.com.  When it comes to CFO, the burden is worse. The average annual price is almost $325,000 in startups like SaaS. This is much more than the expected price. So mixing between full-time and contractors might reduce the burden. You require CFO to serve as a guide and adviser in your company. This is a sensitive department that should never be missed in your growing business. 

Put more pressure on yourself

In fact, in most situations, this comes naturally. As CEO, you know the reason why you are running your company. In a growing startup, there is less capital. This problem has resulted in the closure of most startups. The most experienced CEOs have a slogan that ‘It will come as soon as you think.’ If you focus on growth and leave the financial department, it might become worse. Bring a new employee on board who has experience in economics and financial engineering. They will narrow down the best way to use the available capital. Here are the two best things to do: Get familiar with other sources of capital. Don’t think about what the business might bring in during the first day. You must look for various other ways on how you can get money. You might decide to borrow a loan, which is okay, but what if the business doesn’t bring the money back? Another way is to approach investors who, at times, might turn your offer down. Explore various ways to make sure you get things in order. Formalize marketing and business plans If you are lucky to get investors, they will ask for your plans and goals. Most of them will dwell on knowledge about how you will monetize your business. Their final goal is to have a piece of mind on the return of their cash. Write down your best plan. Make it formal or let someone professional write it for you. This should come earlier before you start any fundraising for the pre-seed season. 

Goal blindness: stay focused and consistent

Although you are doing almost everything, stay focused as a CEO. All the pressure from a variety of departments can be overwhelming. Make sure the business works towards a set mission and vision. Here are some of the key requirements to possess:

  • Have reliable clients that will come during peak and off-peak season to buy your goods or services
  • Your product or service must be a solution to society to sell more. Focus on building sustainable development goals.
  • Employ quality candidates across the board who can manage the available resources to the maximum. Let them be aware of their goal in growing a business. Arrange meetings occasionally to remind them about goal blindness.
  • The best planner will have future goals and how to improve the business inches of increases in profit margins. This will ensure that any minor profit has a positive impact on improving the business.

 Be strong even during the worst moments. It’s okay to feel like the company is not making any step. Let the team know that you won’t give up despite the strong winds. It’s your decision when it comes to deciding what you will do with your private company. Some CEOs decide to sell it to large organizations, while others will let it go public. Don’t listen to outsiders much more than your team. You have a team, so let their ideas add up. If you are facing a problem or predicting something, they have to help you come up with the right solution. It’s all about having good communication skills while running and growing the business.

Bonus

It’s always a crucial and sensitive moment when a startup goes into a ‘growing mode.’ There is much that is needed to move forward—everyone’s role in the business matters. Have the best strategies to prepare you for the next big thing. You have to expand your mind to reduce the known risks. Also, utilize the small profits fully to avoid any wastage. Let the last coin count. By doing so, you will expand your growing business.

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