“PCG Business Bulldozer”
This month: Strategies for Start-Ups
This month we want to talk about services that benefit start-ups and fledgling businesses. However, many of these tips and techniques can benefit any business, at any stage of maturity:
Cash is the fuel for any business, and start-ups in particular have issues with optimizing cash flow to cover essential expenses such as payroll and rent. There are obvious ways to improve cash flow through pre-payment and aggressive collections, but there are other strategies you might consider:
1. Know your profits and expenses. You need to understand how much room you have in your profits before you can offer deals to customers and adopt new strategies to increase provides.
2. Bundle your products. Think of ways to add value without adding cost, and pass those benefits to customers in the form of savings or bundled value-added offers.
3. Create a back end product. Charge for additional services or product after the sale.
4. Promote repeat business. It’s easier to get a satisfied customer to come back for more than find new customers.
5. Pre-sell and offer cash discounts. An incentive to get customers to “buy now,” even if they need the product later, immediately puts cash in your pocket.
When an entrepreneur gets funding for his idea and gets the company of the ground, his first mistakes are usually in dealing with the minutiae of running the business itself. Either they spend too much time and energy trying to create back office processes that aren’t effective or, worse, they ignore them altogether. That’s why they need outsourced accounting. Read more.
Many start-ups begin by recruiting a CFO to help them navigate the fiscal requirements. Business owners want to get the CFO in place early to provide strategic financial insight, projection, budgets, and cash flow forecasts. In the case of start-ups, sometimes the CFO is recommended by board members. Other times he or she is chosen by the investors. But there are many reasons why it may make more sense to rent a CFO rather than hire one. Read more.
When you are launching a new company, staffing can be your greatest investment, and the decisions you make are likely to have a tremendous impact on the success of your start-up. However, many entrepreneurs enter into their new venture without a clear human resources plan. Read more.
Note that Pacific Crest Group also offers recruiting services to help start-ups find the right personnel to build their business.
This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions.
Copyright 2011, Pacific Crest Group, All rights reserved.