The financial situation of your company shows clearly the way the business is going. The value of your business is pretty much shown in your financial statements.
Keeping an eye on your financial statements including the income statements, the cash flow statements and the balance sheet, is essential. Knowing your numbers and understanding what financial aspects you need to focus on will take you a long way ahead. You will be able to make well-informed strategic decisions that will lead you to increase the value of your business.
But there are also other, non-financial ways that you can embrace in order to get your business ahead of the competition, like the following four:
Build Relationships With The Customers
If you have paying customers and this number is growing over time, you are doing things right. Monitor not just the growth of the customers, but also the level of satisfaction. Bet on providing excellent customer service. Having happy paying customers, who are returning to your business and recommending it to others, is a valuable asset. Build relationships with your customers, show them that you care about them, and they will turn to loyal brand advocates, which increases the value of your business.
Empower Your Employees
Looking at your business as a one-man-show won’t take you very far. The employees you hire more or less determine the pace of growth of your business. The better talent you hire the better results you can expect. But you need to make sure that your employees are devoted, motivated and empowered. Strong teams increase the value of the company. Take the hiring process seriously, look for people, who have the right skills and the right motivation, monitor the employee feedback on regular basis, and do your best to retain your most valuable employees.
Build Strong Long-Term Strategy
Have a long-term strategic plan that includes well-defined goals and the ways to achieving these goals. Introduce the strategy to your employees, your partners and investors. Discuss with them the ways you can achieve the goals faster and more effectively. By having a clear view over where you want to be and how you are planning to get there, shows that you are here to stay, shows your clear intentions to keep the company moving forward, which proves your long-term potential and ambition. Having well-defined long-term strategy increases the value of your business as it fosters innovation, keeps the employees focused on the goal, proves to your investors that you are serious and increases their trust in you, keeps your customers comfortable with the fact that your product will be available to them in the long run, and so on.
Just because you are happy with the numbers that you see on the financial papers, it doesn’t mean that you should get too comfortable. Don’t get distracted by the money flow and keep your focus on getting better. Continue to invest in innovation, in talent, in technology. Find out ways to improve your service, to increase the convenience and to outrun the competition. Businesses that invest in innovation and improvement are more prepared for the surprises of the future. They aren’t waiting for the things to happen, they make things happen!