How to Future Proof Your Business Finances
by Mashum Mollah Finance 16 February 2020
In the business world, change is the only constant. In order to future proof your business finances, you need to prepare for changes that might come. Some of the changes your business may experience include an aging workforce, an increasing number of millennials, cultural diversity, the increasing importance of e-commerce, business automation, and the increasing importance of the data economy. As a company, you should analyze the likely impact of these changes on business finances and what to do to prepare. Here is how to future-proof your business finances.
Grow Your Partners, Not Transactions:
Most businesses make the mistake of assessing everything in terms of the number of transactions. What they fail to understand is that prioritizing clients and partners is essential. Several companies go for contract CFO services to help them set formidable revenue streams, strike productive partnerships with stakeholders and help them grow their overall business. hiring a good CFO is essential as it helps the business understand its cash flow, create financial data banks, and informs the higher management of risks.
In the future, it might be difficult to make money from transactions. So, don’t focus on increasing the number of transactions, since that might not be possible. Transactions work well only if they are many. For instance, having a billion transactions affords the opportunity for you to become a billionaire. However, how long will you need to have that many transactions? That’s why you need to pay more attention to building partnerships with outsiders that can help you gain more business within the shortest time.
Enter the Global Market:
The business world continues to be more globalized. It is, therefore, foolhardy to insist on operating in a localized market. The key to future-proofing your business finances is targeting many people in different places in the world. But you can’t pull it off if you do not have a business geared towards solving some of the biggest problems affecting large groups of people. The key is to come up with a product that’s going to solve real problems affecting real people. If you can find a way to help a billion people at the same time, you will definitely be on your way to becoming a billionaire. If you are looking to scale, you need your finances in order. Hire a fractional cfo to oversee all the financial tractions to ensure you are on the right path from the word go!
Strive to Offer Experience and Not a Product:
With the growing competition in the business world, it will be hard to offer a product that’s unique to your company. Even so, shoppers are less likely to buy from a physical store. With the increase in the number of online shoppers, a business should focus more on customer service and giving visitors to your website a unique user experience. Failure to give your customers a delightful experience might mean less profit for your business. In the future, it is only the businesses that can provide a great experience to their customers that will make a greater profit.
Improving Business Structure:
Traditional businesses feature the command-and-control hierarchy, which has for many years worked very well. It might not remain that way for long. In the future, businesses will have to be structured around smaller teams, which will need to focus on the goals of the business. Instead of the top-down horizontal structure, future businesses will be better off with the horizontal structure. With that, they will be able to stay connected to each other and to business goals, the key of which is to improve the finances.
Innovate and Leverage Technology:
Innovation is the only way to ensure you have a constant flow of customers to your business. It is important for customers to have a product that actually serves their needs. To innovate, you have to change the way you do things. In short, you should strive to make a positive change to workplace practices and culture. That may involve asking the customers and employees about the changes they might want to see. Using their feedback, make the necessary changes to future proof your business finances. Innovation may also include the greater use of technology in business. Consider building a mobile-responsive e-commerce website as well as having an increased experience on social media.
With these five tips, future proof of your business finances shouldn’t be such a hard thing. Not only will you be assured of more customers but also improved profits. So, why don’t you start future-proofing your business from today?