As a matter of better managing incoming workflow, it may be necessary to apply for a working capital loan. The day-to-day expenses of keeping your company running could end up being too burdensome both in terms of time and money. When signing new contracts and bringing on new clients, some of the more administrative tasks may be swept to the side because the majority of your focus will be on making these new business ventures a success. Further, when you become too consumed with new contracts, your existing clients may be put on the back burner and viewed as less of a priority.
While this may be a natural way to conduct business, it could also put you at a disadvantage because your older clients may start to notice less communication and productivity coming from your end. This could cause you to lose contracts and essentially enter a cycle of continually finding new business while simultaneously losing others.
Instead of having to choose or sacrifice one over the other, you should craft a plan that allows you to handle the entire spectrum of clientele with dedication and devotion evenly distributed. Here are three ways you can manage such a task:
- Find room in the budget
The first goal is to identify whether there is enough room in your budget to effectively coordinate both new and existing business. While new contracts will inherently bring in new sources of revenue, this additional cash flow may not be immediate depending on how the contract is structured. It’s also important to note that you may be required to front your own money to purchase new equipment that is needed on the job site. This is also an added expense that can drain money from your budget and make it harder to spread resources across all clients. The answer could lie in freeing up as much capital as possible by opting for less asset ownership. This means instead of owning all of the equipment, trucks and materials, you can choose to lease these items. With repayment plans spread out over a period of time, you’ll have more cash to use in the near term while you’re trying to successfully kick off these new clients. By removing the burden of ownership, your money will go further and provide you with enough time to manage all tasks until the new streams of revenues start coming in.
- Prioritize immediate needs
For the most part, the largest contracts deserve the most attention because they are the backbone of your current business model. It doesn’t make sense to devote too much time and resources to areas that aren’t providing a proven return on investment. That’s why it’s necessary to create a plan that prioritizes the most pressing needs over those that can wait until another time.For instance, deadlines that are three months away shouldn’t take precedence over work that needs to be completed tomorrow. Despite the rush to sign new contracts and grow your business, if you’re not handling the needs of your existing clients in a timely manner then you could be spinning your wheels. After agreeing to terms with a new client, revise your business plan accordingly to account for how you will confront this change.You may need to apply for a small business loan or hire new workers to keep up with incoming workloads.
- Decide what works
As is the case with any business strategy, things will never go strictly as you planned. There are simply too many variables that can throw off your budget or project timeline. At the end of the day, you should be pushing to expand your company, which means offering more services and reaching new customers. But if you’re having to shed older contracts to do so, your plan may not be profitable in the long run.However, in some cases, it could be worthwhile to look at the benefits of focusing more time on new business, particularly if there is great potential for future growth. In addition, sometimes surrounding markets are more profitable and you may have to aim for clients outside of your immediate community to bring in higher revenues. As a result, continually working with high-revenue clients is a strong strategy moving forward. If your business isn’t at the point of expanding to a new level, then maintaining your current position and contracts would be more appropriate. The point is to take a step back and reassess the direction of your company, hopefully allowing you to make a more poignant decision of its future.
National Funding can help your business with quick and easy funding through merchant cash advances. Also, if you’re in need of equipment financing, National Funding can help structure a payment plan that meets your needs and doesn’t hurt your company’s growth prospects.