No business enterprise can survive without adequate financing, profitability, and future financial projections. That’s why it’s vital to have a future financial plan for your company and know where to turn to when you need business loans, like ITIN loans.

Why is it essential to secure a financial future for your business?

Many businesses tank due to a lack of a clear financial plan. Planning and projecting your business finances for the next 5-10 years can help you avoid financial pitfalls that can spell doom to your business.

Securing a financial future for your business has the following benefits:

• Win investor confidence: A financial plan for future growth and expansion shows investors like Axximumfunding that you know what you are doing and where your business is going. That puts you in an excellent position to secure small business loans from lenders.
• Establish future profit potential: Future financial projections help you analyze and establish how profitable your business will be in the future, then set milestones and plans on how to get there.
• Balance cash flow needs: With a plan in place, you know the cash flow you need to float everyday business expenses. You can reinvest the excess cash flow to generate more revenue.
• Plan for emergencies: You can plan early and set a contingency fund to help solve unexpected issues that may threaten your business.

• Reduce borrowing costs: Instead of making a last-minute rush; you have time to shop for low-cost loans from reputable lenders.
• Keep everyone on the same page: With clear financial targets, staff and investors know what to expect, and everyone works towards the same purpose.

Five ways to adequately make your company profitable

If you are to secure your company’s financial future, then you need to ensure that your business is sufficiently beneficial. To achieve that, you need to reduce costs and widen your margins. Top ways to keep your company good include:

Negotiate with suppliers

You have to learn negotiation skills and develop bargaining power to build a profitable business.

Reducing the cost you source for goods/services is a great way to widen your margins. Negotiate for discounts from suppliers in exchange for bulk purchases. If you are dealing with contractors, ask for lower rates.

Get quotes from a few suppliers or contractors and work with those who offer attractive discounts or have lower hourly rates.

Getting the best deals with suppliers increases your gross profit. When the books are finally balanced, you end up with more money in your business account.

Revise your prices

Fear of losing customers is a top reason many businesses sell at a loss. Don’t fall victim to that. If you haven’t revised your prices recently, go ahead and do it.

There are many reasons why customers buy from you, and the price is not the only one. Quality of goods/services, convenience, trust, consistency, and strategic location are just a few.

Customers are always willing to accept higher prices in exchange for all of the above or a valid reason. Recall that your business generates 80% of its revenues from 20% of your loyal customers.

 Maybe, the few customers who will quit if you increase prices are the ones that cause you the most stress with payment.

Increase sales

You can increase sales by increasing your customer base or selling new products to your existing customers. The trick is to increase sales without a significant increase in the cost of delivering those sales.

Here, you may want to maximize the resources you already have to their full potential. Instead of new hires, get your sales team to generate more sales, and instead of opening an extra branch, take advantage of online channels to increase foot traffic to your existing premises. 

In short, learn to fully utilize your internal capacity to maximize profits at minimal costs.

Sell higher margins goods

Identify 20% of your products/services that generate 80% of your business profits and capitalize on them. Keep phasing out products/services that are losers.

Reduce fixed and variable costs

Fixed and variable costs take a huge chunk of business revenues, and if you can cut them, you’ll have more money in your back pocket. 

Negotiate with your landlord for a rent reduction, or relocate your business premises to reduce rent. Again, invest in technology to streamline business operations and automate labor-intensive tasks to reduce operating costs.

Outsourcing fulfillment to reduce inventory carrying costs and fulfillment expenses is also an excellent way to go.

Secure your business finances with ITIN loans

Knowing where to get working capital within a short call is part and parcel of securing your business finances and keeping your business profitable. 

Thus, you need to partner with reputable lenders who can fund you quickly so that you can grab profitable or expansion opportunities when they arise.

Even a few lenders offer ITIN loans to foreigners without a social security number. Visit the link in the intro to know about ITIN loans and how they work.