Tip #22: Re-evaluate your business - and yourself - to stay ahead

The world of business never stands still; to stay ahead, your business needs to evolve as well.

Updating your systems

Whether it's making things happen behind the scenes or ensuring that customers receive products or services on time, having the right system is essential for your business's growth and success. So it's vital that you evaluate your system and the technology behind it on a regular basis to ensure that they are functioning smoothly. If technology isn't your personal area of expertise, consult a professional.

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Re-evaluating your processes

As your business grows you may need to develop new processes or adapt existing ones to meet your evolving needs. Your business might benefit from:

• Reviewing your suite of banking services to ensure you have the credit you need available to grow your business, convenient pay options in place, easy access to your accounts and cash management.
• Budgeting procedures that help keep costs controlled, properly allocated, and charged back to the client where appropriate.
• A process to monitor receivables and collecting on accounts that are past due.
• Having a tracking system to ensure that customer requests are received, assigned and fulfilled.
• Quality control processes that help you maintain the same high level of customer satisfaction as more people become involved in the business.
• Innovative marketing initiatives that can help you get and keep customers.
• Regular management or employee meetings to report on the status of business activities.

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Tip #23: A good credit rating really makes access to credit easier

Establishing and maintaining a good credit history takes time. Paying credit obligations on time will help you develop a good credit history and will enable you to obtain additional credit in the future. Apply for a business loan or business credit card to establish a credit history for your business. Then build a track record!

If you have problems establishing credit, you may wish to ask a person with established credit to co-sign an application for you. This allows the creditor to base the decision on both applicants' credit histories. Please note that a signer and co-signer are equally responsible for repayment of the debt. Payment history on this type of debt may be reflected on both parties' credit reports. Once timely payments have been made on the account, you may again wish to apply for individual credit.

Once you've established your credit rating, be sure to keep it spotless by:

1. Consistently pay at least the minimum amount owing on your debts.
2. Pay bills by the due dates.
3. Ensure that your credit report is accurate by contacting the credit bureaus:
   • Equifax:
     1-800-465-7166, www.equifax.ca
   • Trans Union of Canada:
     1-866-525-0262, www.tuc.ca
4. If you find a mistake on your credit report, have it corrected immediately.

If you are declined credit, find out why. You could be declined for various reasons including not meeting the creditors' minimum income requirement or not having been at your current residence or job for the required amount of time.

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Tip #24: Big plans can bring big benefits

Here are some key benefits of growing your business:

Improved access to financing

A growing business may open doors to financing. As your business assets grow, you may be in a better position to borrow against them, leveraging your success to access funds you need to finance growth.

Decreased costs

Your growing business can benefit from economies of scale. For example, you can spread fixed administrative costs over more business activities.

Enhanced reputation

As your company grows, so does its reputation. That can lead to more word-of-mouth opportunities and more customers. It can also enhance your relationship with suppliers, so you can negotiate lower prices, better payment terms, volume discounts and preferred treatment.

Increased personal wealth

A prosperous business will generate more cash flow, which, in the long run, may mean higher dividends paid to shareholders or a higher pay-off for you. It will also have a higher value to potential buyers.

Higher appeal for good employees

Highly skilled and motivated employees are attracted to fast-paced, growing businesses. As your business gains a better profile, more of these employees will come to you looking for a stimulating and challenging work environment.

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The content provided here is for informational purposes only. You should consult your own professional advisors when implementing any strategy to ensure your individual circumstances are properly considered and that your actions are based on the latest available information.