Understanding Working Capital Cycle in Small Business

Every level of working capital cycle you keep has its own implications on your business. Working capital cycle is used to illustrate the length of days it takes a business to convert its inventories into cash. If you are into manufacturing, you buy raw materials from suppliers, work on them and make it ready for customers to buy. Customers will either buy in cash or on credit. Then you collect money back from your customers. You must understand the effect of selling on credit to customers.  Generally, your aim is to minimise the length of your working capital cycle so that Continue ReadingUnderstanding Working Capital Cycle in Small Business

How to Increase Sales Without Extra Marketing Costs

You don’t need to break the bank in order to increase sales. Before I continue, I like to quickly mention that it is not enough to increase sales, each sales increase should also increase your profits. That is why small business should be very creative when it comes to marketing. As important as marketing is to every business, small businesses don’t have much funds to invest in it. This makes it difficult or impossible for them to compete with large companies. Large corporations can afford to spend thousands of dollars for the promotion of their products. But a small business that Continue ReadingHow to Increase Sales Without Extra Marketing Costs

Effects of Selling on Credit to Customers in Small Business

Pros and Cons of Selling on Credit on Working Capital. There will be a mix in your sales. Some will pay cash while some will buy on credit. Selling on credit is almost inevitable in business. Some factors will necessitate that you sell on credit. You may need to sell on credit because you want to maintain a closer relationship with the customers or as a result of the increased competition. It may even be that competitors are giving out credits. So, if others are selling on credit and you don’t, you may possibly lose customers to competitors. Before you Continue ReadingEffects of Selling on Credit to Customers in Small Business

Why Advertisement is Key to Business Growth

Advertisement is an investment and not just an expense. Some people see advertisement cost as an expense which can be done away with in business. Advertisement is not only important at the launch of a new business. If you want your business to continue to grow, you should not stop advertising. If a business is experiencing low revenue, there is tendency for the owner to look at possible ways to curtail the business expenses. This is logical indeed. But the type of expenses you cut or do away with will determine whether you will be able to survive the business Continue ReadingWhy Advertisement is Key to Business Growth

How 100 Dollars Investment Turbocharged My Revenue

100 Dollars investment can make the difference. Can 100 Dollars investment into my business ever make any difference? That was my reaction when someone told me that I just needed to make 100 Dollars investment to turn my business around. I had spent more than that before and my business never made any tangible progress. There is nothing frustrating as doing the wrong thing. Sometimes, taking a bold step in doing something new can be fearful especially if you failed in your previous approaches. Everyone is bound to make mistakes but some mistakes can be very costly. Right from the Continue ReadingHow 100 Dollars Investment Turbocharged My Revenue