You have undoubtedly heard a lot of talk about financial stability since the term gets thrown around frequently. But, do you know what it means?Generally speaking, a financially stable business can survive a loss of a significant customer or team member, a considerable drop in sales, or other monetary problems that would put an end to other companies.Such a business will, of course, feel the consequences of the issue but will be able to move forward instead of shutting down.In other words, financial stability is what makes or breaks a business.This article will show you six ways of getting your business to be more financially stable, which should be the goal of any business. Let’s get right into it!
Build Customer Loyalty
Having a loyal customer base is a great way to ensure you don’t go out of business despite financial difficulties.A great way to go about it is to focus on making your customers happy because this will make them more likely to remain loyal to the brand.Data proves this point because 78% of customers stated they keep buying from a company that offers excellent customer service, even if it makes a mistake.Clearly, investing in your customers pays off. Clients satisfied with how you do business and treat them will not flee as soon as you’re imperfect, which will help keep your company operating even during bad times.On top of offering excellent customer support, you can make your customers happy by providing recurring payments. This payment method allows you to repeatedly charge money directly from your customer’s account, thus doing all the work for them.It might not seem logical, but studies show that 76% of consumers think an easy payment process is an important reason they remain loyal to a brand.Customers don’t want to waste time or energy on payments, especially nowadays when you can do it in a couple of clicks.So, think about offering recurring payments. They will make things easier for your customers but also guarantee that you’ll have recurring revenue.This is how these payments work: the customer has to give you their payment information once, and you will charge them weekly or monthly from that point on as long as you are providing a product or service.An example of a top-rated company that offers recurring payments is Netflix, with over 213 million active subscribers worldwide.Some companies connect the payment information manually and then save it in spreadsheets or similar programs, which takes time and effort. If that just isn’t viable for your company, you should look into recurring billing software.The software will charge your customers automatically according to the agreed timeframe, and neither you nor the customer will have to put in any manual work.At the same time, you’ll be getting exactly what you signed up for: customers will get the product or service, and you will get paid.The best part about it is that you know you can count on these recurring payments every week or month, depending on what you arranged with your customers.
Diligently Track Your Payments
A significant aspect of being financially stable is tracking your payments.You simply have to know who owes you money so you can charge them. Otherwise, you may be bleeding money without realizing it.If you’re still managing your invoices manually or on paper, you will have a hard time tracking them.Sure, you can hire people to keep track of your invoices and payments to make the process easier. However, you’ll spend a lot of time and resources hiring, training, and paying employees to do something that billing software can easily do for you.Software designed specifically for payments will give you a clear overview of invoices: paid, pending, unpaid, which will help you determine your revenue.The point of tracking your payments is understanding your cash flow. Once you have a list of unpaid invoices, you can contact those customers and try to charge them again.Invoicing software can even send automated payment reminders until the customers pay.Even though these reminders work, they don’t guarantee payment.James Stefurak, the Invoice Factoring Guide’s managing editor, thinks you’re more likely to get paid on time if you offer an incentive.