Month: October 2020

Automation is taking the business world by storm, all hail to the new stream of algorithmic technology that’s accessible for everyone to use. Now brands, regardless of sizes, can create their own automated mechanisms to transform their venture into a more productive, effective, and profitable business.

In this blog, we’re going to cover some of the key steps to reconstructing your business with automation.

 

Choose The Tasks You Think Can Be Automated

Be careful, if you think of it as too obvious or simple. Selecting the right tasks is absolutely crucial and this is where most businesses put their efforts to a false start with automation – so don’t fall into the same trap.

First, you need to examine how automation works and what you can achieve from it because there are plenty of tasks that can be automated, but you probably shouldn’t. There are a plethora of tools for automating web design, translation, content writing, and everything else you could do if you are a business owner or a marketer – but most of the time all you do is insufficient.

 

So What Kind of Tasks Should You be Automating?

If you’re a business owner, outstanding payments are the most crucial aspect of running a business when it comes to streamlining cash flows. If you are looking to automate collection processes, the Udhaar app might be the right choice for you.

Udhaar is a free application for personal and commercial use. It helps you manage credit with customers and suppliers directly through your smartphone.

Udhaar app is an online ledger (like an online digi-khata or credit book) to record your outstanding debt, and send auto-reminders to customers to increase collection and cash flow.

 

Set Your Automation Targets

Spending on automation tools and investing time in establishing new workflows won’t make any sense if they don’t add profit to your business. So before you put effort into creating new workflows, please ensure you set definite targets that you can use to pave the way for success and refine your processes.

Be specific with clear goals, set targets for each quarter, and be on your way to gauge success.

 

Track Results and Refine Processes

Without specific targets and the right KPIs, you are going to have trouble measuring what sort of impact automation is having on your workflow. Essentially, you won’t be able to point out opportunities to define your automation and maximise results.

A simple alteration to your workflow can add thousands or even more to your profitability when you enable automation to multiply tasks to almost unlimited. 

 

Start Small and Build From There

The key to set up automation is to think big, start small, and build your business over time. Scrutinize your previous processes, track outcomes, and redefine your workflows for better results before you make efforts adding complex automation into the mix.

The said procedure is a lot more gradual but also gets faster to come to terms with. With a blink of an eye, you’ll be sharing your own blogs complementing about how high your conversion rate is thanks to your latest automation.

The best thing about retail sales is immediately getting paid after making the sale. The customer pays in cash or uses a credit card and the transaction ends right there. Unfortunately, the process isn’t the same for everyone, some businesses are different.

Credit requests or demands usually put you in an odd position, especially if you own a small or medium-sized business. Selling on credit to a client who has a good history is a good decision, provided your current cash flow can support it. On the other hand, setting terms with a client who has bad credit can go otherwise.

Always remember, the only thing worse than losing a sale is making the sale and not getting paid for it.

 

Offering Credit can be a Sales Tool

Offering credit to commercial clients can be an important sales strategy. It can help you close a greater number of deals, especially if you can afford to be more generous than the rest of the market. If utilized cautiously, credit can help you grow much faster and take things to the next level.

However, credit can also become a double-edged sword as you undertake additional financial risks – sometimes unnecessary. Unpaid Invoices from clients drag your finances and if you give credit to the wrong client on a bulk sale, the damage may be beyond recovery. Therefore, offer credit very carefully.

 

Who should be offered credit?

Offer a net 30-day deadline only to companies that you think can afford to repay in time. Examining this creditworthiness may appear difficult, but it is often very productive. Commercial credit reports on companies are easily available. Unlike consumer credit reports, corporate credit reports don’t require special permission.

The information in these reports is helpful. They accumulate the payment histories of your clientele and offer a way to determine if your potential client is creditworthy. 

At times, making the right credit decision is like hitting the bullseye, especially when the information is distorted. Thus, it’s not possible to be right every time. Your objective should be to manage risk and make informed decisions rather than eliminating all risk.

 

What if you can’t afford to offer terms?

The challenge that small companies often come across is the fact that offering credit creates cash flow problems. Non-payments and delayed payments often result in lost revenues. If you don’t have reserves sufficient to cover your expenses while waiting for payment, you’ll eventually run into problems. These problems can affect your business when it’s growing and derail your finances.

One way to solve this problem is to become a sword and hover over your client’s head. Not all of them but only the spoiled ones. One easy way to get your money recovered is to use the Udhaar app. This app is a blessing for Small retailers who usually trade on credit and have their payments outstanding. With the Udhaar app, you can send auto-reminders and customized reminders with a deadline and details of the transaction to your creditors and get your money back 10 times faster.

 

One last word of advice

If you have never offered credit to clients, you should start now. Start slowly, give yourself time to understand how your cash flow works, and be prepared to deal with sudden cash shortages. Lastly, start building a reliable cash reserve to tap if clients start paying slower than expected.