There are several techniques to building a strong business . Building a business that can withstand the test of time requires strategies that are seldom implemented by other business owners. Business owners that utilize these secrets can go through any economic condition and still maintain growth and sales. These businesses use secrets that a lot of business owners don’t know or don’t implement and because of that their businesses do not flourish. They are constantly in a feast or famine mode depending on the economic cycles. Utilize these secrets and build a strong successful company.
Diversify your business structure.
This is a techniques used by Richard Branson and Donald Trump. Most often someone who opens a business lets say a car dealership, will most likely open another car dealership because this is the industry they know and understand. However, this leaves you vulnerable to the economic wave. If the economy slows down or turns sour and both car dealerships sales are slow, you have left yourself wide open for catastrophe to strike possibly losing both businesses . This happens because you do not have any income stream outside of the industry you are in.
As with Billionaire Richard Branson, he owns Virgin Media and Virgin Airlines. These are two completely different businesses in two different industries. When one industry slows down the other industry produces income. As well, his Virgin media can supply the in flight entertainment for his airline. Because he diversified his business and has two businesses in non related industries, his business structure is more safe and stable for long term growth.
Have a large sum of liquid cash.
As your business begins creating cash for you, make sure you keep a lot of actual cash in your cash account. Make sure your receivables are not sitting past 60 days without even a payment plan. When you have a store of cash you protect yourself and are strong on paper. Does your company have its own savings account that you pay into monthly like a bill.
Make sure you pay off debt quickly.
Low or no debt and cash stores make your business able to withstand a downward economic cycle much longer and that helps you maintain strength when the economy is on the up swing too. If you by a new innovation for your business make sure your accounts payable payment plan offers you a discount if you pay early, then take advantage of the early payment discounts.
Examine your business and get rid of unnecessary costs
Such as advertising and marketing cost. Save money wherever you can. Learn to use joint ventures instead of advertising. Joint ventures are the fastest growing business trend in the world right now. If you want to remain strong in your industry, you must learn how to utilize them. Competition marketing is dying. Cooperation marketing and Social Marketing (not social networking) are the business acumen of the next 100 years. A joint venture network can bulletproof your business through any economic storm and help you build alliances that produce wealth vs. spending on advertising that does not guarantee results. As your company gets really big maintaining these business builder secrets and ensure that your business will live a long and healthy life.