One small step for you. One giant leap for your business.
Working capital is a consummate method of judging a company’s operational and financial standing. The better its condition, the better positioned a company is to focus on developing growth and overcoming obstacles. How can you ensure your company’s working capital is steady and healthy? Here are 8 easy ways:
1 Add value
Understanding the ins-and-outs of your customer’s business puts you in a unique position to offer a value-added relationship. Start looking for additional ways to help your customer. They’ll most likely become more loyal. Forming a strong relationship and understanding their business needs will go a long way in strengthening and growing your customer profitability.
2 Less can often be more
Learning to prioritize which customers get your attention first is crucial. With apps and tools at their disposal, high-maintenance customers are more fickle and less likely to stick with you in the long run. While it may seem odd, eliminating these customers will free valuable time that can be used to grow profitable, loyal customers.
3 Become pickier when it comes to new customers
Profile your loyal, most profitable customers to determine which characteristics they have in common, and use those characteristics as criteria for determining whether new business leads could be good customers. Unless there is tremendous upside potential, stick to these business standards and walk away from those prospects that don’t measure up.
4 Be a smart negotiator
The one thing for certain in an improving economy is that there will be more competition for almost everything. From truck supplies, to vendors, to customers, there will be more people vying for business, so you’ll need to learn to become a good negotiator to get supplies at the prices you want and customers that pay the rates you need.
5 Decrease your costs and expenses
Look for ways to lower costs by reducing fuel costs and making life on the road easier and more efficient for your fleet. Pay cash versus using a credit card to save at the pump. Better yet, get a fuel card to use for fuel discounts. Consider purchasing a new truck and taking preventative maintenance measures to reduce costly breakdowns.
6 Respond to customer needs and messages quickly
If you get an email or voicemail from a customer, respond immediately. Even if you can’t provide them with what they need right away, let them know that you got their message and set an expectation for when you’ll deliver.
7 Plan your work and work your plan
It’s important in the transportation and trucking industry to have a clear roadmap for success (no pun intended). Start developing a three year plan that takes into consideration expanding or replacing your fleet as they age and depreciate. You’ll also want a plan for growing your business, which could include growing your existing customer base or finding additional business. This is more easily accomplished with a smart, written plan.
8 Manage your cash flow
Cash on hand is imperative to growing your business. Without capital, you can’t invest in equipment or hire new employees. While bank loans are an option, a great simple way to infuse cash into your business is to take advantage of alternative financing options, such as a working capital advance. Working capital is a quick and simple funding option that provides a lump sum cash infusion based on your monthly revenues and you don’t have to jump through hoops to get it.
Fast, affordable funding for your business.
No matter your current business size or credit situation, we have financing that will fit your needs.
Use funds to:
- Meet payroll or tax obligations
- Cover operating expenses
- Expand or grow your business
- Any business need
At eCapital, we’re here to get you the funds you need when you need it most. There’s absolutely no obligation for a free quote. It’s simple, fast, and free to apply. Contact us today to see how we can help!
Call 888.450.2580 or fill out the form.