To build a successful business, you must spend at least part of your time focused on building wealth for your business. Wealth is different from profit. You can have a relatively profitable business, yet it may not have the level of wealth that is needed to sustain that business. How do you build wealth for your business? Here are some tips.
Loyalty Matters
While it’s essential to bring new customers and clients into the fold, for your business to be wealthy you have to focus on building loyalty. According to Forbes, it takes seven seconds for someone to form an opinion about your establishment when they enter for the first time. That first impression will determine if they will patronize your establishment and if they will be back.
Building wealth heavily relies on repeat customers. Being able to count on a steady stream of income from a customer is more valuable than earning a new customer. Focus some of your energy on customer loyalty and keeping the customer base that you have satisfied.
Be Prepared
Building wealth starts with protecting your wealth. According to Marcus Networking, about 58% of small businesses and mid-sized businesses only test their disaster recovery plan one time a month, and about 33% never test it. Many don’t have a disaster recovery plan at all.
If you are sitting there thinking, “what is a disaster recovery plan?” you have some catching up. What would you do should a disaster hit your area? Do you have a plan for business continuity? You must plan for every crisis. If you don’t, you risk losing everything you built.
The Proper Insurance Coverage
To grow your wealth and protect it you shouldn’t skimp on insurance. Business insurance protects your business, employees, and your finances. No matter your industry, the risk of an accident or injury is high. According to Collins Concrete Coatings, about 22% of slip and fall accidents result in about 31 days on average of missed work.
Accidents happen and, without the right amount or type of insurance, they can easily bankrupt your company. Never cut corners when it comes to having the right insurance. Meet with an insurance expert that specializes in small business insurance to ensure your business has the best coverage option for its needs. It’s a meeting you will never regret having.
Consult With Professionals
Successful businesses take a team to build. Don’t be afraid to get advice from a financial advisor that specializes in helping small businesses build wealth. Getting guidance from an advisor can help you to save money on taxes, take advantage of tax planning strategies, and find ways to build wealth for your business.
Financial planners bring a lot of value to the table. You should also have an accountant on your team to manage your financials. It’s a good idea to take advantage of professional services that are focused on helping you build wealth.
Take Time to Reassess
As your business grows, your financial goals should shift. At the beginning of your journey, you’re likely hyper-focused on earning enough to move on to the next stage. Changing how you look at where money should go and where it needs to go is a shift many small business owners have trouble making.
In other words, once you are out of the survival stage for your business, you will need to rethink your business spending. Reevaluate frequently where you are investing, and whether those investments are proving fruitful. Once you have reached a certain level of success, it’s time to tweak your business plan to focus on building wealth.
Wealth doesn’t just happen for a small business, it’s something that you need to plan for. Revisit your business plan and see if you need to make some changes. Taking action today can allow your business to flourish instead of just making it by.