To make your company more profitable, you need to use your resources strategically. You also need to be conscientious about how growing your business can increase your risk exposure. Here are some key things that you need to consider as you bring your company into a new phase of its development.
1. Invest in Technological Resources
Enhancing your company’s technological infrastructure can help you optimize efficiency while you ramp up operations. To expand the scope of your business’ sales or services, you need to be smart about choosing tools that can make it possible for you to increase your output. You may need to be ready to handle more web traffic or perform more tasks on the programs and networking applications that you use in your day-to-day activities.
Getting Prometheus monitoring tools will give you access to real-time updates when you’re having issues with performance or functionality. Monitoring metrics can also provide some insight into the efficiency of various areas of your workflow.
2. Protect Your Company Against Cyber Criminals
Online threats to businesses are pervasive, and no industry is immune to the relentless tactics of cyber criminals who are trying to access their data. They are after your business’ financial information and your customer’s personal data. It is imperative that you implement cloud security protocols and use encryption tools to protect your communications.
A comprehensive cyber security program with a strong emphasis on data protection can proactively prevent breaches, but you have to be ready to mount a swift response in the event that your defensive measures fail to stop a cyber attack. Using monitoring tools that alert you to breaches as soon as possible and having remedial resources at the ready could mitigate the fallout from a security breach. A cyber insurance policy could be a crucial safeguard.
3. Build Up Your Business Credit Score
Your business credit score can have a determinative role in your capacity to grow. With a formidable credit score, you can qualify for lending and financing opportunities geared toward facilitating development. If a poor score is dragging you down, you may struggle to qualify for a small business loan or have to pay high interest rates on new lines of credit. Using a service like Creditsafe will allow you to see your current business credit score report and discover how you can build your score up.
Building an excellent score takes time and strategic financial management practices. It is imperative that all of the outstanding tradelines on your credit report reflect consistent timely payments. Also, you have to maintain a good credit utilization ratio. One good trick to improve your credit utilization ratio is to request an increase on your business credit cards. Instead of using more of your higher available limit, continue using the same amount of credit that you are now. Because your total available limit is higher but you’re using the same amount, your overall credit utilization ratio is going to be lower.
Make it a point to monitor your credit regularly to track your progress. Reviewing your report rather than just taking a glance at your score will give you a chance to catch and address mistakes before they represent a problem.
4. Revise or Amend Organizational Documents as Necessary
The operating agreement or articles of incorporation that you created at the time that you grow your business may cease to accurately reflect your business’s current needs or actual management practices. However, it is important that you practice full compliance with your governing documents. Make revisions or amendments that support your goals for growing your company while sparing you from potential legal complications.
When you’re pursuing growth, you need to be forward-thinking about taking steps to sustain it. Planning ahead will help you ensure that you have the support and protection that you need to achieve your development goals.