HashMicro | Singapore ERP Software Blog | Cloud ERP News
HashMicro is a leader in Singapore ERP Solutions company providing a wide range of solutions, ranging from Accounting Systems, Inventory Systems, Human Resource Management, CRM, POS, School Systems, Booking Systems and many more.
When starting a retail business, many entrepreneurs dreamed of raking profits within months, or even weeks. Unfortunately, a lot of entrepreneurs with such dream often end up disappointed.
There is no short cut to success in the retail business. Everything must be done through hard work and a lot of patience. Even though, no one can guarantee that you will definitely be successful in this line of business.
Besides hard work, successful retail entrepreneurs always prioritize strategies before running their business. We have discussed five strategies in the previous article, now we will discuss five other strategies.
Train your employees
Hiring employees from competitors with a myriad of experiences is the method done by many retail companies. But more often than not, the employee is having difficulties adjusting to his/her new work environment.
This happens because the ‘best’ work method to that employee is not necessarily what is ‘best’ in your company. Therefore, the best way is to train your employees until they’re getting better at their job.
This strategy seems to be time-consuming at first, but this the best investment for your business. It’s cheap, and training your employees can also increase your employee loyalty to the company, and ends up growing your own company.
Offer the best products
If you getting loyal customers who are willing to pay whatever price you offer, then you need to offer them the best product you have. They don’t need alternative products, which are cheaper but with lower quality.
Therefore, choose the best line of products and place them in a place that is visible to your visitors. This will make your retail business get a special place in the hearts of your loyal customers better than your competitors.
Create a seasonal marketing plan
At certain moments we can find the demand for a product increased dramatically. For example in the Ramadan season, where sales figures for various types of clothing store skyrocketing. You can use this moment to boost your sales figures.
Not only in the clothing store, but this strategy can also be applied to various other lines of business, such as service companies. With a targeted marketing plan, it is possible that your sales figures will be higher than usual.
Engage your customers
Until now, what do you usually do when a customer comes into your store? Greet them? Ask what are they’re looking for? Is that all? Then don’t be surprised if the customer won’t come to your shop anymore, because the service you provide doesn’t leave any impression at all.
One way to give a strong impression to customers is by engaging your customer. Establish good communication, not just talking. Ask what they like, and providing recommendations that are in accordance with the customer’s preferences.
Invite them to come again
After being greeted cordially when entering the store, being served well during shopping, the last step you must do to leave a deep impression on your customers is by inviting them to come back to your shop later on.
Saying thanks with a smile is common. But you can do better than that. Thank them for their purchases and invite them to your shop again in the future. Friendly, engaging and memorable.
The ten strategies above are very effective for a retail business, or for those who want to grow their business. Do it now, and do it with discipline. See the results that shortly afterwards.
For other tips and tricks about developing a retail business, you can read our other articles by clicking the following link.
If you find a friend or relative that want to start a retail store, try asking them who their target market is and why their customer must shop from his/her store. The answer is usually; “I want anyone to shop in my store, old and young, male and female, everyone!”
Statements like this are often heard from those who have just run their retail store. They assume that every citizen in the city has the potential to become his/her customer.
Unfortunately, these dreams rarely become reality. The best retailers are those who know for sure who will step into their store. Let’s look at the following examples:
If you think delicious coffee is a warm one and the price is less than 50 cents, then surely you are not the target market for Starbucks.
If your definition of delicious food is home-cooked, then surely fast-food restaurants like KFC and McDonalds will not consider you their sales target.
That is the first strategy that we recommend to develop your retail store. By determining who your customers are, you will not overestimate market demand, which often results in accumulating inventory in the warehouse and many other problems.
There are 10 other strategies that you can implement to grow your retail store. Here is the list:
Don’t give too many promotions
Promotion is an effective way to increase your sales figures. However, if you do it every single time, then you’ll end up losing money. In addition, your customers are those who will only shop with you when there are promotions on the run.
Therefore, look for customers who want to willingly buy your merchandise at any price. When you find out who your targets are and know what they need, they will become your loyal customers.
Attract new customers
If you hoping new faces coming in from your front door every single day, then you have to make more effort. One of them is by providing an unforgettable shopping experience.
This unforgettable experience includes designing your store as attractive as possible to lure more people into your store. Or design your website so that visitors will know exactly what they will buy when visiting your store.
This unforgettable experience can also in the form of a blog that provides tips and tricks that provide more value for the items you sell. Or with social media marketing to capture new customers with engaging photos and videos.
Improve customer service quality
Customer service is the spearhead of your business. Good customer service is not only able to provide the best solution for your customer problems but also has the ability to increase your customer loyalty.
Improving customer quality will make your customers feel valued. This can also increase your customers’ trust in your products, and your own company in the end.
Increase your employees’ salary
Many entrepreneurs are confused about why their company is underdeveloped, even though they have done various strategy to market their products. Very rarely do these entrepreneurs realize that the culprit is their employee unhappiness.
You can increase your employee happiness by increasing their salary. By increasing their salary, you can increase your expectations for your employees. It’s a win-win solution.
Take advantage of technological developments
The recent development of technology not only impacting society in general but also in the business arena. Cloud technology is not only useful for storing photos or videos, but also your business sales data.
Not only that cloud technology also makes it easier for your employees to collaborate with each other. Let’s take inventory management for example. With data stored on cloud servers and accessible to anyone, you and all staff can track inventory quickly and accurately.
Those are the first five tips that you can apply to develop your retail store. For the next five tips, you can click the following link.
No matter how successful your B2B company is, you still need to keep your eyes open for new business opportunities. You should not be too overjoyed with what you have achieved, since B2B sales are getting tougher. Imagine what would happen if you stopped looking for new business opportunities, while your competitors keep thriving!
Therefore, you should let your guard down. Generate more qualified leads. Gain more positive customer reviews. Maximize your business opportunities with these seven effective ways!
1. Look for Business Opportunities Through Various Channels
You should not only focus on one sales channel. Your leads might use various social networks and you could meet them anywhere. Thus, look for them through various mediums both online and offline.
Set up lead magnets on your website. Lead magnets must consist of useful content and be desired by your website visitors. These could be videos about your product or service, ebooks, discount coupons, free trials, membership registrations, and a lot more. Advertise your lead magnets with the right keywords and bids.
Strengthen website’s ranking. Consider creating a blog containing beneficial articles for your website visitors. Utilize various keyword research tools such as Keyword Planner, Keyword Tool, Wordtracker, and etc., to find the right keywords for your content. Use a free content optimization plugin like YOAST to ensure your content is SEO friendly.
Facebook, Twitter & LinkedIn
Facebook, Twitter, and LinkedIn are still considered the most effective sales channels. You don’t have to use all these three social networks together. But if you haven’t used any of them at all, this is the perfect time to start. Not only can you post your ads, but you can also join various business communities, particularly on Facebook and LinkedIn.
Aside from using digital marketing, you should look for new business opportunities offline as well. Conduct seminars, training or conferences to reach more qualified leads. You can hold your own events or collaborate with partners. Collaborating with reputable partners can help increase public trust in your business.
2. Analyze Your Lead Sources
After intensifying marketing techniques on various channels, let’s start analyzing your lead sources. Know where your leads come from, whether they come from your blog, your Google ads, email marketing, and so on.
Figure out which channel generates the most leads, which one generates qualified ones, and which one generates unqualified ones. After analyzing this, you will be able to allocate your budget to the profitable lead sources only and eliminate the others.
3. Take advantage of Marketing Automation
Make use of email addresses that you get from each lead magnet that you set up on your website. Create personalized marketing campaigns using a marketing automation system. Personalized emails usually get higher open and click rates than mass emails.
Marketing automation can also help you automate the email scheduling for all your campaigns or newsletters, create customized messages for visitors who enter certain pages on your website, and a lot more. With this system, you will also be able to do remarketing easily, because it automatically stores your visitor data in a centralized repository.
4. Use the 60/20/20 Method
The 60/20/20 method is a strategic approach to time management. Instead of spending 100% of your time to focus on one thing, it’s best to allocate your time using this method.
First, allocate 60% of your time to proactively focus on tasks that really add value to your business or cannot be done by others. 40% of your other time must be divided into two categories: 20% on planning and 20% on strategizing. Planning means dedicating time to resources and schedules for business operations; strategizing means taking the time to evaluate how you can improve your business performance, your customer experience, or your profit model.
In order to save time, money and energy, consider using an automated CRM solution. It can help you manage customer data, identify potential customers, distribute leads to the right salespeople, monitor sales status, prioritize leads, and much more. Thus, you and the sales team can focus more on bigger business opportunities and provide better customer service.
5. Increase Your Online Reviews
Most B2B decision makers do online searches before making a purchase. They would look for honest reviews to support their buying decision. In order to gain more business opportunities, you should post reviews of your service or product on your website.
Do not think of buying customer reviews. Dishonest reviews will only degrade your website’s ranking and damage your business reputation, so don’t take risks.
6. Create Referral Programs
Did you know that your existing customers can be profitable lead sources? Create referral programs by offering your existing customers special prices if they can successfully bring new customers to you. This will not only benefit you, but also your loyal customers.
Another way you can try is allowing other people to become your resellers. You can set up profit sharing agreements in advance. However, recommendations from customers who have used your product or service are usually more effective.
7. Collaborate with Influencers
Working with reputable influencers can help maximize your business opportunities. First, you have to find influencers that are relevant to your business as well as your target customers. They must understand the product or service you are selling so that they can be great brand ambassadors.
Collaborating with influencers through advertising has popularly been done by various types of businesses, because despite costly, it is the quickest and easiest way to increase brand awareness. However, there are various other ways you can try. For example, you can invite an influencer as a guest star at your event, or ask a popular blogger to write articles about your product or service.
As an HR manager, you definitely don’t want to choose the wrong employees. The reason is clear. Hiring unqualified employees wastes time and money. Therefore, you must be very careful during employees recruitment process.
This article will help you avoid hiring people who do not suit your expectations and needs of your company.
Don’t ignore the red flag
A candidate might look good on the CV but, you never know their work ethic before they actually work with you. This is why a job interview is one of the important stages.
During the interview process, candidates often show red flags and HR manager, consciously, often ignore them. Here are some things at the interview that can be a sign of the applicant will be having a poor performance when he starts working in your company.
Coming late at the interview? Most likely they are undisciplined.
Family involved during the selection process? When the applicant is rejected, he will find it difficult to accept the decision.
Shabby appearance at interview? Yes, their appearance will be like that every day.
There are many more red flags that must be considered.
Don’t ignore the signs. If it’s possible, ask them individually about your concern so that you don’t make biased assumptions.
Let them know your expectations
Don’t ever think that you have no right to tell your employees what to do because they are adults.
Yes, indeed, you don’t have to tell them the same thing way too many times. However, if you want your employees to work according to your expectations, you have to explain your expectations clearly, make sure they understand it, and provide feedback about their understanding.
Every company and position must be different. Each boss also has different expectations. Even if your prospective employee is very skilled in the same field at his previous company, you still have to explain the meaning of success for your company.
If you don’t explain it, assuming your employees has understood, you will not be satisfied with their performance. They cannot read your mind, and finally, you will consider you hire the wrong of employees.
Understand their goals
Sometimes, when employee performance is bad, it’s probably because they don’t consider working in your company as their long-term plan. Maybe, they are not sure if your company is their final destination or not.
The way to solve this problem is to ask your employees during interviews about their goals. You have to know what they want in six months, five years, ten years, and so on.
It is not too difficult to do, but it has a big impact on the outlook of your prospective candidate .
Make sure the job description matches the position offered
The mistake most companies make is opening a job for a specific position but hope their employees can do many things.
Before hiring someone, you must know what you expect from your prospective employees. Therefore, make an appropriate job description.
Don’t shock your employees. For example, someone is applying for the digital marketing position that you are advertising. Don’t make and hope he or she is capable of designing, content writing, or other chores outside the description of the digital marketing position that you publish.
Maybe you can occasionally ask for their help to do tasks outside their responsibilities but, ask for their understanding before doing the task.
This tips is actually more relevant when prospective employees have been accepted to your company but, there is nothing wrong if it’s here.
If you label one of your employees with “the wrong one” maybe that is because they you do not evaluate them, the company, or the opportunity that they give. So how do you show your appreciation for them?
If there is no appreciation, they will feel as a worker that can be easily replaced. One thing that you should not is giving money as a bonus or else is not a good appreciation.
Employees must feel as useful individuals and they have helped the company achieve its goals. Thus, if the company is progressive, employees will feel that they are a part of the progress.
Hiring workers who don’t get along with your expectations can sometimes be an obstacle for your company.
Before making a decision about which prospective worker you will accept, both you and the applicant should be clear about each others’ expectations.
Fashion has become one of the most promising businesses. It is always desired and there is always a demand for it. The problem is that competing in the retail industry is not easy. There are many fashion retailers who sell similar products. Plus, more and more online fashion stores are arising.
However, you should not be discouraged. By doing the right business strategies, you will be able to survive against the fierce competition. Not only do you have to increase your sales, but you also need to improve your business profitability so that it lasts a long time. Thus, what can you do to keep your fashion business profitable? Check these simple tips!
1. Know What Your Customers Need
You can freely innovate your fashion products, changing them frequently according to the seasons or trends. But, remember that you have to provide items that meet your customers’ expectations.
Holding undesirable items will only eat up your storage space. This can also cause financial waste. You might be able to discount your unsold items later, but you won’t get any profits.
View your sales history. Figure out your previous high-demand products for your reference. You can manually track your sales data but this is very time consuming. The best way is tracking all your sales data automatically by using an inventory management system with a forecasting tool that enables you to accurately forecast demand for your inventory.
2. Strengthen Your Brand Equity
Aside from product quality, your brand equity also needs to be improved. Brand equity refers to the additional value that a customer attaches with your brand, including the awareness, perception, and loyalty.
To improve brand equity, you need to recall your initial intentions when building your fashion business. Here are some questions that you must ask yourself:
What message do you want to convey to customers through your brand?
What makes your brand unique compared to other brands?
What kind of perception do you want to instill in someone when they first hear or see your brand?
What makes a customer want to keep choosing your brand over other brands?
Don’t just think of something unique, but also something meaningful to your customers. Make them feel connected whenever they wear your clothing items. As an example, Net-A-Porter, an Italian fashion brand collaborated with several well-known designers to release a limited edition collection, with all proceeds benefiting Women for Women International. That means, those who bought a piece of the collection indirectly helped women in need in various countries.
Another example comes from an Indonesian fashion brand, Cinta Bumi Artisans. The owner decided to work with the barkcloth craftsmen from Poso, Central Sulawesi, to create beautiful tote bags. People who bought the tote bags played a significant role in supporting the almost-extinct barkcloth making tradition in Indonesia.
3. Level Up Your Fashion Business with Technology
Technology is rewriting the rules of retail. Some retailers consider the implementation of technology as a way to increase prestige. However, to some others, using technology means business process simplification and greater business insights, especially into their sales and profits.
Technology such as cloud-based ERP software enables fashion business owners integrate their operations; from tracking sales, controlling purchases, managing suppliers, handling inventory, to monitoring profits and losses anywhere and anytime. This business management software is perfect for those who have multiple stores or warehouses in different locations.
4. Create Creative Loyalty Programs
We all know that it is far easier to sell products to existing customers than to someone we don’t have a relationship with. This is why customer retention is very important. One of the most effective strategies for retaining customers is creating loyalty programs.
Since almost all successful fashion retailers offer appealing loyalty programs, you must be creative with yours. You can create a tiered program with various benefits, reward your customers with points based on their spending, or allow them to determine their own rewards. You can easily create and customize your loyalty programs with membership management software.
5. Keep Your Cash Flow Under Control
Increasing sales alone is not enough to optimize your fashion business profitability. You also need to control your incoming and outgoing cash regularly to ensure healthy cash flow.
Don’t let your expenses exceed your income. To enable you to control your finances, consider using EQUIP Accounting. This financial management system allows you to estimate future income and expenses, so you can control expenses and allocate budget better. You can also track profit and loss based on store location, area, and even product, so you can figure out profitable and unprofitable aspects of your business.
Millennials grow as the “natives of the digital world” because they have used technology from a very young age. That’s why most of their activities depend internet connection.
The millennial life style that is very different from the previous generation that it changes the market, including the property market. On a daily basis, for shopping for example, millennials tend to shop online for their clothes, body care, furniture, even homes.
Thus, it is not surprising that millennials shop in a way disntinct from the previous generations. This article will discuss how millennial characteristics are and how they change the property market.
Millennial understands their dream home
Many millennials have just graduated from college or just a new employee. Therefore, having to renovate a house after the purchase is not quite a proper choice.
Millenials seek a house that must have a kitchen and a bathroom that works well. They look for a house with an open floor plan, work space, and equipped with technology. In fact, some of them are trying to have a house that use a solar panel in order to be environmentally friendly.
Millennials prefers small houses and close to urban areas, offices, and schools. Most of these young people work at home and they often go out for a recreational activities. Therefore, houses close to open fields are highly sought after.
For this generation, finding a strategic home will reduce other additional costs. Living in a place close to important places is indeed a good approach.
The priority of the millennial lifestyle is different from that of their parents. Millennials have more expenses such as internet fee and smartphones that were once considered luxury. Increasing the cost of millennial living makes them more difficult to buy a house.
A very selective generation
Most of the Y generation are looking for a modern and affordable home. It means, they choose houses with rooms and workspaces, prefer wooden floors to tiles, and open spaces to entertain their guests – all at an affordable cost.
Therefore, the millennial generation is very strict in choosing a house. They will match a house that covers their needs and the right price.
Don’t be surprised if millennial buyers come and come back repeatedly without any confirmation whether they will buy the property or not. They are just selecting carefully.
Millennials do research with their smartphones
Millennial life is almost entirely dependent on their smartphones. They also choose homes and find out their home needs through the smartphone.
Property businesses must be able to adapt here. Marketing targeted properties is not enough just to print photos and show them off on certain platforms. Advertisements must also be so targeted at digital platforms, especially social media.
Advertisements in this digital world must be truly honest and true. Millennials will really do research if they find fault or lies.
How to work around this?
A property agent, sooner or later will be approached by a client from millennial generation. Millennials steps into the property market starting from this year and it means it offers property agency a golden opportunity soon.
How to handle is by following the millennials way of shopping. Try to digitize all property-related processes. Property agents can advertise properties for sale with a good quality and instagrammable photography.
Changes must also be done in the properties for sale. Property agents must be able to compete in price, location, and availability of facilities, considering the millennial lifestyle is quite different and depends on technology.
Give the best service when buyers come to the property offered. They will ask a lot of questions and property agents should be clear and honest in answering. In addition, help millennial buyers understand how the information that property agents provide can describe the property actual condition and try to give them advice on properties that are worthy to be pursued.
Millennials are fairly new in the property market, but their lifestyle has changed dramatically in the business market. Property agents, be prepared for change.
Running a successful apparel business requires more than just hard work. There are many other things that you need to have as a leader of your company, such as patience, passion, and creativity.
Beyond these aspects, there are still many other things that can ruin your success. Unfortunately, there are still many business owners who still make trivial but impactful mistakes in their business.
Here are five reasons that can hinder you from success:
Focusing on products, instead of developing their business
Knowing the latest trends and what your customers want is indeed important. But there is something far more important for you to do as an apparel business owner, which is growing your business.
The knowledge on how to run your business optimally, make business plans and develop effective promotions. Lacking this knowledge will make you feel that your business is not developing, and collapsing your apparel business in the future.
Go with the stream
This phenomenon is quite common among business owners in the world. When a fashion trend rises sharply, almost all clothing stores would want to sell it. Sadly, there are still many businesses getting trapped in the stream and ends up ‘drowned’.
There are a lot of fashion trends going in and out of the market. When the trend struck, countless retailers buying their way in and stockpiling the merchandise to anticipate the demand. But as the trend fades away, a lot of business ends up losing money because they’re unable to sell their stock.
Failure to anticipate challenges
Manufacturing products is a challenging process for some business start-ups. This happens because they are still trying to understand how to properly run an apparel business.
Dealing with suppliers, creditors, retailers, and your customers is a day to day challenge for fashion business owners. If you fail to maintain good relations with the four parties above then don’t be surprised if you end up out of business soon after.
Overwhelmed by financial management
Among four other reasons, maybe this one is the most capable to make your company goes bankrupt. Financial management is a must do when you own a business. And naturally, you, as the business owner, are required to know how well your company’s cash flow is.
Unfortunately, many business owners don’t know how to do financial management. They know how to sell their merchandise, but don’t have any financial management skill. This resulting in imbalance income and spending.
Ignoring customer critics
Not all customer criticism is bad. In fact, you have to listen to what your customer complaints are. They’re complaining because they want a change for your apparel business.
Sadly, many business owners are allergic to criticism. They close their ears tightly and think what they have done is the most appropriate. This often leads to your customers leaving you because you never listen to their input.
Many people are jumping head first and opening their apparel business because they are tempted by the fast ROI. It’s true that money comes quickly when a trend rises, provide you can see the opportunities. But you need to be careful and don’t do the mistakes above that make you regret later.
For other tips and tricks about the apparel business, you can click the following link.
According to Wikipedia, a sales order is a document issued by a business or sole trader to a customer. Sales order documents contain information about the item sold or services rendered, the price, and the number of items purchased.
There are also sales orders that also include the buyer’s data. Such as shipping address, billing address, payment method, also terms and conditions. Generally, cross-company transactions go through the following steps:
Sellers make sales orders based on the purchase order
There is a possibility the buyer wants to see the sales order’s contents, but this rarely happens
After the item is delivered, the seller issues an invoice based on the sales order
The importance of sales orders for companies
Many companies think that a sales order and a purchase order is the same thing. The truth is, these two documents have different functions. A purchase order is a document issued when your company wants to purchase something. Whereas a sales order is a document used to confirm sales.
This errors can lead to more complicated issues in the long run, especially in purchasing and financial departments. Misperception between sales orders and purchase orders can lead to accounting errors.
That’s why a lot of companies start to automate this process by using sales management software. The main objective is to avoid human error. But there are other benefits that can be learned, here are some of them:
It is undeniable that paperwork is the most time-consuming job. Retrieving data from purchase orders in order to make sales orders requires accuracy so that data input errors can be avoided.
By using sales management system software, human errors can be avoided. The software will handle the document making process will not only increases the data accuracy but also saves the time needed to create the document.
Improve customer service
Manually recording sales data does not only affect your company purchasing and finance divisions. It will also affect your customer service department. They won’t able to show their best performance when serving customers.
Imagine how troublesome it is to find a single data from a ton of sales order documents, while your customers grumbling impatiently on the other end of telephone line.
Sales management software can help your CS team work better. With just a few clicks, the desired data can be obtained easily and quickly.
Grow with your company
Another advantage of using sales management software is that you can scale up or scale down your business without having to add more staff. You can’t do this of course if you still manage your sales manually.
With the help of the system, you don’t need to add more staff when orders suddenly start pouring. With sales management software, one or two staff are more than enough to manage your sales documents.
Access from anywhere and anytime
With the cloud system support, you can access the information needed from anywhere, as long as you are connected to the internet. This way, enable you to make better decisions quickly without any obstacles.
This also applied to your sales staff. Whenever they need data, they can access it anytime from their cellphone. Your customers will be happier with your customer service speed.
This automation provides the speed your customers need. Sales management software can cut 50% of the time needed to process the required documents.
For other tips and tricks about sales management, you can click the following link.
The new school year will begin very soon. As usual, student and parents will crowd school supply stores to shop some fresh stationary. This period, by promoting the jargon “back to school” is the goldmine of retail.
The revenue of this season is the biggest after the holiday season. With data analysis solution, you can gain so much from those seasons.
When the back to school season begins, data analysis will help retail to attract existing customers and invite the new ones, in hope that it can leverage sell in holiday season.
Moreover, retailer will have to use the data to determine who to target, what products to stock, and how to manage staff efficiently.
An effective marketing strategy starts on mid-June
The back to school season lasts pretty long. Beginning a few weeks after the report cards are being handed to the students and ends a few weeks after the school begins, about, mid July. Retail can maximize their promotion during this period.
Some people choose department store to shop, while some others prefer online retail, discount shop, and stationary or clothing shop.
Customers often use their gadget to access the shop’s website, surveying the price, and collecting discount coupon. Rarely do they make an actual purchase. It denotes that customers are into new innovation in retail technology.
Use algorithm to prepare for sales
Some stores use algorithm to analyze customer information and create a new strategy to market them.
Moreover, data analysis can be used to identify customers’ challenges and concerns when shopping. Therefore, retailer can create a program that reduce that tensions.
Fintech has become one of the most fastest-growing businesses in Indonesia, offering various types of services such as cashless payment systems, peer-to-peer lending, account aggregation, investments, and insurance. However, this phenomenon shows that the competition in the finance industry is getting tougher.
Winning the competition in the financial sector is indeed not easy, but you can make your business a step ahead of your competitors by implementing the right strategies. Here are a few tips for building a successful fintech company that you can apply.
1. Focus on Customer Service
One of the most common mistakes made by fintech entrepreneurs is focusing too much on increasing revenue. Akshay Garg, the founder of Kredivo, one of the leading fintech businesses in Indonesia admitted that. According to him, many fintech entrepreneurs focus more on making profits than improving their services, although they are struggling to gain public trust.
When you have successfully gained public trust in your business, finding investors should not be difficult. This was admitted by Modalku, a pioneer of financial technology-based peer-to-peer lending services in Indonesia. Great services along with transparency will help fintech companies get trusted by customers and investors.
2. Build a Healthy Work Culture
The success of a fintech company cannot be achieved without the role of its workers. Therefore, it is very important to build and maintain a healthy work culture. Although there is no ideal description of what a healthy work culture is like, there are a few elements that create it:
Productive work environment
Low stress levels
High employee satisfaction
Low employee turnover
Room to grow
Pressure at the workplace is unavoidable, but stress can absolutely be reduced. High employee turnover and decreased productivity can lead to many obstacles in various business activities. Therefore, it is important to improve your HR management.
Make sure employees’ salaries and benefits are always paid on time, have your employees fill out satisfaction surveys, review their achievements, analyze and help improve their performance. To ensure the whole process is going well, consider using a centralized HRM system to simplify complex HR operations throughout the company.
3. Find Reliable Partners/Investors
You will compete with many other fintech entrepreneurs with lots of money, so attracting partners and potential investors early on in the process is important. This could be a fairly difficult stage, but you must be patient and selective.
You and your prospective partners or investors should share the same idea and passion, so that the collaboration can run smoothly. Choose a funding source that suits your needs. Venture capital companies can provide large amounts of money with strategic inputs, but often want to be included in important decisions. Most private investors do not interfere, but usually their capital resources are limited.
4. Ensure Smooth Cash Flow
Not only do you need to secure your capital in advance, but also after your business has been launched. Supporting your business to keep running is not enough, you also need to ensure that your business is profitable.
Know your expenses and income in a given period (for example, a month or a year). Make sure you don’t spend more than you earn. Therefore, it is important to keep your budget under control and check customer bills regularly.
Business finance apps like EQUIP Accounting can help you better manage your finances. This software makes it easy for you to control expenses and allocate budgets, keep track of receivables, calculate profits and losses, and forecast revenue. This tool also makes it easier for accountants to follow up on invoices, which will help you get paid on time and result in healthy cash flow.
5. Invest in Technology that Supports Your Fintech Business
Fintech startups are booming. Each of them has unique and attractive offers for customers. You must enhance your competitive advantage if you want to stay ahead of the competition.
One of the smartest ways to gain a competitive advantage in the fintech business is to invest in automation systems like ERP software. An ERP system helps you gain greater insight into your business, covering from accounting, HRM, CRM, to asset and contract management.
With most of your business processes being automated, efficiency and productivity can be improved, while operating costs are significantly reduced. Complete and accurate analytical reports will help you make better business decisions. You can also focus more on innovating to provide better services for your customers.