Your business resources are critical for your business. Even though your resource is not the most important asset of your business, your business will surely face bankruptcy if you are unable to manage it well. In this article, M88 shared the company’s tip on how it manages its company resources.
Cash burn rate
This business rate determines how long your business will survive until there is no cash left for your business. There are three important things from this rate you should carefully watch: available remaining cash, business bill, and payment deadline.
Please remember that if your burn rate only shows 1 – 3 months left, you should start consider shutting down your business or to find another investor.
Capital raising barometer
Capital raising barometer primarily measures how much cash your business receives from various sources, including your customers, suppliers, friends, colleagues, family, founders, and other sources. The higher capital raising level you have, the more stable your business account will. At the other side, if you are not able to convince your stakeholders to put their money at your business, then you should start to worry about the future.
Hiring meter reviews 3 different aspects of your company human resources: employees you have hired, active candidacies, and people you have offered to work with you. Please remember that being a successful business does not always mean hiring many people to work for you. Make sure that you have put all resources you have at their post, leaving nothing and no one without a job. Optimizing your resources is significant both for efficient and successful business.
Customer growth monitor shows you the ratio between your business revenue and customers you currently have. It also provides detailed information about your customers’ activity in using your product, how often they recommend your product to other people, how much money you earn from them, and finally how many products you have sold to them.
Your business is in good condition if the monitor shows you three different conditions. First, there are many people using your product. Second, they recommend your product to other people. Third, your customers have no objection to paying higher than usual to purchase your products.
However, if the monitor shows you only one or maybe two conditions out of three, then you should evaluate your business strategies.
As essential business part, you need to make sure that your product development runs on the right track. Product development tracker will help you in performing the management. It will show you important information you need to know about the development that includes the timeline, current project your team is working on, and other essential information.
You can keep working on your plan if the tracker shows you one fact: everything is on schedule, and you are ‘harvesting’ positive feedback from your customers.
At the other side, if the tracker shows you the different value, then you should change the business development strategies or people working on it. Please remember that product development involves both objective and subjective opinion about product, even though it is still a prototype. Therefore, you need to perform a clear and deep investigation to find out things that make it wrong. Performing market research will help you for this purpose. Never stop to learn if you want to reach the success, especially in learning the market and people inside it.