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Proactive financial management means being adaptable and smart with your money. It means tracking your cash flow and understanding your income and expenses, which helps you anticipate financial needs and avoid cash shortages. Startups that focus on strategic financial planning, such as setting clear goals and regularly reviewing financial reports, is more likely to achieve sustainable growth and long-term success. Small businesses with strong financial management practices are more likely to survive beyond five years.
1. Use automation to save time
Automation tools can streamline routine tasks like accounting, invoicing and payroll, giving you more time to focus on the core aspects of running your business. For example, using accounting software can cut the time spent on financial management up to half. Automated billing and payments can speed up cash flow and help customers pay on time. Businesses that use financial automation can reduce overall operating costs by 15-20%. Automation also makes it easier to keep good records and comply with regulations, helping you avoid mistakes and costly fines.
circle 80% of businesses are fast-tracking process automation and half plan to automate all repetitive tasks. It is even estimated that 69% of all managerial work will be fully automated by 2024. By incorporating automation, you can be part of this revolution and improve your financial processes.
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2. Find the right pricing strategy
Finding the right pricing strategy for your products or services is key to increasing profits and staying competitive. There are different ways to set prices, so you need to find the one that best suits your business goals. To get started, do market research to understand your industry, target audience, and what people are willing to pay. Look at yours ComPeTITIon to see how their prices compare to similar products or services, but remember, you don't have to match their prices.
Cost-plus pricing involves adding a markup to your production cost, while value-based pricing focuses on what customers are willing to pay for the value they perceive. Dynamic pricing changes prices based on demand, as seen in industries like airlines and ride-sharing. For example, Amazon uses dynamic pricing during periods of high demand such as holidays or special events. Data-driven pricing can also be very effective.
Your understanding unique selling proposition (USP) – what makes your offering stand out – can justify higher prices if your product offers unique benefits. Set your price as an investment, not a cost. Trying different pricing models and asking for customer feedback can help you find the best strategy. Regularly reviewing and adjusting your prices based on market trends and customer preferences will keep you competitive and profitable.
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3. Build a strong content marketing and SEO plan
Creating strong content marketing and SEO plan can help you attract and engage customers as you grow your business. Producing valuable and relevant content helps establish your brand as a trusted authority, drives traffic to your website, and turns leads into customers, which supports sustainable revenue growth.
A helpful blog post that answers common customer questions can increase organic traffic to your site. Companies with active blogs generate 67% more monthly leads than those without a blog. Using different content formats like blogs, videos and infographics allows you to reach a wider audience and involve them in the customer journey. Optimizing your content for search engines (SEO) using targeted keywords and meta tags can improve your website's search rankings, attracting more visitors and potential customers. Consistently publishing content keeps your audience engaged and loyal, leading to higher sales and growth.
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4. Create a winning referral program
A well-designed referral program can help you grow your business leveraging your existing customers to bring in new leads and sales. Encouraging happy customers to refer friends and family by offering incentives such as discounts or rewards can motivate them to spread the word about your business.
Dropbox offered free storage to both the referrer and the new user, resulting in a 60% enrollment growth. Customers acquired through referrals tend to stick around longer and are more likely to buy again. In fact, referred customers have one 16% higher lifetime value than non-referral customers. By establishing a strong referral program, you can leverage your customer networks, drive more sales, and build loyalty with your current customer base.
5. Form smart partnerships
Merging with other businesses can open new doors for growth and revenue. Look for businesses that complement your own to create win-win partnerships, such as These partnerships can help you reach new markets and improve your offerings.
Co-branded campaigns can also increase brand awareness and customer loyalty because customers value the combined expertise of two trusted brands. When creating partnerships, set clear goals and benefits to ensure the collaboration is successful and worthwhile.
6. Manage your cash flow for sustainable growth
This may be the last hack mentioned, but it is one of the most important for small businesses. Monitor your expenses and find areas to cut costs without reducing quality. Modern payment apps make your finances easier to handle as they are affordable, user-friendly and offer instant payments. Consider the fall slow payment methods such as checks, regular ACH, and credit cards, which can be costly. Keeping payments and invoices in sync is essential to avoid cash flow problems.
Allocate your resources wisely to invest in projects that increase revenue and help your business grow. You can also use cash flow forecasting tools to plan better. By managing your budget carefully, you can set your business up for success and sustainable growth.