Strategic advice Maximizing resources in the early stage

To understand if your resource allocation is making your company as efficient and productive as possible, consider whether your prioritization is working. The best key performance indicators (KPIs) vary between industries, but defining them starts with setting goals appropriate to your business’s stage and choosing metrics you can influence, such as shopping cart conversions or completion rates.

For example, cash on hand was a key indicator for Jerod Willow and his asphalt paving firm Willow Designs when he was planning for expansion after outgrowing his manufacturing space. Willow’s available cash would not fully fund the down payment required for the new construction. But, by working with his Truist relationship manager and a specialist from the Truist team, Willow was able to access a Small Business Administration (SBA) loan program and boost his available cash to successfully build the larger facility.

The best KPIs are often the simplest to measure and specific to the corresponding goal. If you find you’re not making progress against a particular KPI, it may be time to reevaluate your resource allocation, reducing spending on expenses that aren’t immediately critical to prioritize those with more impact.

The result of any analysis may often look predictable: You need more resources. The marshaling of additional resources will ease allocation, but in many cases building up resources requires more money to pay for them.

There are several financing options for businesses in the early or growth stages that a Truist relationship manager can help you explore. Some include term loans that are repaid over a set period, and business lines of credit that provide working capital up to a set limit, with interest due only on how much is being used at a time. Truist also offers more specialized funding opportunities, such as equipment financing and SBA loans.

Regular conversations with your Truist relationship manager can keep both of you thinking about how your business is changing and when you may need to reallocate financial resources.

Every company will distribute resources differently to meet shifting goals, but some strategies apply to many situations.

Outside relationships can maximize resources and build partnerships for the future. If two companies each have assets or skill sets that can be used by the other in a strategic way, both benefit.

For example, Warby Parker and Instagram used a mutually beneficial relationship to amplify the eyeglass manufacturer’s marketing reach at a low cost and establish the social media platform’s brand-building capabilities.

Warby Parker used augmented reality tools to allow its customers to try on glasses virtually on Instagram’s platform,¹ which encouraged sales and social sharing. The buzz Warby Parker got for the tool helped Instagram promote the use of such technology by more brands.

Leveraging employee skills and experience can also help maximize resources. Ensure members of your team understand and communicate about resources, and consider a centralized planning system to share availability and needs in real time.

It may also be useful to measure success by ratios rather than gross figures. If a manager’s bonus is tied to returns on inventory rather than total sales, for example, they might strive harder for efficiency rather than overspend trying to boost gross revenue.

Doing more with less is a necessity for many early-stage companies. Your Truist relationship manager can help you respond to your company’s changing needs with creative financial solutions to maximize the resources you have.