Collaborative post – may contain affiliate links
If you own a business and you can see money drying up, it’s difficult to keep your composure and think sensibly about what to do. Perhaps you need money for something important fast, or you simply want to ensure that you increase your cash flow in the best, most productive way possible.
Don’t worry, business owners. This post has you covered. Follow some of the tips below and you won’t have to do anything rash for cash.
Create A Brand New Budget
Take a look at your budget. When was the last time you figured out what was really working for you and what wasn’t? Creating a brand new budget could be the way to go. Maybe you can figure out ways to free up some cash. Maybe you’re paying for things that you don’t even really use anymore. Whatever the case, now is the time to hone your budget and put a new one together, even if you can only save the most miniscule amount of cash.
Perhaps you could even work with a pro to create your new budget and ensure you’re meeting your business needs.
Rethink Your Pricing Models
It may be time to rethink your pricing models. Sometimes, when you increase the pricing of your products/services, their perceived value tends to increase too. This means your loyal customers, those who are happy with your product/service, will still pay the price. Businesses who are struggling under mountains of work tend to do this. However, in some cases you may need to lower your pricing. Make sure you research your competitors to see how they are pricing their products/services. You could even consider asking for feedback from your audience so you can figure out the correct steps to take.
Encourage Repeat Business
The key to getting more cash flow in your business as it currently is, is encouraging repeat business. There are numerous ways you can do this, if you’re smart. You should already be aware that existing customer relationships are worth more, and easier to keep a hold of, than to gain new customer relationships. If you’re focusing too hard on gaining new customers over keeping your old ones, you’re definitely focusing on the wrong thing. You could encourage repeat business by offering loyalty points, discounts, and other incentives. Whatever you do, ensure that you nurture and renew customer relationships when necessary. Offer the highest level of customer service and personalize your interactions.
Use Your Assets
So, you need cash like yesterday and you’re not sure what route to take. You could potentially look at multiple financing options, including taking stock of your assets and then using them to secure money. In essence, this is a type of business loan, so you need to be sure you can pay it back or you run the risk of losing your assets. However, many businesses are surprised to learn that they have more assets than they first thought.
Re-negotiate Your Supplier Contracts
Take a look at your current supplier contracts and see if you can re-negotiate a great deal with them. If they know that you’re going to be a customer of theirs for the foreseeable future, then they may be happy to work out a more favorable deal with you. You can start by stating the parts of the deal you’re happy with, and then talking about the things you’d like to discuss. You must make sure that both parties are happy with this deal, so it’s all about compromise.
Bear in mind that this doesn’t mean getting your deal at the cheapest price possible. It means getting value for money, the right delivery, quality, guarantees, after sales service, and so on.
Create Incentive For Early Payments
Creating an incentive for early payment will keep cash flowing in the business nicely. You can do this by offering a small discount to those who pay up early. Make sure you don’t simply send out a reminder for payment once, however, as they can get lost amongst all of the other emails and get left on the backburner. Remind them when they have only a short time left to get the early payment discount. If their payment is neglected for too long, you could consider adding on interest – this should deter them from ignoring the payment. However, you may also want to make it clear with them that you are available to talk should they need to discuss a new payment plan or a new date for payment. Showing you are understanding will help you to keep customers, and ensures you will get paid eventually, rather than having to take costly steps to get a payment at all.
Improve Your Marketing Efforts
If there’s one thing you should always look at monitoring and improving, it’s your marketing efforts. When your marketing isn’t right, the rest of your business will suffer. Yes, it costs money for great marketing, however; it will pay off in the long run. Make sure you’re working with a company that has the right knowledge and gets the work done. Make sure you’re staying on top of what’s going on in your campaigns and how they are performing. While you don’t want to interfere with how these companies do their jobs, you do want to be sure you’re not wasting your money on a team that sit around doing nothing for you.
Add A Complementary Service To An Existing Product
Finally, you could consider adding a complementary service to an existing product. What can you add to what you’re currently offering that will encourage people to buy? How can you go above and beyond to encourage people to try your service? Even having a simple after-care policy could be enough to help you stand out from the crowd.
You really don’t need to do anything irrational for cash. Take some of these smart and sensible steps to see where you can free up cash, improve cash flow, and put together better deals. Chances are, you will notice a huge difference and won’t need to worry about cash for the foreseeable future.