Ways To Increase Cashflow For Small Business Growth

Cashflow Idea No. . Use cashflow sales checklists. For sales people, get them to ask every single customer to make another add-on purchase with the one theyve already made. A great way to do this is to have a shopping checklist of what the customer could buy. Cashflow Idea No. . Use cashflow payment checklists. For your administration team. Have a checklist of your customers and when their payments are due. Set up reminder e-mails/smss/and faxes for each customer to ensure their payment is received on time. Cashflow Idea No. . Increase your prices. Most business people are so scared of increasing their prices. Yet when you do youll notice a couple of things happen. Firstly, nothing may happen! Thats the ideal. Secondly you may lose a couple of customers, but theyll typically be the hard ones to deal with. If you increase your prices by or even % across the board youve got heaps more profitability, and more room to move in giving great service. Cashflow Idea No. . Invite your past Customers to buy from you again. Collect your customers details and invite them to come back to your business. Make them an offer, have a VIP sale night, give them a gift cheque to pay for the first part of their purchase, send them a monthly newsletter, telemarket them or let them know youve got a gift waiting for them when they call back. Cashflow Idea No. . Change your trading terms. Good cashflow is all about getting your money in as quick as you can, and paying it out as slow as you can. So change your trading terms to get your sales income in as quick as possible. If youre at days, change it to , or even COD. The quicker your terms, the better your cashflow. Cashflow Idea No. . Pay out slowly. The other part of having good cashflow is paying out your suppliers slowly. Do it slowly, but keep a good relationship with your suppliers. So find out when is acceptable for them. Currently, you may be paying on days. Yet they may accept or . If thats the case youll have another to days to use the money. Also consider paying on your credit cards. That way youll get an extra to days interest free. Ideally try and follow the / rule. Have your money come in within days, and pay your bills around days. Cashflow Idea No. . Accept only good customers. In light of the previous two points, only deal with customers that will gladly follow your trading terms. You may not like turning your back on some slow customers, but its worth it when you get all fast paying customers. Cashflow Idea No. . Use only profitable marketing. Try, test and measure all of your marketing. Financially analyse each marketing campaign so that you know its making a profit or a loss. Then use only the profitable ones. Youll probably find that youre wasting money on some marketing that isnt bringing you in any money. If youre not marketing, start testing some small ads/flyers/e-mails and keep going until you find something that works, with an offer that works in an ad that works. If youre already advertising, test your headline, test other offers, test other mediums. Cashflow Idea No. . Get someone else to endorse you Find someone with a database thats full of people who suit your target market, work out a relationship whereby you both end up winning and have them endorse you to their database. You may do the same for them, as did a hairdresser and a gymnasium, or a restaurant and a menswear shop. These ideas can increase your cashflow, and thereby increase your small business growth. So take each idea over the next days and try each one in your business. Copyright © by Casey Gollan. All Rights Reserved