Cash flow is the most critical element of company’s finances. Slow cash flow can hinder your business’s development, because you always need to have enough money to cover daily business-running costs. On top of this, you also need to reinvest significant amount of your revenue in order to stay competitive. In this article, we’ve shared several tips that will help you to improve your company’s finances and to speed up its cash flow.
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Expand your market
A larger market brings more customers. There are several ways
how you can increase your client base.
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Offer complimentary services – Offering free
products will drastically increase your client base and make you
current clients more loyal. Free products and services should be useful to your
targeted audience. They need to be easy to deliver and they can also come in
the form of extended warranties, consulting services or complementary products
wrapped in a bundle with your main product line.
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Extend your geographic market area – You can do it by
offering your products or services online or extending your advertising reach
to other cities, counties, states or countries.
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Sign cooperative sales agreements – If you’re not able to
deliver your products to faraway places or you have troubles with introducing
new packages, you can sign a cooperation agreement with companies in other
cities or states or with companies from other industries that will enrich your
bundle offers with their products and services.
Outsource financial tasks
Many small business owners spend a lot of their time on
accounting and bookkeeping. If they’d outsource these tasks to professionals,
they’d have much more time to invest in their company’s development. Writing
tax returns is another task DIY entrepreneurs like to do by themselves,
although in this day and age, it’s easy to find an affordable tax accountant in Sydney and in other Australian cities.
Time and accounting agency’s availability are not the only
factors in this mix. Small business entrepreneurs should look up to big
companies. They often outsource their whole financial department, from basic
transactional processes, to more complex tasks like budgeting, forecasting and
internal auditing. By outsourcing financial tasks, entrepreneurs increase their
transparency and develop better benchmarks that help them to satisfy difficult
regulatory requirements and improve their business performance.
Raise your prices
Although this doesn’t sound too intuitive, it can be a very
effective move for battling high production costs and slow sales. Price raise shouldn’t be taken lightly. Before
you decide for this move, you should conduct an elaborate competitive research.
Try to determine one or few things that make your products remarkable and use
them in your advertising in order to retain your customers after the price
jump.
Of course, you shouldn’t raise your prices quietly. Schedule
your price jump and make a big announcement. Call all of your current and
potential clients and give them the chance to renew their contracts or to
purchase your products at a lower price.
Eliminate unnecessary costs
Routine is the worst enemy of progress. There are many
expenditures we make just because we don’t have time to assess our company’s
spending. In order to stay competitive, companies should conduct regular
audits. All unnecessary costs should be written off as soon as possible.
When we start our business for the first time, we usually offer
long list of complementary products and services in order to attract customers
and position our brand on the market. Many of these incentives are overly
expensive and sometimes even useless to the newly acquired clients. In order to
cut company’s costs we can discontinue these services without affecting our
customer satisfaction.
Boost your sales channels
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Entrepreneurs who want to improve their sales, need to generate
enthusiasm and give their customers more reasons to buy their products and
services. You can upset your market dynamics in many different ways.
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Strengthen your sales collateral – Regularly update your
website’s information and post articles, eBooks and infographics that navigate
your leads through the sales funnel.
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Make sales partnerships – Offer your products to other
companies and allow them to charge commission on each sale they made;
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Improve your customer’s loyalty – Remarket your products
and offer discounts and other incentives to your old customers;
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Introduce different types of payments – Add PayPal and
other online payment options to your check-out pages.
These tips will directly affect your business revenue and
therefore they’re very useful for newly founded companies and for enterprises
that are affected by low sales and other cashflow problems. Remember that your
company’s finances are strongly connected to the sales of your products and
services, and that every revenue boost starts from improving your overall
marketing strategy.