Cash Flow is literally regarded as the life blood of any business. Simply put, if you run out of cash it's game over. So as a leader in your organisation, it is always important to consider new ways of maintaining or improving the cash flow of your business.
Here are some practical tips to help you keep the cash flowing in your business:
1. Offer a loyalty program
There is a reason you see so many of these loyalty reward cards, coupons and programs available in big businesses. And the simple reason is that it has been proven to work. Think about it, if you have this card and shop here often you get the 2 for 1 special. If you are a satisfied customer and visit the store often it becomes a no-brainier. Of course you would take the bargain. But just because it works and there are so many of them doesn’t mean that you should be boring and just do what the next guy is doing. As a small business you have the opportunity to personalise your offer. Think of ways to make it unique and tailored to fit your customers. Innovating in small ways like this can help drive customer engagement and make you the first choice in your customer's mind.
2. Invoice earlier than you think
Being an owner manager isn't easy. Between going out to get the work, ensuring that the work gets done, keeping your customers happy, paying your staff and oh yes; invoicing! It can all get a bit much and if you don't have the right systems in place it can easily escalate into a nightmare. Use the tools and resources that are available to you. For example; online software like Xero are designed to make your life easier and improve your efficiency. Get the assistance you need to help you to invoice early and do follow-ups or else it will start to cost you money.
3. Go Digital - For real this time!
For many years we have heard the cliche sayings and buzz words like; "the future is digital" or "Going paperless". Well now that reality is here and more important than ever. Over and above looking for software and technology tools that will improve your efficiency. You should be seeking ways to offer some form of your business in the digital space. Whether it be a digital product or a easier access to your service online. Your business will need a foot in the online space. This will improve your visibility to get you more customers. It also has the potential to generate additional revenue streams. And yes, there is a plethora of options online. But make your life easier by dabbling in areas of interest and playing to your strengths. For example if you own a restaurant, take beautiful pictures of your food for social media, consider online recipe books or tutorials, consider online delivery services. Really - You are only limited by your own imagination.
4. Sell your old equipment and unnecessary stock
Similar to when you look around your house for things that need to be sold at a Garage Sale, you begin to see all the clutter you may have been accumulating and looking passed. Old equipment like computers, furniture, printers and other usable tools that might not be worth much to you now and can be better off turned into cash. It would be better to have some cash in hand instead of it laying around collecting dust. So look around and see what you can convert to cash. Every little bit helps and the outcome may surprise you.
Two additional tips on this point:
Try not to be too sentimental about the items
And remember why you need to sell the item, so you don’t get stuck on its price.