Do you want to keep your cash flow flowing? Here is what you need to do.
By focusing on other things rather than improving the cash flow, you do your business a disservice. This doesn’t mean that you shouldn’t try to increase sales and focus on your brand. It just means that along with all the things that you do, you should pay sufficient attention to what is known as free cash flow. After all, if you run short on money, how will you focus on all the other areas of your business?
In the following paragraphs, we will discuss some tips to keep your cash flow pumping.
You Should Be Well Aware of Your Expenses
Providing discounts on your products is a great way to attract more customers. However, it can have a negative impact upon your cash flow. However, if you do offer discounts, you should be well aware of the costs involved. You must also know exactly how much to charge, keeping in view the profit margins. You must also know whether you are breaking even or making a loss.
Land Repeat Shoppers
Mostly, for retail businesses, repeat shoppers are important. Generally, until you reach the fourth or fifth transaction with a customer, you won’t see any profits. Therefore, you need to engage your customers in a way that they are compelled to return to your shop again and again. One of the best things you can do is to invest in shopper marketing, loyalty programs, VIP offers and similar programs. As far as freebies are concerned, you should offer them only when you can back the cost through low-cost and excess inventories. However, the add-ons should be valuable enough to work in your favor.
Come Up With Back End Products and Services
Sometimes, you know that your efforts to reel in new customers won’t be as profitable as you expected them to be. Therefore, you can create higher price points, especially on the back end products and services.
If you are one of those business owners who want to increase their sales, you should always presell your services and products. You can formulate the presale any way you want. Furthermore, you can also come up with an offer to take all of the outdated products back, at a pre-agreed rate.
Bundle Your Products and Services
By creating and offering bundles of products and services, you can offer a lot of value to your customers at a low cost. Try to be persistent with your efforts, and a time will come when you will enjoy a handsome and consistent cash flow that will do away with a majority of your business problems.