When looking at a normal business day, it is quite easy to identify one of the key elements of a successful business. On a day to day basis, this is cash flow. Many entrepreneurs even went as far as saying that the importance of Company cash flow in a business only comes second to profit.
A start up, or any business for that matter, is reliant on cash flow. It is almost an impossible task to start a business without having cash at hand. It is very important that a start-up entrepreneur needs to establish Company cash flow as quickly as they can in the first year of doing business. An independent study has shown that when an entrepreneur is able to establish this, their chances of running a profitable business in the following five years are drastically increased.
With the banks becoming stricter on their lending criteria, it is easy for entrepreneurs to lose hope even before they have opened their business. Some may resort to taking loans with friends or family where others make maximum use of their credit cards. There are, however, more creative ways to generate the much needed Company cash flow.
One of the best ways to get the cash flowing in your business is to lead the customers to buy a specific product off your shelves. You will have to strategically select these products to ensure that you will receive maximum profit from that product. A great place to start is with Online Marketing.
A great way to ensure that you have stable Company cash flow in your business, is to ask for a deposit or something similar. This works well if you have a business that delivers services to secure a booking. The same can work for product based businesses. You can ask for a deposit for pre-orders to secure the product for the customers. You should then keep in mind that you will have to deliver on your promises. If you betray the trust of your customers at this stage, it will impact your business negatively.
Stay away from giving discount:
A cash flow killer is giving discount. This is one of the main factors that can contribute to smaller profit margins and eventually a lack in Company cash flow. An easy way to get around giving discount, is to offer other benefits for buying from your business. You can offer incentives that will ensure that customers come back to your business. It is also important to let the customer know about the quality of your products. When people know that they get a quality product, they will be more than willing to pay for it. Here is a great Article why small Companies should stay away from giving discount.
To be clear, there are many more ways out there to establish Company cash flow in your business. These are just some of the most popular methods that are used in businesses today. An important thing is to implement these strategies without the customer even knowing it.
Once you have established a method that works best for your business, stick with it. Just remember that the market is ever changing and you might need to adapt your methods from time to time. It is always a good idea to have a back-up plan, for when a plan is no longer effective.
If you do not have a Company yet, then we can help you Register you own Company.