I want to discuss with you some tips to boost the cash flow in your business.
Profit and cash flow are not the same. Profit is just a theory until you really turn it into cash and you can really go broke while trying to make and while making actually a very healthy profit.
Here are five ways to supercharge your cash flow.
The first one is I want you to look at selling more big-margin goods or services. Why not move to products or services that are offering higher margins, right? This may mean buying a slightly more expensive product than you could make at a higher profit. It may mean buying smarter, or sometimes a lower priced item that's going to offer a greater margin or maybe packaging your services to where you provide more value at a lesser cost or time commitment to you.
You should know exactly how much each item is or the service and how much you make on each of those items and then emphasize those you would make the most money on. Even if you're in the service industry, you should consider which services offer you the most money for the least amount of effort. It's as simple as that.
The number two cash flow strategy is no discounting. If you constantly are discounting, why have a regular price? This applies to businesses that are always discounting instead of coming up with an effective marketing plan or an actual reason to go ahead. By discounting, it does not only costs you money, but it gives the impression that your normal prices are just a ripoff.
You might find customers are holding off buying from you thinking that something that costs $100 today, may just be $80 tomorrow. It's better to not discount and simply offer more added value to your customers.
The third one is to stop running ads that don't work. If your ads are not making any money for you, stop running them. It's as simple as that. It's important to test and measure and really sit down and take a look at making sure that you're getting the maximum return for your advertising investment, right
When you find one that works, keep using it. This might only come after a period of testing and measuring, and it may take six months or more before you find the right ad but you need to view this outlay as an investment in your business. It's an investment and finding out what works and creating that magic ad.
Number four is financing. If you got a number of loans out there, you might need to consolidate them into one. This gives you the advantage of paying only one interest rate and one repayment. Shop around for the best terms out there and the best value for your business. This doesn't mean always the lowest nominal rate. Make sure that you choose one that fits your particular needs. With banks becoming more and more competitive out there, there's a bank willing to give you a loan for less. If your bank isn't willing to match their rate then try another. Banks might also you have to look at this because banks might also offer you other value than those low rates that could make it worth your while as well.
Number five is finding that silver bullet in your business. Every business has something that they are doing or not doing that when really attack will generate instant cash flow. So dig deep and try to sit down to take a look at what parts of your business you are not taking advantage of.
These strategies lead to real people achieving real results. So if you want to learn more schedule a free strategy session with me to find those hidden dollars in your business that will allow you to move to the next level.
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