Use this check-list of 21 ways to improve cash flow in your Small Business. Why is it important to Improve Cash flow? Cashflow or real cash often referred to as the cash flow of the business, and I guess that’s true. Life will soon leave a body devoid of blood, so a company will similarly perish without cash flow – a flow of money flowing throughout it’s working capital cycle.
Improve cash flow in your business by using the following checklist to pump up quickly your vital business signs
- Have a Test & Measure system for everything.
- Improve cash flow by enhancing Conversion Rates – Use Phone Scripts for all, Incoming and Outgoing Sales Calls.
- Put Your Prices Up – Test the Market. This tactic is the fastest way to improve cash flow in your business.
- Increase the Average (£) Sale – Cross Sell & Up Sell; have a “Magic Question” (a fast way to improve cash flow)
- Promote the Business – With A Public Relations article.
- Increase The Average Number of Customer Visits, Send Direct Mail “Monthly Offers” to Existing Clients, With Telephone Follow-Up. (use phone script).
- Increase The Number of Leads – Targeted “New Prospects, With a Great Offer – Use Sale Scripts.
- Negotiate to Extend Creditor Credit – short term improves cash flow by paying your creditors slower.
- Encourage and Accept Pre-Payments for Special Orders.
- Implement a Debtor Collection System – Use a Debt Collection Service for overdue Debtors – Usually the greatest opportunity to improve cash flow in most businesses who extend credit to their customers.
- Have Closed Door Sales – Invite Regular Customers to “Bring a Friend” (Makes them both feel important).
- Promote Packaged Offers – Bundle Quick Moving Lines With a Slow Moving Line (Reduces Stock).
- Use Product Scarcity – Add-On Sale – (limited campaign this week only).
- Use Affiliates (sell other people’s product for % commission).
- Increase Stock Turns – Reduce Stock, turn it back into liquid cash (get slow moving stock out FAST).
- Events – novelty events to generate publicity and build loyalty.
- Sell off excess and under-used assets.
- Lots of Small Ads – (classified – spot ads – for lead generation).
- Sales Team Incentives – (Rewards based on profit margins)
- Split Level Pricing (based on volume to your best customers)
- Referrals have a referral or non-referral prices. When on the Phone, ask for a referral after the sale.
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