Proven Tips to Increase Cash Flow for Small Businesses
Setting and meeting financial goals is a big deal for any small business. More than half of all small businesses fail within the first year and 95% fail within the first five years, according to the Small Business Administration. The number one reason businesses fail is because they simply run out of cash. If you are looking to get the most out of your business, consider these ways to increase cash flow quickly.
Highlight Slower Days
Usually businesses will have certain days that tend to be slower than others. Capitalize on those slow days by offering special sales or deals. You’ve probably seen restaurants do this by offering drink, appetizer or meal specials on certain weekdays. Some will have a special night for families where activities are available and kid’s meals are cheap or free. During the busy nights where sales are already high–like during the weened–there will not be any special offers. Implement this with your own business to keep your sales coming in regularly throughout the week and quarter.
Create Weekly Highlights
A great way to increase sales and awareness is to highlight a product or service at least once a week. You can use social media and email newsletters to give a brief highlight and maybe a special deal offer for a specific product, package or service of the week. Make sure you are offering plenty of non-self-promotional content that is valuable to your audience so you don’t come off as spammy or self-centered as a brand.
Package Slow Items
Having trouble moving certain products? Package them with relevant items that tend to sell faster in order to spark more interest. Provide a deal when your customers want to purchase larger quantities and always make sure you combine shipping to save them as much as possible. People enjoy transparency in price and finding great bargains.
Of course, you still have a cash flow problem if you are selling, but not getting paid in full. Establish invoice practices that are prompt, getting your customers to pay while the iron is still hot and they are still strongly converted to purchase. Establish clear expectations for payments (part upfront, full upfront or 30 days out, etc.) and then be clear about what happens if payments are late.