Small business cash flow can be a difficult concept to master. When you’re still developing your business identity and getting yourself off the ground, how do you keep the money coming in regularly? All businesses love it when their profits soar, however, good times are almost always followed by bad. A more practical goal for an SME planning for long-term success is to learn how to encourage consistent cash flow. The figures may change, but money must always be flowing through your business if you’re going to be successful. Here are three key tips to maintain consistent cash flow.
Understand your expenses
Many businesses are in so much of a rush to drive sales through heavy discounts, coupons, and offers that they forget to take their costs into account. A high volume of sales isn’t going to help you if you’re selling all of that merchandise at a loss. Understand your expenses in every product or service that you sell, and this will help you establish a minimum price you can sell for while still making a profit.
Add value through bundles
Anything you can do to add perceived value for your customers will help encourage sales. Bundling together some of your products and services is a great way of doing just that – adding both perceived and real value, without incurring much in the way of costs. It allows you to increase the price-point of certain items, while still making them appear to customers to be great value for money.
Seek repeat business
Customer loyalty is one of the most effective ways to keep your cash flow consistent, especially while your business is developing and your overall customer base is growing. Being a small business allows you to give a more personal level of service to customers. It’s worth the effort to do so because the more individual you can make your service to the needs of the customer, the more readily they’ll return.
Put these three tips to the test – maintaining a consistent small business cash flow is essential for establishing steady growth, so it’s always worth the effort.
Consistent cash flow – where to find out more
Find out more about our solutions for cash flow and other types of business funding on our Alternative Finance page. Please get in touch if you’d like to discuss how we can help with your business funding.