Cashflow is the mainstay of every business, regardless of the products and services they offer. In healthy business circumstances, a positive cash flow is the top marker of success. Positive cash flow indicates that the company’s assets are increasing, enough to provide a buffer against future financial challenges. Too many entrepreneurs fail in their first five years of their business because of the absence of consistent cash flow.
My entrepreneurship experience changed when I realized how important and possible it is to generate consistent positive cash flow in my business. In a few years, I have transitioned from an entrepreneur with a struggling cash flow to a successful leader, trainer and influencer. I have the honour of educating others on how to generate income in various ways.
ARTICLES TO SEE: PROVEN STRATEGIES FOR IMPROVED CASHFLOW & BUSINESS GROWTH
Here are 4 of my top strategies to keep cashflow consistent in your business:
- Analyze your expenses: For online businesses, expenses may not include rent, tax tariffs, or utility bills. Most expenses for online business owners include ads rate, organic advertisement bills, and several subscription fees. Contrary to popular opinion, I do not agree that running a discount or giving a bonus all through the year will give you a positive cash flow. In some cases, it could lead to loss and may affect your cash flow. Among other factors, you need to identify the overall cost per tool, product, ads, and expenses you spend. How else will you know you are operating at a loss? Do the math and calculate your expenses.
- Optimize pricing: If your cash flow is low, it could be an indicator to increase the prices of your services and products. ask yourself the following as you get started:
- How much do my competitors charge?
- Do my prices compensate for the effort I put into creating my products?
- Are my products viewed as cheap or valuable?
- Have the prices for inventory increased?
The questions will help you find a balance between your current price and your potential prices. Of course, selling your products at extremely high costs may seem unrealistic. Yet, if your prices are too low, you could be selling yourself short and that is one of the causes of a poor cash flow.
3. Expand your sales market: With entrepreneurship, it’s best to diversify products and markets. There is always room for improvement and market expansion. I am a coach, a network marketer, an author, a public speaker – all of these are complementary. If you are a network marketer, you could do more with affiliate marketing, digital marketing, or any other business that compliments you the most. Another strategy for consistent cash flow is to brainstorm new ideas every day as a part of your process. So, get some ideas, sit down with a cup of coffee and consider the various ways to expand your market.
4. Satisfy your customers always: Loyal customers are satisfied customers and they are valuable to your business. While the quality of your product may be a determining factor for customer loyalty, you can attract them more when you prioritize satisfaction. Why should your loyal customer stick with you every day? Why should they always buy your product? Why should a one-time buyer consider becoming a returning client? The answers lie in your loyalty program. Devote your energy towards getting returning clients and more new clients.
Network marketing, a product-driven business that offers shopper bonuses or awards, is a great strategy for sustaining your clients. These bonuses and free opportunities that the industry offers are popular lead generators, and they can help you attract new customers.
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