Improving Your CASH Flow - Part 2
The key for all businesses will be to strengthen their CASH flow. So how do we get our CASH Flow better than it is now? Here some more strategies that you can put in place NOW to get on track.
- Don't assume your customers know your products, especially new products - just because you have them on display doesn't mean that the product will register with them. So when you get a new product tell the customers! E-mail your database and make the product sound exciting, use a HTML format rather than an attachment - it's too easy to not open an attachment and delete the e-mail.
- Your new products - what goes with what? Our deli owner has a new range of cheese crackers, put them with the cheeses, train your staff to offer the product when a customer buys cheese, have a sample handy to offer them...before you sell the cracker. Apply the BNI mantra ‘Givers Gain".
- Train your staff to be as committed and passionate about the business as you are about your business. There is no substitute for enthusiasm and having that enthusiasm will pay off in the long run.
- Do you know your ant trails? Do you know how people meander through your shop? The way they travel is very important for how you position your products. Do you think that I mean a retail shop front???
- Hold a theme night with a range of complementary products and invite those on your database who have shown an interest in your ‘hero' product. VIP - make sure you ask them to bring a friend.
- Supplier support. You should always seek to have your supplier give some tangible support for new products and theme nights, by this I mean a case of crackers to be used for promotional purposes; NOT to be used as a way of lowering your cost of goods sold, that will come from volume, the promotional products are to generate the volume that gives you the volume discount.
- If you are a retail business negotiate a settlement discount with the suppliers of your fast moving products. If you negotiate a 10% for payment in 10 days settlement discount it will improve your gross margin by just under 5%, straight to the bottom line.
If you want to be effective at improving your cash flow you need to know your numbers. Geelong Business Services makes sure that your bookkeeping gives you the information you need to improve your cash flow.
Always remember that profit is not the same as cash flow and cash flow is the life blood of every business.
Our Geelong business clients have their focus on income generating activities for their business, not on shuffling the paperwork.