Do you think you can increase your business cash flow? 🔍 Evolving Strategies

EVOLVING STRATEGIES

This week’s opportunity to evolve your strategy

Do you think you can increase your business cash flow?

The management of your business finances is crucial to the future success of your business, no matter how much money you’re bringing in. Look at the pandemic period, many successful businesses had to shut down due to lack of cash flow coming in and proper budgeting for future needs.

Your website is one of the easiest ways to drive sales for your business, keep costs low and set aside cash flow to be used as needed or to invest for future opportunities.

Websites have the lowest operating costs in comparison to other channels that customers shop like contact centers or brick & mortar locations. They’re also easier to manage, a simple build and execute with maintenance as you go in comparison to other channels. You can have high profit margins with your website when leveraging the right digital sales strategy for your business. Revenues vary by industry but on average you can increase profits by $150-$400 per customer. 

Your business finance focus should be to decrease costs and increase revenue. Even as you increase revenue, you still want to try and have as low operating costs as possible. There are entrepreneurs that run their business solo, 96% profit margins, and don’t work 24/7.

Create and run your website to run efficiently, drive sales and allow your business to continuously grow. You can have majority or all of your sales go through your website for the best financial position.

Your business finance focus:

• Increase sales revenue

• Decrease operating costs 

•  Preserve cash flow and increase business investments

How to apply this:

What you should takeaway and apply to your digital sales strategy:

1. Create and follow a budget

2. Review vendors and expenses

3. Review and audit your services

Create and follow a budget

Create a budget first to understand where your expenses are going. 99% of people are surprised how about their money is spent, and where the funds go. You think you know where your money is going and then you realize it’s not what you thought it was. 

I heard a story once that Shaq’s cable bill was $20K a month! Is if true? Likely not, but if it is how is that possible? No matter how wealthy you are. $20K a month for TV means you’re not budgeting your money. 

Start with your budget, look at where your money is going and what’s being invested and how much cash flow you have. It does depend on the industry you are in, as some have very small profit margins but if you’re solely digital it is possible to increase profits and decrease operating expenses.

Review vendors and expenses

Good opportunity to see what services your vendors offer, as most have multiple. Is there an opportunity to reduce vendors, have those vendors give you the same service and get a discount for it? Might also be an opportunity to see If the vendors you have are helping you get the return on that investment? 

Years ago I did an audit of vendors for a Telco company that had hundreds of vendors. One vendor was not providing the ROI needed, not even close to it. They were renewing every year and paying hundreds of thousands of dollars while not making that money back. In the end, the contract was not renewed, because it was a loss.

Review and audit your services

Look at the services you offer, the vendors you have and what approach you’re taking. There may be an opportunity to make some adjustments and streamline. Create processes, automate your website, and drive more sales, reduce expenses and see positive results to reach your KPIs. 

Pull results from the last 2-3 years and see what’s changed, what’s improved, what’s decreased in value and are you seeing the results you are looking for. 

Ask yourself: Do you have enough cash flow for your business in case of an emergency?

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How I can help you:

• Become a member and let’s work together to unlock digital sales and growth opportunities.

• Buy resources to define sales goals, and develop strategies to grow your business at your pace.

• Build and manage business finances to increase profits, decrease operating costs and have regular cash flow.