As the owner of a new startup company, one of your biggest challenges is likely to be keeping your cash flowing. If you can’t do this, then it becomes almost impossible for you to keep your business afloat and you may well end up joining the 80 percent of businesses that fold in their first year of trading.
The good news is, although keeping your company’s cash flowing can be a challenge, it is perfectly possible, especially if you do the following:
Be Aware of Your Expenses
One of the best things you can do to keep your cash flowing consistently is to know what your regular expenses are. When you know how much money you are likely to need to cover your costs from month to month, you are more easily able to put enough of your profits aside to at least cover them, so that you won’t get into too much difficulty.
Knowing your expenses will also help you to work out just how much you can afford to discount goods and services or how many special offers you can afford to run during those times when you need to boost cash flow quickly.
If you are approaching the point where it looks like money is going to dry up, one thing that can get you out of a tight spot is discounting, or even better, bundling your goods and services to give more value to the consumer. When you do this, you should see an increase in your sales and a boost to your business bank account. Just be careful to do your sums and make sure that any offers or promotions you run will be profitable.
Sell Your Invoices
If you’ve made a lot of sales, but the payments aren’t coming in as quickly as you would like, or need, and it’s getting to the point where you’re starting to panic, you might want to consider selling your invoices, which is something you can find out more about at factoringcompany.net. Sure, you’ll have to sell them for a little less than their worth, but if that means you can pay the bills and continue trading for another month, it is worth it.
Encourage Repeat Customers
Repeat customers are the backbone of any business and something that every startup owner should be looking to encourage if they want to succeed long-term. It is also one of the best ways to keep your company’s cash flowing because it is a lot easier to convince someone who has already bought from you to come back time and time again.
You can find some good strategies for encouraging repeat business at ducttapemarketing.com, but offering a VIP loyalty scheme or discounts on repeat business are both good strategies to consider. Again, just make sure that any incentives you offer are cost effective.
In business, there are no guarantees that the cash will keep coming in, but if you incorporate the above suggestions into your business, chances are you won’t have to worry unduly about keeping the cash flowing.