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9 Ways to Increase Cashflow for Small Business Growth

Cashflow Idea No. 1. Use 'cashflow' sales checklists. For sales people, get them to ask every single customer to make another 'add-on' purchase with the one they've already made. A great way to do this is to have a shopping 'checklist' of what the customer could buy.

Cashflow Idea No. 2. Use 'cashflow' payment checklists. For your administration team. Have a checklist of your customers and when their payments are due. Set up reminder e-mails/sms's/and faxes for each customer to ensure their payment is received on time.

Cashflow Idea No. 3. Increase your prices. Most business people are so scared of increasing their prices. Yet when you do you'll notice a couple of things happen. Firstly, 'nothing' may happen! That's the ideal. Secondly you may lose a couple of customers, but they'll typically be the 'hard' ones to deal with. If you increase your prices by 5 or even 10% across the board you've got heaps more profitability, and more room to move in giving great service.

Cashflow Idea No. 4. Invite your past Customers to buy from you again. Collect your customers details and invite them to come back to your business. Make them an offer, have a VIP sale night, give them a gift cheque to pay for the first part of their purchase, send them a monthly newsletter, telemarket them or let them know you've got a gift waiting for them when they call back.

Cashflow Idea No. 5. Change your trading terms. Good cashflow is all about getting your money in as quick as you can, and paying it out as slow as you can. So change your trading terms to get your sales income in as quick as possible. If you're at 30 days, change it to 14, 7 or even COD. The quicker your terms, the better your cashflow.

Cashflow Idea No. 6. Pay out slowly. The other part of having good cashflow is paying out your suppliers 'slowly'. Do it slowly, but keep a good relationship with your suppliers. So find out when is 'acceptable' for them. Currently, you may be paying on 30 days. Yet they may accept 45 or 60. If that's the case you'll have another 15 to 30 days to use the money.

Also consider paying on your credit cards. That way you'll get an extra 30 to 55 days interest free.

Ideally try and follow the 7/60 rule. Have your money come in within 7 days, and pay your bills around 60 days.

Cashflow Idea No. 7. Accept only 'good' customers. In light of the previous two points, only deal with customers that will gladly follow your trading terms. You may not like turning your back on some 'slow' customers, but it's worth it when you get all 'fast' paying customers.

Cashflow Idea No. 8. Use only profitable marketing. Try, test and measure all of your marketing. Financially analyse each marketing campaign so that you know it's making a profit or a loss. Then use only the profitable ones. You'll probably find that you're wasting money on some marketing that isn't bringing you in any money.

If you're not marketing, start testing some small ads/flyers/e-mails and keep going until you find something that works, with an offer that works in an ad that works. If you're already advertising, test your headline, test other offers, test other mediums.

Cashflow Idea No. 9. Get someone else to endorse you Find someone with a database that's full of people who suit your target market, work out a relationship whereby you both end up winning and have them endorse you to their database. You may do the same for them, as did a hairdresser and a gymnasium, or a restaurant and a menswear shop.

These 9 ideas can increase your cashflow, and thereby increase your small business growth. So take each idea over the next 9 days and try each one in your business.

Copyright © 2005 by Casey Gollan. All Rights Reserved



About the author:

Casey Gollan, The Business Growth Specialist, the specialist who grows $1 Million p.a. small businesses into $2 to $5 Million p.a. businesses over a 2 to 3 year period. To learn more about Casey's Business Growth Program, visit his site and sign up for 'The 23 Secrets of Business Growth' 2 hour audio program for FREE.

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