In business cash is king. Particularly for small businesses who generally don’t have heaps of cash reserves. Here are seven ways to bring in more cash for your business.
What can you do to keep money coming in? Evaluate your businesses assets. This could be machinery, your brand and your personnel.
Could you deliver parcels for Amazon in your taxi?
It’s time to get creative. If you’re not a creative thinker then speak to people or businesses (Accounting Inc.) which are. If you have a negative outlook, you’ll get lousy little results.
Think about what you currently have working for you, and how you can do more with the assets you already have.
2. Think digital
Can potential customers find you? A pre-requisite of business in 2020 is a great website. The yellow pages are now online. Apps such as Facebook, Instagram and LinkedIn allow you to market to your audience and connect with customers. You should consider getting a website built. This will help improve your presence online.
There are countless other apps which can be used to improve your offering. You can schedule appointments, hold meetings online. Manage stock, send purchase orders, predict cashflows and collect payments from customers.
3. Don’t miss an opportunity
Businesses can be guilty of letting sales slip through the net. Mainly due to not having a robust system to follow up with enquiries. Not picking the phone up and responding to an enquiry can mean thousands of pounds going into a competitor’s pocket.
Only a very small proportion of leads are ready to buy from service businesses. Therefore, a system is needed to follow up with leads until they are ready to buy. It’s your job to make sure they buy from you and not your competitors.
4. Reduce your debtor days
Speed up your cash inflow by reducing your debtor days. Think about payment on order if you’re working on a project basis. Or if you’re on a retainer, consider setting up monthly payments. Automate your invoicing and set up chasers. GoCardless is great to collect recurring payments. Apps like Chaser can automate your credit control.
5. Increase your creditor days
Negotiate payment terms with your suppliers. Ask for a payment holiday. Use a credit card, but ensure you pay off the balance in full each month. This can slow down cash outflows. Increasing cash in the bank.
6. Offer discounts and promotions
Almost everyone is having a tough time right now. If you can, you may want to consider special promotions to attract customers. Things like Black Friday and Cyber Monday offer deals to incentivise consumers. What would be a great offering which will bring in more cash for your business?
7. Claim support
Local authorities are also issuing grants for businesses with premises who have been forced to close.
Speak to your accountant about your options. If your company paid corporation tax last year and made a loss in the current year. You could be entitled to a refund of corporation tax.
If you’d like to find out more about cash boosting strategies for you and your business, please get in touch!