Cash NOW Strategies

Something I’ve noticed, in reading as well as in discussions with clients and business associates, is that there are increased observations of “things slowing down.” At first, it was welcomed by some businesses. After all, many had been dealing with high demand for their products and services along with labor and material shortages. Slowing down meant they got a bit of a “breather” and return to “normal.”

Now, it’s turning into something a bit more concerning for people as they hear more and more about a looming recession…not a recession as deep as in 2008, but one that may last a bit longer than the 2020 one.

If you’ve followed some of my other writings, or talked with me in the last few months, you’ve heard me say “If a rising tide carries all boats, then a receding tide reveals the rocks, wrecks, and reefs, and demands better navigation and seamanship from the captain and the crew.”

So, I’m going to highlight strategies that small business owners can use to improve Cash and Cashflow, which are the key elements of “staying afloat and making progress” all the time, but PARTICULARLY as things slow down. I won’t be going into detail (that could be a white paper, or even a book!), but awareness of the strategies to focus on and implement sooner rather than later could make a real difference for you.

Here we go…

• Test & Measuring System for Everything - Avoid investing time / money / effort into products, services, people, etc. that aren’t producing.
  
• Improve Conversion Rates with Scripts (at a minimum) and Sales Training
  
• Raise Prices - We’re still in an inflationary environment…and again, scripts and explanations can help.
  
• Cross-sell & Upsell – This is useful particularly if you’re in retail, possibly in services.
  
• Public Relations Article - Let people know you’re available and can help.
  
• Direct Mail to Existing and Previous Clients With Telemarketing Back-up – Remember, they may not know all that they can purchase through you. BTW, Lumpy Mail with email in advance is even more effective than straight direct mail.
  
• Cold Phone Calls and Use a Script – Cold-calling works, but does require a “certain mindset,” so start with doing it sooner if you are going to use it.
  
• Pre-paid Sales – Offer things that customers know that they will want in the future and have the money now to purchase.
  
• Use a Debt Collection Agency – It can feel harsh, but it is your money being loaned out at a low or no interest rate if you don’t collect.
  
• Closed Door Sales – Holding these sales and reminding people to bring a friend is especially useful in retail / B2C.
  
• Packaged Offer – Quick-moving Line With Slow-moving Line - Clear your inventories, particularly of slow-moving items, before a slowing economy “glues them” to your shelves.
  
• Reverse Host Beneficiary - Sell other people’s product for a % of the revenue if you have a larger base of repeat customers.
  
• Sell Excess Assets – Do this particularly if there is real residual value.
  
• Sales Team Incentives - Keep ‘em focused on what provides the most profit, or what you need to move out of inventory.
  
• Split Level Pricing – Base pricing on type of user (retail vs. wholesale, professional vs. consumer, higher volume purchaser vs. lower, etc.).
  
• Referrals - Offer a referral or non-referral price, provide incentives to people who provide referrals, particularly if the referral buys. Also, ask for a referral post-sale.

WHEW, that’s a lot of potential things to do. If you know what you want to implement and know how already…DON’T WAIT!

If you aren’t sure what to do, or how…you know who to call.

See y’all next time!