To grow your company, you must keep an eye on your revenue numbers. Businesses thrive when they develop strategies to drive sales to increasingly higher levels. It’s also important to make sure that this growth in revenue translates into higher cash flow and profits. Here are a few ways to for your business to increase its cash flow levels that you might not have thought about.
Grow Your Customer Base
One of the most obvious ways to increase revenues is simply to make more sales. But how would you go about increasing your sales? One of the quickest ways to increase sales is to expand your customer base. If you own a deli, perhaps you can advertise in new neighborhoods to attract more patrons. If your business sells B2B, perhaps you need to find other manufacturers and OEMs that you can sell to. Whatever your business, you need to find a marketing method that brings you more paying customers. It could be an advertising campaign that draws a different demographic, or even a Google Adwords campaign that gets interested searchers clicking over to your site.
Sell Your Old Equipment
If you can look around your business and see multiple pieces of equipment you no longer use, consider selling the equipment to recoup some of your investment. This will be more practical for businesses with relatively liquid assets (like a restaurant or a training company) and is a great way to clear clutter while getting a cashflow injection.
Sell More Stuff to Your Existing Customers
In addition to expanding your customer base, you can also make more sales by selling more often to the same customers. The largest marketing expense for your business will be paid on gaining new customers. Since your customer acquisition costs are going to be a huge ongoing expense, why not make the ones you gain even more profitable? Once you have gained a customer, look for ways to increase the number of times you sell to them. Offering additional products and services to your existing customers is an excellent way of capitalizing on your original customer acquisition cost.
To increase your existing customers’ sales revenue, you can also try to get them to buy more frequently. This can be best achieved by getting people to join your newsletter list and offering them coupons.
Use Shopping Cart Suggestions to Increase Your Average Purchase Size
Grocery stores often place tabloid magazines and candy next to the cashiers to increase impulse purchases. They realize that the checkout line is another opportunity to sell additional products. You can do the same thing in an even more targeted manner if you have an online store. Sites like Amazon.com regularly feature items related to the currently browsed item to encourage customers to buy additional stuff. Ask yourself what other items would someone who is purchasing my product or service also be interested in buying?
Take the example of an e-commerce store that sells women’s clothing. If the customer is interested in buying a new pair of shoes, perhaps your related products section can display matching handbags and belts. It naturally makes sense to feature products that complement the item your visitor is currently interested in buying.
Up-selling Your Customers on More Expensive Items
In the previous section, cross-selling was used to sell related products to your customers. These items vary in price, and the only reason they are being featured is because they are related to the item the customer is currently browsing. What you can also do is to try up-selling your customers. Using the up-selling technique, you will tell your customer during checkout that you have an even better version of the product or service they are currently buying. This is a great way to increase the size of a customer’s shopping cart just as they are checking out.
A related sales tactic is down-selling. When down-selling, you are trying to capture a visitor who has left your page without buying anything. A typical down-sell would be to offer a less fully featured product or service at a discount. Since a visitor who leaves doesn’t bring you any revenue, you’re trying to salvage at least a little bit of revenue from the customer before they leave.
Ultimately, the best ways to increase cash flow involve thinking outside of the box. Try some of these suggestions, and evaluate your practices to see how you might be able to increase your profit.