Five Ways to Steadily Improve Cash Flow in Your Business!

 

How many profitable companies can you think of that had suffered considerable damage because of cash flow problems?

 

 

 

 

Many businesses are struggling to survive or went bankrupt due to poor financial management – I am sure you can name a few!!

Sometimes, business owners, entrepreneurs and managers neglect the things that really matter – cashflow.

Whenever many people see signs of business success, they often drop the guards down, believing that finance and income streams are secure.

But the harsh reality is that at any given point in time, your business operations can suddenly stop functioning and steer towards a negative outcome.

If you’re thinking of ways to improve and steadily increase your cash flow, take note, and start implementing the strategies below.

1.Perform Accurate Financial Forecasts and Scenario planning

 

 

 

 

There are more business owners than you’d think who are vague about what it takes to grow their business. When entrepreneurs usually think of terms such as scaling or business growth, sometimes many fail to think about all the costs and expenses that are likely to arise and tends to focus mostly on the likely increase in revenue profits.

One way to improve your cash flow is to improve the accuracy of your financial forecasts. But a big mistake is being unrealistic  – you want to be an optimistic pessimist.

By this, I mean you should create multiple realistic and possible scenarios that could occur. Usually, entrepreneurs tend to be overly optimistic when calculating all the potential outcomes. However, it would be best if you were ruthless about the possible results – good and bad.

Analyse and use past data instead of using a brand-new model. Recorded data and information from the past is far more accurate to base your financial forecasting and assumptions off and tends to more realistic than just guessing.

However, it is also important to take into consideration the latest developments in your industry and whats going on in the economy – up to date information.

Look at the different expenses and see where you have the most control. It’s way easier to measure and calculate the volume of your costs than it is to calculate your revenue growth, so start there.

You forecast also need to be updated using the actual results. Please don’t leave it to catch dust once after you create it, but reassess your methods and practices to see how close you are to what you initially forecasted. Then, adjust those areas in your business frameworks with any new data.

Accurate financial forecasts ultimately lead to better business planning,  financial thinking, and improved decision making that’s more strategic and rewarding for your cash flow.

2.Cut Down on Operating Expenses

Are you keeping an eye on how you can cut down on some of your operating expenses?

Track your financial records and statements and look at where your money is going ( manage the cash outflows as well as the cash inflows). I can bet that there’s at least one service or subscription you’re paying for that isn’t really adding much value to your business.

To stay safe, double-check with an accountant or financial advisor with what you might decide to stop paying for. This prevents any significant repercussions that could harm your business revenue or profits.

3. Practise Early Payments

Not only should you pay early to avoid penalty costs and get overcharged with future suppliers, but you should also promote the concept of getting your customers to not pay you later than when they really should be.

One good way to do this is by using incentives such as discounts, or even by upselling them on special offers if they pay early.

If you haven’t already, take the time to outline or update on your financial plan for your business to reduce cash output.

But, always be on time and don’t miss deadlines. You should also be sending invoices earlier so you can get paid faster. If you’re not already, consider using invoice software so that your customer payments aren’t overdue.

4.Experiment With Different Pricing Strategies

Don’t be afraid to test out different pricing strategies and structures to see which works best.

One way to improve your cash flow is to increase your prices. Most business owners are afraid to do so, but it would only be bad if you miscommunicated or if it’s an unreasonable, drastic change. E.g. increasing your product from £50 to £1000.

One example of a good pricing model is monthly subscriptions. Instead of having a one-time charging price for a high-ticket product, you could change it to a subscription model, which is great for recurring income.

Subscriptions are also effective for customer retention. It also makes your product more affordable and easier to pay for those customers who might not have been able to pay for your product in the first place.

Take the chance to find out how far your audience is willing to go. And don’t forget to seek feedback and reviews when you’re changing the pricing structure of your business.

5. Manage The Different Sections That Influence Your Cash Flow

Often, people believe that making more money will resolve their issues, but that’s far from the truth. The other half of the answer lies behind how you manage your money.

Different sections influence your cash flow, including:

  • Inventory and Stock Control (Product base business)
  • Revenue generation strategies
  • Expenses Management Policy
  • Cost of Goods/ Services Sold
  • Accounts receivable/ Debtors
  • Accounts payable/ Creditors

Sometimes, you’ll find items in your inventory that are slower than some of the other items you already have.

When you’re tracking your metrics, you might also notice that there are certain features or products that a very small percentage or even no customers at all are paying for. If that’s the case, cut that out your inventory – what’s the point of buying more of something that’s not going to make you profit?

Conclusion

It is vital to monitor your cash flow and to pinpoint where the financial gaps are in your business consistently.

Whenever you notice a problem, the right answer may not always be to dispose of the source completely. Instead, it might just need to be looked at a different perspective so you can take on a new approach that works better.

If you’re looking for a proven blueprint to curtail expenses, and maximise your business profits and maintain positive cash flow, grab my free e-book right here.

You can also get in touch if you are looking for proven strategies and techniques to improve your cash flow – Use the link here or email us at admin@racmacs.com.

#finance #money #business #success #entrepreneur

11 Benefits of Effective Social Media Marketing Strategies to Grow Your Business

Are you maximising your sources of income through digital marketing to access untapped profitability?

If not, you’re putting yourself at a huge disadvantage.

Social media banner
Social Media Marketing is crucial to growing your Business

 

Social media plays a big part in digital marketing. With billions of worldwide social media users who are potential customers, there are several key benefits of using social media marketing strategies to scale your revenue.

See below to find out the key benefits social media offer that you might be missing out on to scale your business.

  1. Brand Recognition

The number of social media users continues to rapidly increase…

In every second that passes, 11 more people use social media for the first time. And today in 2020, about 50% of the worldwide population are active social media users.

Social media makes it easier to position yourself in front of your audience and gain traction in your niche to become more recognizable.

Promoting your business through the means of social media helps to spread brand awareness. This means you won’t be a complete stranger when people come across you when browsing online. 

Social Media Builds Brand Awareness

 

 

 

  1. Resonate Closely With Your Audience

Many customers make and showcase products that don’t sell.

Because no matter how good your products are if it does not appeal to your target customers and they are not made aware of the features and benefits if it will not sell –  as customers have lots of alternative products to choose.

Corroborate trust, social authority and work on growing your followers.

You need something new, refurbished, and innovative to push consumers to take action. Platforms such as Instagram are great for revealing some of the unseen sides of your brand.

Reveal more about the personalities behind your brand and create a real human bond with your followers.

It makes your consumers more inclined to want to see more from you. In comparison to traditional marketing methods, you’re drawing in more people to consume your content as they’ll find you less intimidating, sincere, and trustworthy.

Exposing some of your vulnerabilities and personal characteristics gives consumers the chance to closely resonate with you. It’s also a friendly reminder that you’re not a robot, but you’re human too. You’re very similar, and you’re not just someone who’s trying to sell to them 24/7.

  1. Identified As Thought-Leader

Now that social media exists, it’s one great way to build on your credibility and social status.

Word of mouth is one of the most compelling marketing strategies in the book. If you’re identified as a thought leader in your niche, you’ll gain access to various fresh networks. So, focus on developing a reputable brand that’s going to appeal to consumers.

Once you’re identified as a thought-leader, people are going to assume you have the answers which can lead to an increase in traffic. This steers to the next point…

Social Media can drive traffic to your website

  1. Larger Volume of Traffic

Did you know that Facebook stories have around 500 million daily viewers?

Facebook and Instagram posts or stories that include a call-to-action is a smart and easy way to drive traffic to your website.

Assuming the copy and content is good, readers are going to be compelled to take action. Or even out of curiosity, they’ll at least want to check out what you’ve got in store for them.

Leads are potential customers with interest in your products or services

 

 

  1. Capture Leads

You can leverage off social media to acquire more leads and get them into the pipeline. It certainly counts towards taking your business revenue to the next level by directly connecting with potential buyers.

An exceptional example to learn from here is Jason Capital.

The way he promotes his programme ‘Social Media Boss’ is phenomenal. It’s a classic example of a sales funnel and here’s how it goes.

He promotes his ebook (lead magnet) on his Instagram stories where you can swipe up on a link to get it for free. But in exchange, you give your email. Shortly after, it takes the reader into an email sequence where he sells them his programme.

  1. Influencer Collaborations

Partnering with other influencers in your industry gives you access to a new market you might not have managed to reach.

Often, it’s a win-win situation for both parties involved. Shout-outs from influential figures with a large follower base supports the growth of your business (there are some disadvantages to this in terms of longevity and quality of followers).

The strategy also has an influence on your social status. With the right partnership, you’ll be setting yourself up for further sales, brand awareness, and growth.

  1. Viral Posts

You can maximise your outreach and marketing efforts by making use of the different features such as hashtags, share buttons, and reposting.

Sometimes, one of your posts can suddenly blow up and go viral out of nowhere. This leads to an abnormal, exponential amount of growth in a very short period amount of time.

But always aim to provide good consistent content to your audience. Don’t be that sleazy person who keeps on advertising and posting promotional content all the time.

A CRM system helps businesses to build customer relationships

  1. Audience Engagement

Communication is a two way street. Stay active, post daily and be sure to respond to your audience.

Online forums are a great place to engage in conversations. You can easily learn more about them and find deeper information regarding their pain points, needs and desires.

Social media as a whole, is one of the best places for interacting with consumers. Use it to share content such as blogs, podcasts or videos. Then demonstrate your industry expertise and knowledge by replying to any queries people might have and answering questions.

Measuring relevant metrics are fundamental to assess the Marketing Campaign

  1. Track Metrics

Data-driven resources grants you access to track metrics. Not just for your own business but your competitors too. If you use the information correctly, it’s one smart way to skyrocket your income streams through higher performance in business operations.

Tools like Google Analytics, Instagram insights and SEMrush give you the chance to see what’s performing well and what isn’t.

  1. Industry News

Thanks to social media, it’s near impossible to not be informed and keep on top of all the news and trends you need to be aware of.

Additionally, you can keep a good watch on your competitors. It’s not difficult to see how and what they’re doing differently. E.g. what type of content they’re putting out, what time they’re posting, and how they communicate with customers.

  1. Targeted Advertisements

Paid ads generally perform well for converting sales and generating new leads.

As well as advertising, you can test different types of copy and ads to see what gets the most results. An advantage of using social media is that you can repeatedly test on your audience and refine your marketing strategies each time.

Because every platform is different, it’s important you optimize for each one.

No matter what stage of the life cycle potential customers are in, you’ll be capable of targeting new potential customers (no matter what stage of the lifecycle or buyer’s journey they’re in).

Use Social media to showcase the creative side of your business.

Conclusion

The world is constantly changing. With A.I and technology continuing to evolve alongside your audience, it’s important to continuously make tweaks to your business model.

Are you keeping up with the trend or are you being left behind? Enhance your sales and business profits – register for my webinar here or book a free call with us to start making a bigger impact.

In contrast to the past, a lot has changed. Especially with the way businesses market their products and services. And social media is a prime example of that.

Are there any other benefits you can think of? Comment below!

Five Reasons Your Business Needs Digital Marketing Strategies to Survive

Are you looking for long-term success in your business?

On average, people who use the internet spend 80% of their time on social media.

27% of internet users say they find new products through paid social ads, followed by SEO, TV ads and word of mouth marketing.

Without using these digital platforms to your advantage, it’s going to be a challenge to achieve long term success.

In this article, I’ll share with you the 5 main reasons why your business needs digital marketing strategies in order to survive and achieve financial success.

  1. Online Presence and Brand Awareness

Marketing

In a rapidly evolving world of technology, nearly everyone uses a device to consume content online. To be specific, we’re looking at about 3.8 billion online consumers.

More companies are transitioning from traditional marketing to digital marketing…

And this gives them more leverage.

They now have access to untapped profitability by having a larger outreach to potential customers and spreading brand awareness across multiple social channels.

It’s important to consistently post quality content so you establish an online presence people are familiar with. What this is also going to create is a flow of traffic that will convert consumers into leads. Then eventually, into happy customers.

No online presence means you’re limiting your audience outreach to a physical location. 

  1. Customer Insights

Customer relationship management

 

What other better way to learn about your business than directly asking your customers?

 

Thanks to the internet, it’s very easy to connect with your audience. And it’s not too difficult to find the information you’re looking for.

Here’s the sort of valuable information you could learn about your customers from their insights:

    • Needs and desires
    • Pain points
    • Fears and frustrations
    • Interests and preferences
    • Social media hangouts

Besides your customers, you’ll also learn about your competitors. Some of your customers might be buying from them, and have a preference with what they like more about what they are doing that you’re not.

For example, email marketing gives you the chance to speak to your subscribers directly. And this is where you can ask for things like feedback. This also goes a long way with developing a personal connection as well as loyalty and trust.

Ultimately, it leads to better service and gives the clarity you need. You can use the game-changing knowledge to close the gaps in your business.

  1. Building Trust and Relationships

Imagine you’re constantly giving away golden nuggets in your content for free. Your readers are going to love your brand because of how much value they’re getting from you.

“If the free content is this good, I wonder how good the premium content is…”

This is why it’s important to put your audience first and help them with their needs because this is what’s going to form the bond between you.

After being familiar with your brand and becoming long-term consumers who trust you, at one point they’ll feel ready to take the next step.

  1. Industry Authority

Consistency alongside quality content is the reason why consumers are going to come back to you. If you can keep giving them exactly what they want, you’re going to turn casual readers into hardcore fans.

Before you know it, they’ll come to realise you’re an expert for solving a particular problem that makes their lives easier.

As a result, you’re going to be recognized as an authority figure in your niche…

Whenever there’s a specific need or desire they know you specialize in, they’ll be coming to you for the answers.

  1. Easy to Access

The internet makes it very easy to contact and interact with someone located on the other side of the world. In comparison to traditional marketing, customers can access your business from the comfort of their own homes.

The key takeaway with digital marketing is that you have a greater chance of generating leads and sales. There’s huge potential in scaling your business and expanding your customer base!

Conclusion

Increase the flexibility and the value of your business operations by taking advantage of digital marketing. Another smart strategy to consider is to outsource the work to professionals who are better than yourself.

You should be allowing yourself to focus on the core areas of your business. Let the other specialists handle the smaller priority tasks that need to be completed at a high standard.

Not sure what to invest in, who to hire or where you should start?

Book a free discovery call with us here and we’ll help put you on the right path to achieving your business goals and objectives.