2022 brought the highest inflation in 40 years. A recession is looming, and just about everyone’s more strapped for cash than usual.
If you’ve been a pro at managing your cash flow, you’re unlikely to be in a bind even when markets are leaner. But you can use this as an opportunity to brainstorm innovative ways to add revenue streams and generate cash that will serve your business both now and on the other side of an economic downturn.
Here are five cash-flow boosts to consider.
1. Evaluate your current company assets
Take a look at your assets, both fixed and human. Could you make slight pivots to create a new form of income?
For instance, if you run a coffee shop or restaurant, could you start a delivery service or offer a drive-thru pickup? Should you charge for delivery?
Could you rent out space in your office? Could idle employees be doing other tasks that could bring in extra income (perhaps they could handle those rental agreements)?
Think about what you currently have and how you can do more with them.
2. Experiment with value-added products or services
Consider expanding your offerings in ways that align with your business’ narrative (think painters selling paint brushes and paint, or mechanics teaching a basic car mechanics course to the public).
Or start selling business merch. This works especially well if you collaborate with a charity, or another business, and create a product to sell together. Make it fun for your customers by having them vote on what you’ll sell (toque, tshirt, mug, etc.), or let customers compete on a design.
3. Follow up on accounts receivable and negotiate a plan
Contact any late payers to ask them to settle their accounts. A follow-up phone call or face-to-face meeting is often more effective.
Then offer payment options that allow money to come in quickly. You might consider introducing credit card payment, 0% financing, or a cash discount for paying early.
4. Send invoices digitally and offer digital payment options
Customers got used to making purchases digitally during the pandemic. Continue to give your customers ways to pay that are convenient for them, without having to visit your office or store.
There are several reasonably-priced invoicing systems that allow you to send digital invoices and get paid online. (We like to use QuickBooks. Drop us a message if you’d like help setting it up.)
5. Offer discounts and promos
The troubles in the economy affect everyone. But historically, recessions only last a year on average. So, if you can, consider offering discounts and special promotions to add value to present and potential customers.
Meeting people in their need now instils trust, turning one-time buyers into loyal customers—which will far outlast the recession. It’s a win-win, as business should always be.
These are just some of the ways you can bring more cash into your business. If you want to develop a focused approach and receive tailored business advice from a Profit First professional, feel free to contact us so we can discuss your specific situation.
In your corner,
The GuYDanS Team