How to improve cashflow without selling any more products

So here is the deal, if I turn you onto one of the greatest secrets for small to medium size business than you need to promise to mention this blog to everyone you meet. I know that by the end of this article 3 things will have happened. 1. Your financial intelligence will improve, 2. You will not be able to sleep. 3. You have what it takes to grow from $20,000 per year to $1,000,000 per year in revenue. I know you want to know the secret already right?
There are a number of things small businesses can do to improve cashflow without selling any more products. Sales are a big part of the overall revenue; however they are not the only thing that contributes to the cash flow of your company.

First thing you can do is charge a fee for your service to your product or service. Sounds simple, however many people underestimate the use of a fee. I’m talking about adding a fee to your product or service. For instance if you sell body supplements you may charge a shipping and handling fee, or a fee for designing a personalized dietary plan, or a subscription to a news letter for special reports on how to lose weight and tone muscle. The trick to charging a fee is to make sure you disclose the fee up front and do not hide it from the customer and spring it on them at the purchase.

Second, offering terms is a thing of the past. This is not the 1920’s anymore, and quite frankly startup’s can’t afford it, cash poor mid size companies can’t afford it and even large companies can’t afford it, so just don’t. If you are in an industry where it is customary to offer terms you can do only 3 things 1. Offer terms and go broke. 2. Simply state, “it our companies policy to only except COD terms.” Or 3. Use a factor, a factor is like outsourcing your back end office at a fraction of the price (you can read more on factors visit http://www.inbeefinancial.com/financing-ar.html )

Third, negotiate, negotiate, negotiate. Right, but I’m not Donald Trump and I don’t intimidate anyone how can I negotiate anything? Well I have good news for you negotiating is easy when you understand finance. Finance in its simplest form is broken down into two things, time and money. STORY TIME…. A couple of years ago I was on a team of entrepreneurs building a nut, dried fruit, and candy company. There was an account I was trying to break open and have them order from us. The grocery store was in Illinois and had about 15 locations to be exact. Once I discovered the account and set the appointment I knew the account meant big growth for our company. However, little did I know how astute the purchaser was when he placed his ordered, oh he ordered 15 displays to be exact that meant $135,000 for my company per year…. Or did it he offered to pay his bill net 10 with a 5% discount. So, we only made $128,250.00 He Improved his cash flow by $6,750.00 per year. Over the three year relationship he saved $20,250, if you multiply that by all his vendors that’s a huge influx of cash.
For more information on improving your cash flow call iNBEE Financial