The seventh cause of poor cashflow - Sales levels are too low
It might sound obvious, but it isn’t to many businesses. If current sales levels don’t support the overheads and other cash demands on the business, then your overdraft will keep increasing.
This means that your business in its current state is not viable (unless you have ongoing access to new funds from yourself, investors or financiers).
There are five ways to improve your sales levels.
1. Increase customer retention.
Stop your customers from defecting to the competition.
2. Generate more leads.
Gain more enquiries from people who are not yet customers.
3. Increase your sales conversion rate.
Get more of your prospects to buy from you.
4. Increase transaction frequency.
Engage your customers to buy from you more often.
5. Increase transaction value.
Help your customers to buy more products or services from you.
There are literally hundreds of individual strategies that you can implement within these categories to increase sales. Sending you a list would be pretty silly of us and overwhelming for you. Some strategies don’t apply to your industry, and some just won’t work in your business for whatever reason.
What we have found through experiencing a wide range of client situations over the years, is that certain things do work in each type of business. There’s a pattern that we see in clients - both good and bad! How does a business grow its sales without its owners becoming overwhelmed by a mountain of change?
The best and most supportive way to grow and improve a business is to have someone looking over your shoulder from time to time, helping you build a plan and a forecast, and keeping you accountable to making the changes that will make the most important differences.
Without that support, we all end up in our business and never working on it. Talk to us about how we can provide that support.