Many businesses, big and small, are in the grip of a detailed review of their revenue lines, business costs and cash flow processes.
Below are a few ideas that I’ve picked up from customers, colleagues and businesses I’ve worked with over the years:
Revenue
1. Do you have a good contact management system and a cycle of regular contact established with your prospects, suppliers and existing customers? The maintenance of a regular dialogue can be enough to finalise a sale.
2. Keep an eye on your competition. Make sure you’re one step ahead on product, customer service, pricing and added value.
3. Focus on the lines that you have that are most profitable – don’t waste time on those that cost you almost as much as you make
4. Do you, if relevant, have an efficient ecommerce website? What more can you do to shorten the basket to check out process and
5. How quickly do you respond to enquiries? The quicker you respond, the quicker you can create your sales pipeline
6. Do you know what your existing customers really value? If they give you testimonials then you can use these when prospecting. Better still will your existing customers use their own social networks to promote your products and services? Word of mouth is still the strongest form of marketing.
Cash flow
1. Have you considered making as much of your contact with your customers, suppliers, and prospects electronic – thereby cutting down your post, paper and print bills?
2. Do you always say yes to customers who want credit or suppliers who want extended terms? Don’t worry about saying No
3. You may want to negotiate payment of a percentage of any invoice in advance of delivery.
4. Is your supply network efficient? The quicker you can turn around orders the quicker you can send out your invoices and if something in the chain is slowing your down then it’s your cash flow and your reputation with your customers that will suffer.
5. Consider offering discounts for prompt payments or even early payments.
6. Have you reviewed all of your costs – where do you spend most money? Can you negotiate better terms from your suppliers, do you order just in time or do you sit on stock for too long? As point 1 – what can you do to cut down on big costs like postage, print and paper all of which are prone to price increases on a fairly regular basis.
7. Do you know which of your invoices are accepted, pending or queried? Consider software, like secure-send ,which keeps an audit trail on every document sent via secure email which you can view before credit chasing.
