12 Cashflow Strategies For Your Online Business

12 Cash flow Strategies For Your Online Business

12 Cashflow Strategies For Your Online Business

In order to be successful in online business, you need to have a firm understanding of cash flow management and cashflow strategies.

These 12 cashflow strategies will help you keep your business on track and ensure that you always have the funds you need to operate. Implementing even a few of these strategies can make a big difference in your bottom line. So, what are you waiting for?

Start putting these tips into action today!

Strategy 1 – Extending credit

If you are experiencing cash flow problems, one option you may want to consider is asking your suppliers for extended credit terms. This means you would have more time to pay your invoices, which can help ease your cash flow constraints. Of course, you will need to be proactive in managing your cash flow going forward to ensure that you can make all of your payments on time. But if you are facing a temporary cash crunch, getting extended credit terms from your suppliers may be a viable option.

Strategy 2 – Getting paid faster

Late payments can quickly lead to cash flow problems, and it can be difficult to keep up with the bills if customers are taking their time to pay.

There are a few things you can do to help encourage customers to pay more quickly, such as setting up a direct debit/standing order.

In addition, it's important to keep on top of invoicing so that customers don't fall behind. By taking a proactive approach to cashflow management, you can help ensure that your business stays afloat even when payments are delayed.

If you are in the UK I recommend you look at GoCardless as an easy way to set up being able to take direct debit payments.

Strategy 3 – Fast payment discounting

One way to ease cash flow problems is to offer fast payment discounts. This means that customers who pay their invoices within a certain time frame (usually 7-10 days) will receive a discount on the total amount due. For example, a customer who pays an invoice within 7 days may receive a 2% discount. This cashflow strategy can help to encourage customers to pay their invoices more quickly, easing the strain on your business.

Strategy 4 - Resell or upsell to old or client customers/clients

One of the best ways to generate cashflow is to resell or upsell to old or current customers. By offering them new products or services that complement what they've already purchased, you can increase your revenue without having to acquire new customers. What's more, because these customers are already familiar with your brand, they're more likely to make a purchase than someone who is hearing about your business for the first time. So if you're looking for a way to improve your cashflow, focus on selling more to your existing customers. They'll be happy to buy from you again, and you'll be happy to boost your bottom line.

Strategy 5 - Ask for referrals

To ask for referrals can be a cashflow strategy to bring in more revenue and help with cashflow. When you ask for referrals, you are essentially asking customers or clients who are happy with your products or services to refer others to your business. This can be done through word-of-mouth or by providing referral cards or coupons. Referrals can help you generate new business, which can in turn help improve your cashflow situation. Asking for referrals is a great way to get the word out about your business and attract new customers.

Strategy 6 - Raise your prices

If you're finding that your cash flow is tight, one strategy you may want to consider is raising your prices. This can be a tough decision to make, but it can be an effective way to generate additional revenue. Of course, you'll want to be strategic about how you do this. First, take a look at your competitors and see what they're charging for similar products or services. Then, decide how much of a price increase you need to make in order to make up for the cash flow shortfall. Finally, communicate the price increase to your customers in a way that doesn't shock or anger them. For example, you could frame it as a limited-time offer or promote it as a new and improved version of your product. If done correctly, raising your prices can be an effective cash flow strategy.

Strategy 7 - Announce a few coaching or client spots at a discount

One way to help ease cash flow concerns is to offer discounts on coaching or consulting services. By filling a few spots at a reduced rate, you can generate needed revenue while also providing a valuable service to clients. This cash flow strategy can be especially helpful during slower periods or when you are first starting out. So if you're looking for ways to boost your cash flow, consider offering discounts on coaching or consulting services.

Strategy 8 - Consider subscription models 

A subscription model can be an effective way to keep cash flowing in on a regular basis. With a subscription model, customers pay a set price each month or year for access to the company's products or services. This recurring revenue stream can help to smooth out cash flow fluctuations and provide a more predictable income stream. Additionally, subscription models can help to build customer loyalty by encouraging customers to commit to using the company's products or services over the long term. As a result, businesses should carefully consider whether a subscription model would be a good fit for their business.

Strategy 9 - Offer a VIP option for your service

VIP customers can enjoy exclusive benefits such as priority service, early access to new products or services, and special discounts. By offering a VIP option, you can not only improve cashflow but also build loyalty among your best customers. And that's good for business.

Strategy 10 - Cutting unnecessary expenses

When cash flow is low, it can be difficult to meet financial obligations and keep the business afloat. One way to improve cash flow is to cut unnecessary expenses. This may involve scrutinising the budget and eliminating or reducing spending on non-essential items. For example, a company might reduce advertising spend during a slow period or renegotiate contracts with vendors to get better rates. By cutting unnecessary expenses, businesses can free up cash flow and improve their financial health.

Strategy 11 - Launch a program which you will deliver Live

The goal of a Live program is to help increase revenue and improve cashflow prior to having to deliver or map out a huge program. You can deliver through live teaching and video content, and tailor to what your buyers ask for. People also get to spend that Live time with you which helps increase their likelihood of moving onto other purchases with you. 

Strategy 12 - Spending v Return on Investment

Any business needs to ensure that its spending delivers a return on investment. That means that spending needs to deliver you a positive return in terms of money of (in some cases) time. 

By utilising even a few of the strategies mentioned in this article, you can start to see an increase in cashflow for your online business. Consistently monitoring and improving your cashflow is essential for long-term success.

Which of these 12 strategies will you implement first?

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About the Author

Annette Ferguson 

Owner of Annette & Co. - Chartered Accountants & Certified Profit First Professionals. Helping online service-based entrepreneurs find clarity in their numbers, increase wealth and have more money in their pockets.