Jumpstart Cashflow with 8 Simple Steps

Premier business mentor Allison Maslan shares eight tips business owners can use to catapult cashflow, unlock scaling opportunities, and promote overall growth.

Today’s post is by Allison Maslan, author of Scale or Fail (CLICK HERE to get your copy)

What’s the first thing that pops into your head when you think about cashflow for your business? If you’re like most business owners, the thought probably makes you wince. Cashflow issues are some of the most common problems business owners face — but it doesn’t have to be this way. There are several steps that you can take to ensure that the cash is there when you need it.

Choose one or more of these steps and start creating the cashflow security your business needs to thrive. And before you do, get clear on one crucial element: You must believe that everything will come together with your business. Every business goes through ups and downs, but you won’t stay down as long as you remain focused on your big-picture vision for yourself and your company.

Now, here’s how to keep the cash flowing.

ONE:  Open a line of credit: If your first response to the idea of a credit line is to cringe, you’re not alone. What you’ll want to consider, however, is that having this cash to draw from during a slow period if need be takes off a lot of pressure. Borrow money when you don’t need it, when business is up. Then you’ll have it on hand if necessary when business is down. You can pay it back once you’re busy again. Debt is not a bad thing when you’re using it to grow.

TWO:  Tap your existing customer base: Your existing customers already trust you and know what you’re capable of providing to them. Make sure you’re tapping into these already-warm sales opportunities whenever possible. Upsell with add-on products and become your customers’ one-stop shop for everything related to your products or services.

THREE:  Use the Product Pyramid: The Product Pyramid is a multi-tiered way of approaching your customer base. Look at your existing sales and see where you’re succeeding now and where you could expand into. If you can sell to customers on every tier, you will maximize your cashflow. For example, if you manufacture run-of-the-mill coffee makers for $79, you could also produce machines at every tier for every level of connoisseur — all the way up to the garish $2,999 model.

FOUR:  Consider licensing: Licensing is an opportunity to create a consistent revenue stream from your existing products, services, or brands. It might feel scary to risk letting others represent your creations, but the truth is that this cashflow booster actually just gives you the chance to create more and grow your business. It’s worth it!

FIVE:  Establish retainers: Start thinking about how you could create recurring monthly revenue in the form of retainers rather than one-off payments for your products or services. Brainstorm what could you provide your clients on an ongoing basis that would warrant a retainer approach.

SIX:  Start franchising: If you’ve got a secure, functional business model in place, there are other businesspeople out there who want to participate and experience your success for themselves. Develop a “business-in-a-box” that people can run themselves from your basic blueprint.

SEVEN:  Offer certification programs: What skill or service can you offer as a certification program? What expertise does your business have that others can benefit from? This is an excellent way to increase cashflow as people sign up for multiple training sessions to fulfill your certification requirements.

EIGHT:  Reexamine your prices: Are you undervaluing your products and services? Too many business owners believe they need to come in at the lowest price point in order to win customers. Ironically, when you undercut your value, you communicate both lower prices and lower quality to potential customers. Deliver high quality and price your services to match. Promotional discounts and marketing incentives are fine, but your standard pricing should project a best-quality image.

While these steps may not all be easy to implement, they are simple and straightforward approaches to increasing cashflow. Start with one or two and begin to secure a base level of cashflow that can give your business room to grow. Don’t let cashflow problems keep you from the big-picture success you know your business can achieve.

Allison Maslan is the CEO and founder of Pinnacle Global Network, offering business mentorship and mastermind programs to established business owners who want to accelerate their growth, capitalize on their success, and balance it all with a meaningful life. She is also the author of two bestselling books: Blast Off!: The Surefire Success Plan to Launch Your Dreams into Reality (CLICK HERE to get your copy) and her newest book Scale or Fail: How to Build Your Dream Team, Explode Your Growth, and Let Your Business Soar (CLICK HERE to get your copy).  Learn more at www.AllisonMaslan.com.

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