1) Give your customers what they want
When you give your customers exactly what they want, pricing is not an issue for them. When the value is being delivered, that outweighs price, because the value is helping them produce better results than they were previously experiencing. Also, when you give customers exactly what they want, they become your biggest business advocates.
2) Include a guarantee on your invoices
A guarantee should be included to determine if the customer found the value of your product or service to be worth its cost. This gives your customer the opportunity to reply honestly, which allows you to look closely at your products and services to determine their true worth.
3) Enter into joint ventures or strategic alliances with your suppliers or customers to market each other’s products
Strategic alliances are the perfect opportunities to expose your business to new markets. It definitely makes sense to partner with those whose businesses complement your own business. Cross promotion will work very well in such cases because the products and services match up so well.
4) Engage a CPA firm that has national and international resources and represents other businesses similar to yours
A CPA who works on an international or even national level has the experience to handle all types of different financial situations. You want to work with firms that have these vast experiences so that no financial situation is too challenging for them to service.
5) Test price increases to selected markets or along product lines
Deliberately increase your prices to see how your customers react. If no changes in demand occurs, slowly increase the prices until demand levels off. Along with demand, the cash you generate declines, then set your prices back. If demand falls, but your cash generation increases, stay at the new price to keep your new profitability.
6) Sell off idle assets
Assets that are not actively being used, sitting around costing money, rather than generating money need to be sold for cash. It makes no sense to hold on to assets that have become expenses. You can use the cash made to reinvest into your business to increase its profitability.
7) Reduce inventory to the smallest amount possible while still meeting customer demands
Inventory that is sitting around for months and not being sold is costing you maintenance fees. If you are not a big chain store, only keep enough inventory on hand to meet your customer’s demands, and reorder inventory when you are nearing red-line levels of available product.
8) Get vendors to place inventory in your store on consignment
Develop the relationships with your vendors that allow you to receive product and pay them once that product is sold. This helps you keep cash on hand for emergencies, while also being able to meet customer’s demands.
9) Receive your bank statements unopened and review the checks
You will want to review your bank statements in order to determine your spending habits, and see where you can improve. If you are spending more money than you are bring in, this is a habit that quickly needs to be reversed. Little expenses that happen throughout the day quickly add up to be big expenses over time.
10) If you feel your bank loan is choking your business, ask the bank to restructure your loan
Your bank loan can be a burden that does more harm than good after it is received. If your loan repayment is eating away at your profits, ask your bank if you can get new terms that allow your business to actually make money.