For any new business, or even some of the more mature brands, one of the biggest and one of the most often seen mistakes is that the entrepreneur tends to put the goals at a place where it exceeds the cash flow of the business. While you really do need to start building your brand and working hard to make sure that you generate enough leads it is also important to make sure that you make the path for what accountants would like to call a free cash flow into your organization. If you do not have enough funds inside your business you will be out of the market in no time. So here are a few ways to make sure that there is a great cash flow into your business at any given point.
Identify What Your Expenses Are
Many people encourage discounting. This is all well and good if you know where exactly you stand in terms of profit and loss. Even if things like offers and discounts can really help you attract more customers, if your offers put you at a loss there will not be a point of you selling anything at all. Therefore it is better to not offer discounts at all if you are unclear on your financials. You also need to know about the overall cost basis which means the total amount that you had to pay for anything. You also need to be fully aware of the profit margin that you are making. Discounting can be a good startup accelerator only, if it is being done in the right manner.
Try to Bundle up Your Products and Services
Maybe discounting is not always the best idea but you can always add value in other ways. You can accomplish this very easily by bundling up your products and your services. By adopting this method, you can include so much value into your products and services.
Always Try To Have a Back-End Product If Not Service
If you know that the original offer you made to get customers to purchase from you will not bring enough revenue, make sure that you figure out ways in which you can charge higher on some back-end products and services that you offer. For example, it could be that you are in the catering business. If so maybe you can give the first hour free of charge but every hour after that will have a higher price. These are some of the easiest manners in which you could easily ensure that your business has a constant profit or an adequate supply of capital.
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