03 Jul The seventh cause of poor cashflow – Sales levels are too low
It might sound obvious, but it isn’t to many. If current sales levels don’t support overheads and other cash demands of the business, then you will simply run out of cash.
This means that your business in its current state is not viable (unless you have a never ending pot of money (unlikely for most).
There are five categories of ways to improve your sales levels:
1. Increase customer retention.
Stop your customers from going to the competition.
2. Generate more leads.
Gain more enquiries from people who are not yet customers.
3. Increase your sales conversion rate.
Get more of your prospects to buy from you.
4. Increase transaction frequency.
Engage your customers to buy from you more often.
5. Increase transaction value.
Help your customers to buy more products or services from you.
There are many strategies that you can implement within the above categories to increase sales. Some strategies don’t apply to your industry and some just won’t work in your business for whatever reason.
What we have experienced with our clients, is that certain things do work in each broad type of business. There’s a pattern that we see in clients – both good and bad!
How does a business grow its sales levels without its owners becoming overwhelmed by a mountain of change?
The best and most supportive way to grow and improve a business is to have someone looking over your shoulder from time to time, helping you build a plan and a forecast, and keeping you accountable to making the changes that will make the most important differences, and it’s not your spouse because that’s a soft approach.
Without that support, we all end up in our business, and never working on it. Talk to us about how we can provide that support.
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