Your business needs a reliable cash flow before you can make solid future plans. It’s difficult to have a strategy that spans months and years if you’re never quite sure how much is coming in and going out. Here are three methods that help you create a cash flow that’s predictable and steadily growing.
Build a Streamlined Process for Accounts Receivable
If you have an inefficient accounts receivable process, it takes a lot longer to determine how much money your business has available. A streamlined process improves productivity and gives you a clearer picture of your cash flow.
Package Your Services Like Products
Quoting your services on an ad hoc basis leads to several problems. You can’t predict the exact deal sizes and your sales forecasts end up being inaccurate more often than not. The scope of a project can rapidly spiral out of control, taking up valuable resources that you needed for other customers. Your company’s workload changes quickly, which can lead to customer experience issues and staffing problems.
You can avoid these issues by packaging your services like products. The product is defined by a pre-established and limited scope. You know exactly how many resources are required for the service and your company’s capacity for them. Your sales team spends less time figuring out exactly what the client is looking for and putting together proposals. They get to focus on a set list of features and benefits, which helps the sales team to guide potential customers to the proper product for their needs. The buyer journey is a lot smoother as a result.
Automate Your Selling
The next step after creating products out of your services is to automate significant parts of the sales process. The early stages of the sales funnel are the most likely to benefit from automation. For example, you can put a lead nurturing campaign in place that delivers educational content to a prospect in response to their initial inquiry. Follow-ups and sales presentation scheduling can also be handled automatically.
To build reliable cash flow empowers your company to make strategic decisions and plan for the future. Whether you implement one of these ideas or all three, you put your organization on solid financial ground.