Building a reliable source of cash flow can make it easier for businesses to make enough money that they can continue growing for years. IntegraPay does business with a lot of companies. Here are some of the steps for building reliable cash flow sources that we’ve seen work for other organizations.
Know Your Expenses
All businesses need to know their expenses so they can plan for the future and make informed decisions. Some tips for determining expenses include:
- Recording expenses and reviewing them at the end of each week, month and quarter.
- Remembering to include infrequent expenses that are easy to forget.
- Grouping expenses into categories so they’re easier to manage.
Bundle Products and Services
Research shows that bundling products and services can increase the amount of money that consumers spend. When companies bundle their products, they usually sell them at a slightly discounted price. The increased sales, however, should make up the difference. Don’t assume that all customers want to bundle items, though. Continue to offer products and services à la carte. Otherwise, some consumers will choose competitors that don’t force them to buy bundled packages.
Create a Back-End Product or Services
Back-end products and services enhance the usefulness of items that companies have already sold customers. For instance, a business that sells HR software might sell additional plug-ins that increase its platform’s functionality. As long as customers benefit from back-end products and services, the items can become reliable revenue sources.
Encourage Repeat Business
New customer acquisition takes a lot of time and resources. Encouraging repeat business, therefore, can produce a steady stream of income without forcing companies to stretch their resources. Useful ways to encourage repeat business include:
- Rewarding loyal customers with exclusive discounts.
- Emailing customers about new products and special prices.
- Using a customer’s buying history to suggest other products.
- Introducing subscription based services or products
Having the flexibility of payment options such as direct debit can help solidify cash flow. With set and forget options for your customers, it takes the time out of chasing invoices.
Pre-Sell Products and Services
Consumers have gotten used to purchasing products and services that haven’t been released yet. They’re especially agreeable to pre-purchasing when they get access to exclusive products or discounted prices. Amazon, for instance, gives buyers small discounts when they subscribe to products that will be delivered on a weekly or monthly basis. Kickstarter also offers an example of how well pre-selling can work. About 36 percent of Kickstarter projects reach their goals. That means a lot of people are willing to invest in products that haven’t even been manufactured yet.
Establishing reliable sources of revenue is essential to every business’s success. IntegraPay has seen the above approaches work well for many of our clients introducing recurring revenue models into their business. To find out more on how IntegraPay can help solidify your cash flow, talk to one our payment solution experts today.