by Melanie Benson Strick
One of the biggest challenges every entrepreneur faces is increasing cash flow. There are ten proven strategies I use in my Rapid Cash Strategies tool. But these three techniques are my favorites (and easiest) ways to generate more revenue each month.
1. Sell More to Current Clients
Selling more is obvious. But what most people don’t realize is that selling more to current and past clients is a far easier way to increase cash flow. Someone who has already invested in your offerings is 90% more likely to buy again than someone new. Think about what other challenges you can solve for them or solutions they don’t yet have and create a campaign tailored towards current clients.
2. Raise Your Prices
One of the biggest mistakes many entrepreneurs make when they feel a cash flow crunch coming on is to arbitrarily slash all their prices in order to increase cash flow. Not only does this reduce your revenues significantly; its sets you up for MORE work for less money. Not always the best move and it actually backfires.
Raising prices can attract better, more qualified clients. You need less sales to make your income goals and often you’ll work less to deliver your offerings. Raising your works best when you’ve got the right model and positioning for the market you are approaching.
My Awaken Leadership client Joanny was experience low cash flow until we raised her rates and re-positioned her as an industry authority. She found it a lot easier to enroll her ideal clients at a four-figure rate than her previous $100/hour rates.
3. Use Creative Business Financing
I didn’t know how to do this until I was probably in my eighth year of doing business. When you offer creative business financing, a business owner offers a discount for paying in full up front for a package spanning several months.
I call this front-loading your revenues and it can quickly generate a boost of cash into your small business. Another variation on this is to get a significant deposit then finance the remaining amount due through monthly payments.
Either way this approach helps your clients experience greater buy-in to your process while you improve your cash flow (and eliminate payment chasing!)
Use all three techniques and you’ll be able to not just improve your monthly cash flow but also create a nice financial reserve as a cushion for growth investments.
Melanie Benson is known as America’s Leading Small Business Optimizer because she knows how to boost profits and results with her secret weapon — LEVERAGE. With over 12 years in corporate project management, Melanie works exclusively with thought leaders and visionary entrepreneurs who want proven strategies to monetize their big ideas and catapult their success without giving up their life.
Melanie is host of the Amplify Your Success Podcast, author of Rewired for Wealth, serves on the Executive Leadership Team for Women Speakers Association, is co-author of Entrepreneur.com’s Start Up Guide to Starting an Information Marketing Business and has her success tips featured in magazines such as Bloomberg BusinessWeek, Parenting Magazine, Woman’s Day and American Express FORUM. Melanie is a proud lifestyle enthusiast and spends her free time in search of the best spas and beaches in the world.