The biggest challenge most small businesses face is cash flow. Getting enough money in on a regular basis to pay the business bills and to pay yourself can be a daunting task. The answer might seem to be work harder or more,
Getting more money out of your existing business can be the exact answer to preventing any cash flow problems, and to growing your business without putting in any more of your time. Finding new ways to make money out of existing business is often easier than you might think.
Earn More In Less Time
Depending on what type of business you have, there are different ways to produce new revenue streams.
If you have an office space, you might be able to rent it out as a venue space, or to rent out part of it as a work space to another small business owner.
Thinking beyond that, you might also be able to increase revenue by adding in smaller ways to capture money in your space. Restaurants that are closed during the day could consider opening for coffee only in the morning, to capture the morning clientele they previously lost.
If you’re a service provider, think through how you can
Capture More Money With The Same Amount of Work
Money can often slip through businesses fingers simply due to a lack of systems, or overlooking some details.
For example, you can add in fees to client invoices. A late payment fee of 7% is standard, and can mean if someone pays late you end with more money than you originally billed for. You can also implement a rush fee or a processing fee.
Small businesses are also responsible for giving themselves a raise. As inflation and cost of living rise, it’s important to consider raising prices on existing products. Raising prices means bringing in more money without having to produce new services or items.
Small price increases, properly explained to audiences, can go smoothly, and can help increase cash flow and profit margins. Dropping a surprise price increase, especially if it’s large, can isolate audiences. Small businesses often benefit from the fact that customers know the people behind the brand, so feel free to share your story with your customers so that they feel excited to support your new direction.
Creating more money from what your business already has in place should be an exercise in creativity and simplicity. Don’t try and overextend yourself- look at what you’ve already got and ask yourself what makes sense to add in to the mix. Doing this can mean more money month to month and your overall cash flow.