Business operations are critically dependent on positive movement of cash. Unfortunately, you can’t always pay your bills from sales and profits. As a business owner, you need to become the master of your company’s cash flow. You also need to control costs and have a good collection system set up for your accounts receivable. Additionally, you need some solid payment schemes for accounts payable. Inventory you carry can tie you down tremendously, so it’s good to stay on top of it with inventory management software. Cash flow isn’t the simplest thing to manage, but here are some tips to help you.
Finances and Money
One of the most important resources you need for your business are financial resources. Without money you can not ensure normal operations of your small business. So, here you can find articles related to the money side of your company.
Pricing is a combination of science and art. We cannot focus on science without art or on art without science when we are pricing our products and services.
Do you think that your price is one of the most important elements in your business?
Do you know that everything that you do in your business impact on your prices while on another side, your prices impact your offers, sales and value perception of your customers?
Let’s see some of the frequently and most disastrous mistakes that you can make.
1. Lack of analytic approach in your pricing techniques
Prices are based on numbers. It’s the fact. That’s numbers comes in the form of costs, sales, market… All that numbers have or will have an impact on your prices. Because of that you’ll need to analyze such numbers and appropriate conclusions to include in your pricing strategy.
2. Too much based on “me too” strategy
Although your competition will impact on your pricing strategy, they are not the most important part in your decision-making process. Many entrepreneurs simply to avoid making their own analysis decide to copy the prices from the most important competitors. That’s “me too” strategy.
But, what if your overall offer is better than competitors? What if your costs are bigger than your competitors? What if your quality is better? What if your offer have additional values?
We cannot finance daily business operations without positive cash flow. We cannot market our company if we dont have money, and we dont have money if we dont have positive cash flow.
As an entrepreneur you must use tools such as cash flow analysis to discover where the money of your small business is spending, what you will need to improve, and how you will improve to make your comapny to be more cash stable company.
Why an entrepreneur must love cash for his company? Can his company survive on the market without positive cash flow?
Here are some of the possible answers on this question.
I am Apple’s iPhone user nearly one year, and now I am close to make a decision to buy an iPad. In the same time, my future considerations are firstly to buy a Mac and after that to transfer my operating system on all my equipment from Windows to Mac. I don’t know why, but I feel that I am starving for their products. It’s probably connected with their so successful product launch strategy for each of their products.
Long-term customer relationship just means that you work on building a relationship with your customers to create high-level loyalty for your company. That’s the best that your business can get on the road to success.
Long-term customer relationship can boost your sales, increase the number of customers and improve your overall business potential energy. So, you need to start implementing strategic decisions when it comes to building a long-term customer relationship. Here I will share my 50 recommendations related to this topic. You can use them all at once, or start implementing them one by one.
This is the first part of a series of articles that will focus on the steps to build a superior value proposition for your business, products and services or your total offer.