Track Where Your Business is Coming from and Find Creative Ways to Increase it.
It is important to know where the revenue of the business is coming from. When this statement is made, most people automatically think of advertising and tracking the results. While this method of generating sales is important in some businesses, most businesses have other, more cost effective, ways that business is generated. Two of the most common are word of mouth from existing customers and referrals from other businesses. By taking the time to develop some creative ways to increase the business generated from different sources, the resulting increases in revenue, and therefore profitability and cash flow, will usually be surprising.
Some examples include: A) what is the cost versus increase in revenue of having an employee at the door to greet the customers and provide them with a shopping cart or basket? Do people buy more if they can carry more? The answer is usually yes. B) What is the hot button for the referral sources? Do they have kids and a trip to an ice show, or a baseball game, or the zoo would be a value added outing for them and their family? Are they traveling a lot so an unstructured day at the park for a big picnic would be of more value to them? Ask some questions and really pay attention to the answers. Business is based on relationships and the more creative the bigger the rewards.
More information on this topic
Managing Cash Flow