Part 1 - Why do you need money quickly?
Every retailer has to deal with declining income at some point. These dips can happen if you haven't adequately planned for your cash flow, or they can be caused by an unexpected expense that you couldn't have predicted. Whatever the cause, you need ways to bring money into your business – and fast.
If you automatically think of a "business loan" or maxing out your credit card to solve your liquidity crunch, think again...
This course is divided into several individual lessons to show you step by step how to make money quickly and save money in your business.
In our “KairosFood Weekly” we share an individual lesson in random order.
Why need money quickly?
All businesses need revenue increases
Even with the best financial planning, there will be times in any business when an unplanned need for revenue arises.
Here are some examples you may recognize from your own experience:
Lower sales due to a bad summer, or a crisis such as the Covid period and you have to replace that income so that you can pay the bills this month.
A large purchase of new products that does not sell quickly enough
Your laptop or other device breaks down unexpectedly and you need to replace it quickly
Long-term illness of an employee that you have to replace
A marketing campaign that you want to finance yourself
If you don't have a financial buffer to cover unexpected expenses and stagnations in your business, you need ways to raise money quickly.
Your best chances for direct income lie with:
Existing and current customers
Previous customers
This makes sense because they already know, like and trust you. Your contacts from your business and social networks can also be a source of income, but leave them until later.
Be open to the suggested strategies, which sometimes come from other industries, as these may not be tactics you have tried before. Before you dismiss them as unsuitable for you, ask yourself, “How can I make this work in my business?”.
Plan what you will do with the money
All companies strive for positive cash flow. Essentially, this means less money going out than coming in. To stay in business for a long time, you need to have a positive cash flow.
Many business owners have experienced the anxiety that arises when cash flow isn't moving in the right direction. When this happens, small changes can make a big difference.
We know you need money now, but you need to get clarity:
Why you need it : This sounds obvious, but be specific about your “why.” For example, you have to hire an extra employee, but this costs a lot and you know that it will only really pay off in a few weeks/months.
What exactly you will use the money for : This depends on your circumstances, but it is important to make it clear what you will do with the money.
How much you need : Try to be as specific as possible so that you have a number to aim for and can choose the most appropriate strategy. For example, reducing operating costs may not get you the amount you need quickly enough compared to a flash sale.
When You Need It : That is, when exactly do you need the money in your bank?
How you will divide or manage it : Will you pay off one large bill first or part of several small bills?
Your need for immediate income is fine for now, but if you're constantly in need of quick cash, then you need to look at your long-term cash flow management - there's probably a problem somewhere. You must be able to anticipate your financial needs and be proactive in your financial planning.
You need to find out if there are periods when you always struggle to pay your expenses. Then take steps to schedule those periods in advance so you don't panic and have to generate income right away. For example, plan a launch or run a promotion, or use one of the strategies in this course, but plan it in advance.
Key Notes:
Adding revenue enhancers means you have to ask for sales, so that requires action.
Identify periods of the year when your cash flow is negative or lower than average and plan ahead.