One of the greatest challenges businesses face when selling products and services – and making a profit – is managing their cash flow so that their expenditure isn’t higher than their profit. In fact, the Sage Foundation found that 36% of female entrepreneurs who responded to its SA Women in Business research report cited cash flow problems as one of their biggest challenges when it came to running their start-up businesses.
Cash flow forecasting is one way to navigate this. It means mapping out estimates of the money coming into and going out of your business over a period of time. You then make adjustments where necessary in order to avoid insolvency in future.
When it comes to ensuring your business has a steady cash flow, establishing and maintaining your online presence is crucial.
If you’re not online, you don’t exist
Whether or not your business sells its services online, a website and social media presence is an absolute must. In 2019, it’s safe to assume that no one is thumbing through their Yellow Pages to find your business.
Customers like to compare what’s out there before making any buying decisions. To do that, they turn to the Internet. It’s also your safest bet when it comes to expanding both locally and internationally, and helps you engage with your customers in a more meaningful and personal way.
You have to be seen to make money
The easiest way to make money is to earn it while you sleep – your digital presence and e-commerce website is the best way to do this. It allows your customers to see what you offer, and then follow through with their purchase easily and quickly. By making it simple for your customers to pay for your product or service, and by accepting different payment methods (be it EFT, card, mobile wallet, cash on delivery, or even cryptocurrency), you’ll increase the cash flow coming into your business.
It might seem daunting to set up a website and online store, but it really isn’t. With options such as Sage Online Tools, it’s safe, affordable, and simple to take your business transactions online, and to increase your profit while reaching more customers.
When you also incorporate social media and SEO into your business’s digital marketing strategy, you’ll likely see a bigger boost in website traffic and sales. This is where your Sage accounting software comes in handy. To keep your operation running smoothly, you’ll need to be able to update your pricing in a heartbeat, and check your inventory levels and product data in real-time.
At the end of the day, you can’t make money if no one knows where to find you, what you offer, or how easily they can pay for your products and services. Being online means ensuring you’re never invisible, and this means constantly breathing fresh life into your cash flow.