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Recyclers News Press
2. Re-Engage Customers
“75 percent of your customers stop doing business with you
because you have ignored them not because they are un-
happy with your product or service. By simply reaching out
to your disengaged customer base with a compelling offer,
you should see an instant surge in sales and cash flow.” ~
3. Consolidate Vendors
“We earned considerable discounts by consolidating all of
our purchases through a single vendor and buying at higher
volume. We now look to bundle whenever possible and not
just for bread-and-butter items (we’ve even bought headsets
in bulk).” ~
4. Restructure Salaries
“If your startup is experiencing a cash flow slump, consider
restructuring salaries to be a lower base with a higher bonus
or commission payout. By making bonuses attractive at a
profitable company, you will incentivize your employees to
meet goals, focus on the company’s success and decrease
your expenses.” ~
5. Include Side Projects
“I’m not a big fan of deterring focus, but I found that we had
an easier time picking up occasional side projects for extra
cash than pitching investors. Our company is generating
revenue, so these small amounts of extra revenue made a
big difference and enabled us to get through tough periods
without layoffs.” ~
6. Ask for Up-Front Payments
“We used to require our customers to pay in full after we
completed our party rental services. Then one day, someone
suggested that since our products were so popular, we ask
for the full payment up front. We barely noticed a difference
in orders coming in and now have a steady flow of cash to
invest in new products.” ~
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Understanding your Sales
Cycle and Pricing
3
Review the time it takes to complete each selling
stage — from prospecting, setting an appointment,
qualifying the lead, making the presentation, address-
ing objections, closing the sale to asking for referrals.
Use this timeline as a benchmark to gauge where you
can shorten the lead time and close the sale a bit
quicker. Qualify a lead more quickly by refining your
lead generation tactics to group similar sales leads
that can benefit from one process change or the same
obstacle for the entire group.
Next take a look at your pricing strategy. If the price of
delivering the part doesn’t equate to the effort spent
closing the sale, your pricing model is off. Selling a
$100 part should not be exhausting. Not only does
accurate pricing make your sales process worthwhile,
it prequalifies clients who have a willingness to pay,
will actually pay and truly value your service.
Why Diversification is Important
3
The next task on your list is
Diversification
. Think
about diversification in financial terms. Diversifying
investments lowers your risk and provides better re-
turns. If you buy into the idea of a diversified portfolio,
it should be a no-brainer to diversify your business.
Why risk a cash flow crisis by depending purely on
clients walking through your door? Diversify your time
by establishing multiple revenue streams. Develop
some “packages” that your clients can benefit from.
The wholesale market is one way of targeting your
peers as another revenue stream that builds upon
your credibility as a provider of quality parts. Diversifi-
cation is essential in business because it leads to
scale. And when you scale, you lessen your risk even
further. Setting up multiple streams of income elimi-
nates your financial dependence on client work, and it
is a sign that you have just regained control of your
business.
Cash Flow Crisis or Sales Slump
Solutions to Solve the Problem
