Many of us dream to open our own business. Some of us dare to turn this dream into reality. When you begin a business, it’s not that tough. The problems begin within the first two years. These problems exist because everything right from issues faced by employees, issues in supply and demand and profit/loss are solely your problems. You cannot avoid any task or issue as anything can go wrong.
Few businesses do not survive such problems and hence shut down within the initial phases (i.e. less than 2 years). The ones that survive understood the market, adapted along with each trend and know how to be creative in order to survive with such competition. A business person must understand that apart from surviving in the competitive market and increasing revenue, he/she must also focus on increasing their cash reserves. When you have more cash reserves, it can daily payments and allow you to be ready for any issue! Hence to make it easier, we have listed few ways you can improve your cash reserves in business.
Allow multiple payment options:
There’s no way you can survive in today’s market hoping everyone will carry cash with them. With the evolution of plastic money (debit and credit card) everyone carries cash only for emergencies. Apart from this there are mobile wallets like PayTM, PhonePe, Freecharge, MobiKwik and many more where all you need to keep is a scan code and the customer can do the payment instantly. Finally, a new payment option is the UPI (Unified Payments Interface) which is the fastest mode of payment. You can use apps like BHIM and Google Pay (previously called as Tez) to link your bank accounts and instantly pay anyone.
By giving freedom to the customer in terms of payment methods, you increase sales and can save customers from exiting the shop.
Pricing and Discount Strategy:
While running a business, you can improve your profits just by balancing the pricing and discount strategy. If you over-price your products, you can not only lose on prices, but also very good customers. This is not good if you want to survive long in the business without loyal customers. If you take care of these loyal customers they will keep coming back to you and also endorse your name to others.
When you offer discounts to clients that keep buying from you, they become your loyal and regular customers. Such discounts might hurt a part of your profit margins but will help you earn every month from one client. Offering discounts will ensure that the flow of customers can increase more and this can help you clear your old stock.
It is important to keep an effective system for invoicing. Using traditional methods might not be effective as records are not maintained well and this also affects taxation. Hence it’s best to keep an automated system. This system will ensure all records are maintained and also you can effectively find out how much tax you need to pay. Entirely, this will help you understand your best months of business and the ones where you can improve.
Running a business is not a onetime thing. You need to keep learning, evolving and continuously improve your cash reserves. In case you have depletion in your cash reserves, you don’t have to panic. All you need to do is come to Ruloans and apply for a business loan. We will help you borrow right and help your business grow! Click Here to know more about quick business loans.