Ask Bartercard explain that understanding the trends that impact your business while having an effective cash flow forecast, can help keep you on the right track, and you’ll be better equipped to deal with a sudden downturn or an unexpected hit to your cash flow. As the saying goes ‘cash is king,’ so how can you preserve the cash in your business and keep it flowing in the right direction – into your bank account?
First of all you need to make it easy for payments to come in, ensuring the payment process for your customers is simple, streamlined and fast. Of course most businesses today accept credit card, using payWave if you have business premises. Online payments and the use of payment apps are also a great option for customers and are easy for you to track.
Secondly, provide your customers with payment packages so you can predict your income with greater accuracy. Knowing when money is scheduled to come into your business gives you the ability to plan your own spending while focusing on marketing for those slump periods. You also need to be clearer with your payment terms, displaying them on your website and/or instore.
You should also always be looking for ways to save on expenses and if you regularly review your outgoings and compare options, you may find you can save thousands, even tens of thousands of dollars a year. Every dollar you save can be invested back into growing your business, or improving your lifestyle.
Bartercard provides a great opportunity for you to conserve your cash so you spend less and keep more of it in your business. Bartercard is an alternative payment option that enables you to buy and sell your products or services with other Bartercard members. Instead of paying in cash, Bartercard members use an electronic currency called a Trade Dollar. These Trade Dollars can then be used to offset cash expenses within your business.
To supply a Bartercard member with your product or service, the only cost to you is the replacement or variable cost. Everything else is your profit. So in effect, when you make a purchase using Trade Dollars, you are getting a concession equal to your Gross Margin Profit (GMP.)
Bartercard customers are also more motivated to spend their Trade Dollars with you as they’re also paying with their GMP, so they’re conserving cash as well. The beauty is, your new Bartercard customers who pay with their Trade Dollars will not interfere with your existing business, but simply add to it! As a bonus, if these new Bartercard customers like what you do, they’ll refer their friends and colleagues to you – most of them being cash customers.
To find out how Bartercard can help keep more cash in your business by utilising Trade Dollars, and for more information on how to get more customers, selling excess stock and where can I spend my Bartercard dollars please go to http://askbartercard.co.nz .