I’m sure you have heard the saying “money is the soul of business.” No matter how you look at it, this sentence is as true as the gospel. One of the biggest challenges of small businesses is getting free cash flow. What does this mean? It means the amount of money flowing into your business over your expenses.
For retail stores like thrift stores and dollar stores, it is quite vital to get the cash flow as early as possible. This is because these stores are usually run on a low budget, so they rely very much on the money flowing through the business. Data gotten from CB Insights indicates that at 29 percent, the cash crisis is one of the leading reasons for startups failing.
Many business owners are quite willing but some don’t know how to go about it. Fortunately, Retail Guidance is available to help you organize your business and set up a cash flow system for you.
How to keep cash flowing in your business
Considering thrift stores and dollar stores, here are some ways that you can keep the cash flowing. Now
It is vital that you set reachable and reasonable cash flow targets for your retail store. This would serve as a sort of guide for you. Ensure that your targets are easily updatable, so you can make changes as you move along.
The biggest issue here is setting reasonable targets, and how to go about setting targets. At Retail Guidance, we have a team of experts that can help you set your targets.
Keep track of your expenses
This is straightforward really. Selling at a loss, it is impossible for you to get any form of cash flow. Dollar stores and thrift stores sell at very low prices, so their interest isn’t as impressive as bigger retail stores. It is therefore crucial that you take a close look at your expenses, so you can figure out how much spending you can afford to do. of your expenses
Encourage repeat customers
Honestly, for any thrift or dollar store, repeat customers are your holy grail for cash flow. This is quite evident in the statistic that states that you get about 67 percent more sales from your existing customers than new ones.
it is important that you deal with your customers with patience, and give them a good experience.
Easy mode of payment
It is essential for you to adopt a means of payment that is pretty easy and straightforward. No one wants to go through numerous steps just to pay for a piece of item. This is particularly important for low budget stores like dollar and thrift stores.
Many thrift and dollar stores have profit margin forecasts but don’t have any sort of cash flow plan. This is actually a rookie move and it’s a mistake. If your cash flow is solid, then the profit is going to grow.
There are many more ways to ensure you beat cash flow in retail, but we can’t put everything in this article. If you need help setting up a plan or you want more information on setting up a cash flow plan for your retail business, then you can contact us at Retail Guidance.