This training tells us more about cashflow, how to create sustainable cashflow for your business. Ways in which to increase the revenue of your business
5. For a startup to survive
and succeed, it needs to
manage cash flow with
utmost care and skill.
WRITE DOWN BUSINESS IDE
6. BUILD A HIGHLY PRODUCTIVE TEAM
A lot of startups make the mistake of hiring a
less experienced workforce in an effort to save
money. But, it doesn’t work that way. Their skill
level may force you to spend more resources
and time on onboarding and training than you
can afford.
7. BE STRICT ABOUT RECEIVABLES
Most startups are on cash-basis accounting
which means getting your customers to pay up
front or almost immediately will make it easier
to manage your expenses and overheads (more
on the cash method of accounting here).
8. PAYMENT METHODS
Try multiple payments options if your product
and industry allow. Analyzing your customer
feedback is a great way to find out how happy
they are with the available payment options and
how you could improve.
9. KEEP A WATCHFUL EYE ON
EXPENSES
You need to be careful when it comes to
handling expenses, especially if sales are
low. Inaccurate estimations or
expenditures can quickly lead to a sudden
cash shortage.
10. MAINTAIN SOME CASH RESERVES
Cash reserves are critical to ensuring
sustainability—it helps your startup stay upright
and get through unforeseen emergencies. Negative
cash flow can make it difficult for you to pay
employee salaries, bills for utility services, and
interest as well as cover other bank charges.
Prepare for rainy days
11. COMMUNICATE THE GOALS TO
EVERYONE
It’s important to ensure every member of your team has a
clear idea about the company’s financial goals. Use
budgets, quarterly plans, annual plans, and three-to-five-
year plans to communicate this company-wide. It will help
your teammates make decisions that are in alignment with
the company’s overall goals and objectives
Maintain a tight focus
12. MAKE BETTER USE OF ALL YOUR
ASSETS
Many companies find it difficult to shed their idle assets,
but the more you hold onto your materials or equipment,
the more expensive it gets. Think about all the costs you're
forced to pay such as rent, service and maintenance
charges all without actually generating any income. On top
of all that, you have to consider depreciation as well.
14. A revenue model is a framework for
generating revenues.
It identifies which revenue source to
pursue, what value to offer, how to price
the value, and who pays for the value.
15. COME UP WITH A
COMPREHENSIVE LIST REVENUE MODEL
LIST OUT
Present your idea
16. TYPES OF REVENUE MODELS
1. Ad-Based Revenue Model: creating ads for a specific
website,
2. Affiliate Revenue Model Also Network Marketing
downsize: which works by promoting links to relevant
products and collecting commission on the sales of those
products,
3. Transactional Revenue Model
This method is one of the most direct ways of generating
17. 4. Subscription Revenue Model
5. Web Sales
customer pays directly for a product or service, except that
customers must first come to your company via a web search
6. Direct Sales
There are two types of direct sales: inside sales, in which someone
calls in to place an order or sales agents calling prospects;
7. Channel Sales (or Indirect Sales)
The channel sales model consists of agents or resellers selling your
product for you and either you or the reseller delivering the
18. 8. Retail Sales
Retail sales entails setting up a traditional department
store or retail store in which you offer physical goods
to your customers.
9. Product is Free, But Services Aren’t
This model is unique compared to others, in that you
have to give your product away for free
10. Freemium Model
The freemium model is one in which a company’s
basic services are free, yet users must pay for
additional premium features, extensions,
22. Most businesses fail not because they don’t
make a profit but because they run out of
cash.
If you Operate in a highly uncertain
environment you want Multiple revenue
streams
So if you neglect social media then ashia, if
you neglect real world then ashia
23.
24. REVENUE STREAMS
#1: Create additional new products and services
#2: Start selling online and globalize your company
#3: Offer training courses for your products and
services as an additional revenue stream
#4: Start increasing your customer’s base
#5: Ask your customers what would they like
25.
26. INCREASE CASH FLOW
Pricing Strategy
Raise or Lower Prices
Bundle Products
Add, Reduce, or Eliminate
Shipping and Handling Charges
Offer Special Discounts
Offer a Rebate buy one take on
free
Coupon Programs
Community coupons
Discount for customer you
refer
Re-energize the Sales Channel
Focus on customer
relationships
Become a recognized thought
leader/expert
Develop a new client/customer
base
Develop strategic partnerships.
27. WHAT IS YOUR FOCUS AS A
STARTUP OR ENTREPRENEUR
Taking care of clients and making more money
Change Operating Procedures : You need to generate
more sales while reducing expenses.
Make Everyone a Salesperson: From telephone to email
to face-to-face meetings, every employee has the
opportunity to spread your company's message and
engage in potential sales-generating behavior.
Everyone needs to pitch in to help: cutting costs,
28. CASH FLOW MODELLING
Cash is king. Most businesses fail not because they don’t make a
profit but because they run out of cash.
Cash is the lifeblood of any business.
Cash flow modelling is the practice of planning and forecasting
the sources and uses of cash.
Its objective is to provide a framework that enables the most
effective, efficient and economic use of available cash and the
maximisation of free cash flow (the cash generated by operating
cash flow less capital expenditure