We all want the “big sale.” I’m talking about the one you have to call all your manufacturer, distributors, all of your employees; you know, that order.
As a business owner, it’s one of the best feelings in the world. But something I don’t see talked about enough, is how that sale often cripples businesses. Often times beyond repair.
In this clip, I share seven creative cost-cutting tactics to implement in your business now and never lose traction on a substantial order.
Of course, It’s important that you already have your financial house in order. Be sure you’re looking at your financials and have your customer acquisition costs, costs of goods sold, etc. all lined out and understood across the board FIRST.
Then the fun stuff starts. You’ll want to get creative in reducing the amount of capital required run your business and look at what can now be dedicated to your inventory.
Inventory financing programs – also known as warehouse Lines
Factor receivables for inventory you’ve sold and apply that to the inventory you’re buying
Inventory financing direct from the manufacturer – I.E. a plan set up to pay the manufacturer a third when you place the order, a third when it lands, and a third when it sells.
Container financing programs – If you’re shipping containers from oversees, or even domestically, there are companies that will finance the container to receive it.
Private money investors
Sell leads to others who don’t compete with you (one of my favorites!) – get in front of the sale to increase revenue even before you target a customer by selling the lead to a non-competing company.
Fulfill it on a drop-ship basis – an inventory company holds the product for you and ships it directly to the customer as soon as you receive payment for the order.
Inventory consignment – these types of companies will manufacture inventory and provide it in your warehouse. They own the inventory as collateral in an agreement, but you won’t pay for the product until it ships.