During the pandemic, we observed many companies that were having a very difficult time. As a consultant, it was painful for me to witness their decline in the business they had worked so hard to build.
When receiving requests for help with cash flow problems, the first area we look at is their list of buyers. This is a list of customers who have opened their wallets to the business in the past. Meaning they trust the business.
The importance of this list cannot be over-emphasized! Here is what we found when working with new clients during the pandemic:
The companies who had a list of buyers could generate cash flow "on-demand" by sending on an offer to their list.
The companies without this list were struggling with cash flow.
It was eight times more expensive to get sales and new customers than to sell to existing customers.
Need cash flow? Make an offer and send an email to your list. The sales will come in. Many of our clients followed our advice on this and had few cash flow problems during the pandemic.
Those who had no list were struggling to keep their doors open. Most couldn't afford the expense of new customer acquisition with no cash flow coming in. As a result, many closed their doors.
The money is in the list. It always has been, and always will be. Start a list-building strategy as soon as you start your business. It could be the difference in the success or failure of your business.
Your list IS your business! It's where almost ALL your sales come from. It's the most valuable asset you own.
If you need help with this, please contact me for a free bounce-back strategy consult. I love helping small businesses!