Major changes are happening in the way businesses operate. Here are our business cash flow management predictions for 2013 and throughout the rest of the decade.
Cash Flow Management Prediction 1 – Business Operations Will Be Streamlined For More Efficiency. With the constant technological advance of computers, cell phones and the Internet, faster communications at lower costs will become even more important to increase efficiency and production with less chance of error. This will show up in more electronic communications systems being used to keep productivity at a high level and the cash flow budget tightened up.
Cash Flow Management Prediction 2 – There Will Be More Complex Computer Data Security Issues. Enhanced computer security issues will become the most important to protect a company’s information. Backing up data files in a remote location that double encrypts the information will give the business owner more peace of mind than having only a tape backup or an external hard drive which can be damaged or vulnerable to attack. Stronger firewalls will be utilized to keep hackers at bay.
Cash Flow Management Prediction 3 – Automated Email and Text Follow-Up Selling Systems Will Become More Popular. With the advent of so much more information available on the internet to business owners and consumers, they are making buying decisions themselves without the aid of a salesperson or receiving something in the regular mail. Therefore, a cash flow plan will include customer follow-up done on an automated basis using Email or texts to cell phones will more efficiently prompt the customer to buy products. Building an email list and cell phone list and using an automated response service (called a follow up autoresponder) to keep in touch with prospects and customers will save businesses time and money.
Cash Flow Management Prediction 4 – The Availability of Business Credit Will Remain Very Tight. Despite the government’s insistence that the banking and credit industries loosen lending to businesses so that they can survive, expand, and create jobs, credit will remain very tight. Both the banking and finance industries are working to clean up past mistakes so that the world monetary systems can operate once again, but right now they are hoarding money and will remain reluctant to lend. As a result, both consumers and businesses will need to learn to operate using less credit and a cash flow projection will include cutting expenses to operate on cash. Companies are tired of having debt and the cash flow calculator will be working hard to figure out how to become debt free.
Yes, we offer cash flow management software, training products and coaching help to reduce debt and increase profits.
Cash Flow Management Prediction 5 – Businesses Will Diversify To Survive and Expand. With the current state of the economy, businesses will diversify more than ever by providing new product and service lines in order to survive and expand. Old business models will not be totally abandoned, but will be revamped to include new offerings, faster delivery and abundant value for the price to keep cash flow statements in the black. Fickle shoppers will go elsewhere for a better perceived value for the dollars they spend. Emerging niches that cater to new technologies will expand quickly.
Cash Flow Management Prediction 6 – This Will Be Known As The Decade of Internet Advertising. Internet advertising will be the most popular marketing tool in the coming decade as people have less time and patience to read lengthy pages of information that arrives in the mailbox.
Video advertising will continue to grow in popularity. Consumers like being able to watch a short video to decide if they want more information. Social media marketing will grow in popularity as peer referrals for products become more important to consumers before they make buying decisions.
Internet reviews of companies and individual products will carry increasing weight with consumers. Traditional mail and print marketing will continue to be used for a secondary follow up mechanism to the prospect and/or customer, especially for those ‘brick and mortar’ retail businesses who rely on physical customer traffic for sales.
We recommend you get an analysis of the strength of your internet marketing presence and free tips on how to attract more new customers at Customer Finder Marketing.
Cash Flow Management Prediction 7 – Paper Phone Book Advertising Will Become More Obsolete. Consumers already favor getting information online by using their computers, mobile phones or other Internet-based applications for this purpose. The cash flow budget of most businesses will be reduced for printed yellow page ads and increased for boosting their internet presence.
Cash Flow Management Prediction 8 – Business Mobile Phone Apps and Mobile ready Websites Will Be Used More by Consumers On-The-Go. There are already tens of thousands of businesses with applications available for mobile phones so consumers can do shopping, banking, stock trades, pay bills, order groceries, make restaurant reservations, schedule vacation packages, run searches for what they want to buy.
More video advertising will be available through phone applications. Cash flow plans likely include less “brick and mortar” type business locations opened because of the expenses of running such businesses. Instead business will offer more over the internet, and are likely to “farm out” more projects to outside resources to increase efficiency, cut costs, and increase profitability.
Cash Flow Management Prediction 9 – Businesses Will Hire More Independent Contractors and use outside resources instead of traditional employees so that business owners can reduce their payroll tax and benefit costs and acquire more talented people in remote locations to work for them for quantified periods of time. Those more qualified and talented people will desire a flexible work schedule. Unemployment will continue to be a huge issue and more individuals will start their own businesses. Cash flow plans will include more outsourcing through other businesses instead of internal job creation.
Cash Flow Management Prediction 10 – Business Owners Will Remain Uncertain About The Economy. Business owners are worried about making payroll, about the new requirements of the health care regulations, about not being able to get a loan, about rising costs of doing business, about demand for their products weakening, and underneath all that is a fear of higher taxes to come. Cash flow budgets will likely include less business travel, and more video and teleconferencing will be used instead to conduct meetings. This will have a negative cash flow effect on the airline, hotel, and rental car industries.
More businesses will move toward commission based pay instead of the standard hourly wages for employees, and toward shorter work hours in the office and more utilization of part-time staff to avoid overtime pay. Better worker performance will be required, assisted with computer programs to track results and make corrections quickly and efficiently.
Business will continue morphing into fast, streamlined operations that are ready to initiate changes quickly in order to remain competitive and keep the cash flow rolling in. It will be interesting to be a part of this evolution as we run our own business and help other business owners to win at their cash flow management game.
Here’s to your business cash flow management success this year and beyond!