Powerful (and Realistic) Ways to Add Liquidity to Your Business

Having “enough” liquidity is the Holy Grail for many businesses.

I’m often shocked as I dig into businesses that look great from the outside, only to see they’re struggling to make payroll.

Liquidity is like oxygen for a business…

But here's the kicker…

Many businesses are finding themselves cash-strapped, even when they're growing.

And it costs them in several key ways:

• Seizing Opportunities: Picture this - a golden opportunity knocks, but you can't answer because your cash is tied up. Ouch.

• Weathering Storms: Economic downturns, unexpected expenses, late-paying clients - liquidity is your umbrella in the rainstorm.

• Peace of Mind: Let's face it, sleeping better at night is priceless.

Here’s what any business should do when looking at a liquidity issue…

Take What’s Worked Before… And Do MORE Of It

Here is one immediate way a business can build up significant liquidity.

Take your best revenue-producing campaign and re-run it.

To some readers, that may sound too simplistic…

It’s a tried-and-true way to drive significant liquidity in the short term, but it tends to be completely overlooked.

You’d be surprised how many companies don’t even know what their best marketing campaign was!

But it works.

Look at Amazon…

In the 1980s, retailers started using the post-Thanksgiving holiday to run promotional sales and finally go from operating in the red to the black – hence the term “Black Friday”.

As Amazon became one of the largest retailers on the planet, they routinely banked tons of money on Black Friday.

So, when they went looking for ways to generate another boost in revenue & cash flow throughout the year, they invented a way to replicate the Black Friday experience…

Enter “Prime Day”, a short mega-sale held every July. Nothing like having a new Black Friday in July.

In 2023, Amazon sales exceeded $9.8 billion on Black Friday…

And Prime Day was a close second, with estimates exceeding $8 billion.

So, whether you're a founder yourself or you're looking at a business in an M&A situation, find a way to replicate the biggest revenue generator for a quick cash infusion.

• Look at the past 12 months and identify your largest revenue month

• Dig in deeper and look at what specifically drove revenue that month – what was unique about it?

• Determine what can be replicated and what needs to be repurposed (themes, seasonal variations, timing, pricing, messaging and scheduling)

• Make your changes and run a test

• Monitor, refine and relaunch!

Today’s Key Takeaway

In the coming weeks, we’ll continue to dive into strategies to improve online growth.

If you run a business, take a moment to assess your current liquidity situation.

Are you comfortable with your cash position? Or are you feeling the squeeze?

Remember, understanding the problem is the first step to solving it.

And in the world of business growth, liquidity isn't just about survival - it's about thriving in any economic environment.