Factors Impacting Cash Flow;

1. Pay close attention to cash cycles:
   1. Debtors
   1. Creditors
   1. Inventory
   1. Fixed obligations/payments (Staff costs, Rentals, Utilities, loans)

• Price Point – as explained yesterday, as owner we need to ensure our pricing are sufficient to cover our COGS & yet still be competitive. DON’T ever go into a price war, unless you have deep pockets & due to the pricing strategy as explained in Note3 below. Like sifu @Andrew always say, sell VALUE, offer Unique Buying Reasons & aligned it with your Unique Selling Propositions (competitive edge)

• Pricing strategy: depending on your product & how you want to penentrate a market there are multiple strategy to use;
  • Premium – if you have an unique product or you provide white-glove service, then you can set a higher premium for your pricing. Your target market will need to be focused on high-end only. Focus on quality, not quantity
  • Penetrative – set a low price range to conquer market share (usually for a short duration). Usually used by big corporations to kill off competitor.
  • Cost-Leadership – Think of companies like Tesco. Need to have alternative revenue stream & has the abiity to buy bilk. Focus on quantity , not quality
  • Competitive – What your competitor have you will have it at almost same pricing. Not much of a differentiator. This is where entrepreneur need to find a differentiator. Try selling value instead of product/services. Focus on quantity , not quality