TL;DR: Protect cash flow in a crisis by knowing your numbers and focusing spend on areas that add to the bottom line. Lyden Smithers of Ignite Brands says to divide total ad spend by total sales to judge what PPC adds, and covers the 30-10-25% rule among other KPIs. Use slow periods to improve listings and keywords, and negotiate better terms with suppliers who also want to keep the business going.
Co-founder of Ignite Brands and leader of Titan Networks, Lyden Smithers, shares strategies to improve cash flow during a crisis situation .
MAINTAINING CASHFLOW DURING COVID-19 – WHAT YOU’LL LEARN
- About Lynden Smithers and Ignite Brands
- Current State of Amazon
- Protecting your Cash Flow
- The 30-10-25% Rule and other KPIs
- Quick Wins in taking over New Brands
- Dealing with Suppliers
- Ensuring Delivery in time of Crisis
- Tip for Exiting FBAs
KEY POINTS
- The coronavirus crisis situation has affected different products differently. Knowing your product and positioning it based on new reality may help prevent business slow down.
- Use the time at home productively by reviewing how current products are positioned and presented in Amazon and the keywords being used and how to increase “click-ability” and sales conversion.
- Make sure to include in the business analysis the total cost spent in advertising/total sales to determine the value added by PPCs.
- This is also the time to negotiate better terms with suppliers as they are also interested in maintaining the business. Knowing your numbers is very important in the negotiation with suppliers.
- Consider contacting warehouses to see if they can still accommodate shipping your products.
- Maintaining a continuous growth is crucial in showing good numbers when exiting. Focusing the business on areas that make substantial contribution to the bottom line, makes sure that your cash is not tied up on useless endeavors.
- Make sure to send a message to hello@lydensmithers.com if you’re interested to know more about Ignite Brands or Titan Networks. You can also drop by Lyden Smithers’ website for more information.
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