Why cash flow is sales & marketing's best friend

For any business, having a strong cash flow is key to becoming a healthy, sustainable company. Cash flow dictates how quickly a company grows, how it is able to settle its debts, if it should reinvest into its own business with new equipment or things to improve operations, and how to take care of any expenses.

One area that keeps a company’s cash flow strong is sales and marketing. Without a strong sales and marketing division, no company can survive. Sales and marketing tell the story of a brand and attract new customers, while keeping current ones interested in what the company is doing.

It is important and smart to invest the time and energy not only to develop the sales and marketing division, but to also ensure that those professionals are properly settling goals so that the company’s cash flow remains robust.  Take a look at a few of the reasons that sales and marketing is an essential component of cash flow strength and vice versa:

Sales and Marketing is the Outreach Portion of a Business

The sales and marketing department is basically responsible for the company’s social skills. Whether its door-to-door sales for a certain product or warm call leads that have been gathered, this section of the organization helps to pump money through the company. The sales and marketing teams are completely customer-centric and everything they do is to bring in more customers and to keep those buyers happy. When customer recruitment and retention happen, cash flow is improved. The flip side is that when cash flow improves, more money is available for customer outreach.

Sales and Marketing Make Ideas Happen

Whatever product or service the company is known for, it is because of strong sales and marketing campaigns. Marketing may also be dictated by what customers are commanding from the company. When marketers do their research right, they get a pulse on the target demographic. If a campaign is successful and yields positive results, this obviously makes cash flow through the organization stronger. All of that success starts with knowing what consumers want, though. When cash flow rises, so do the dollars available for sales people and marketers to keep making great ideas happen. 

Better Sales Leads

With better cash flow, the sales department can also be more selective with its clientele. Of course the product that the company offers will determine what type of customers the sales department goes after but it can also show preference to customers in a part of a demographic that’s more responsive.

For instance, some Snapchat users are younger without much access to capital. So if Snapchat’s cash flow is strong enough, it may be able to select users from that demo that have shown to be monetarily worth the investment. The same goes for those who watch golf, go to football games or even eat at certain restaurants. Companies have the ability to be selective with where their marketing dollars are spent if cash flow is strong enough to allow it.

Not sure your cash flow is what it should be to make your sales and marketing team soar? The right credit can also improve cash flow long term. Smart credit options can lead to new chances to do business in new areas that were once unexplored because there wasn’t enough cash flow.

Understanding the connection between cash flow and sales/marketing effectiveness makes a difference in how successful both operate. Look for ways to connect the dots between the two and keep your business buoyant.