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Australian cash

How to avoid the January Cash Crunch this year.

Let’s face it, January can be a real struggle for so many businesses. B2B suppliers have clients who are closed for the holidays, families are away, and staff take leave… there are a host of reasons that revenue can take a hit in January while our costs remain the same, or even go up if you pay leave loading. The end result is that we’re dodging calls from creditors, shifting money from one account to another, and trying to keep all those balls in the air at the same time. This has been true forever so why has no one figured out a solution? 

The good news is that there are 4 simple things you can do to fix the January Cash Crunch. 

 

Take advantage of Post Christmas Craziness. There’s a common misconception that once December 25th has come and gone, people just stop spending. There’s a belief that ‘everyone is on holiday’ or they’re trembling with fear waiting for the credit card bill to arrive. And it’s simply not true. Sure some people are away, but others are off work, staying home, and have more spare time to eat out, visit attractions with family, and go shopping. That shopping mindset carries right over to January as people look for bargains. I mean, who hasn’t watched in disbelief as usually rational human beings turn into crazed MMA fighters as they burst through the department store doors at 9:01 on boxing day to save 50% on a fridge they absolutely don’t need, right? That high purchase intent spills over into January sales too. Leverage that for your business and give yourself a shot in the bank account with a post-Christmas or New Year sale. Some examples that have worked well for us are 

    • Gift with Purchase 
    • Buy one get one free 
    • Bundled offerings (ie, our 3 most popular services/items packaged up with a $xxx saving 
    • Get the first month for only (insert ridiculous discount here) 
    • Exclusive offers like limited edition products or exclusive access to a person or training.  

 

Retarget your seasonal warm audiences. Most of us will have been running some form of campaign in the lead-up to Black Friday, Christmas, or both. If you haven’t been using paid ads, you’re probably posting more frequently, sending more emails, or making more calls. (If you’re not, we really need to talk) That means you’ll have more people seeing your content and being exposed to your brand, and higher levels of engagement than at most other times of the year. The end result is a bigger-than-normal group of people who are more comfortable with you and your brand and more likely to buy from you. You can retarget these people with more direct calls to action and with offers and generally get better than average sales, because they already know and trust you, at least to some extent. Your warm audiences include… 

    • Email lists 
    • SMS lists 
    • Social media followers 
    • Website visitors. 

Couple these with a great New Year Sale and you’re on the path to a winner! 

 

Help People Achieve those New Year’s Resolutions.  Yep, we’ve all done it. Made a big, bold, audacious promise to ourselves on January 1st, and then spent a fortune on fitness gear, gym classes, cooking equipment, courses, cameras, podcasting sets, garden tools, musical instruments… the list is absolutely endless. It’s the one time of year we actually feel good about spending money on ourselves with a genuine intention to make lasting change. As business owners we must leverage this opportunity, to help people make the change they so desperately want in their lives.

In this moment, if they really believe your product or your service can get them to that dream goal, there is no limit to what they will happily spend. The key here is to understand exactly what that dream outcome is and position your offer so it clearly articulates how it helps people get there and fills them with confidence that it works. 

 

 Take advantage of extra screen time. January is often a more relaxed time for most people. Some are on leave from work. Some are still working but they’re not quite as busy, there are no school drop-offs or pick-ups and the roads are a lot quieter. All this leads to a more relaxed mindset and that means we’re more open and receptive to ad messages, and we’re often spending more time online. With the rise in importance of short-form videos like reels, stories, YouTube shorts, and TikTok, you can take advantage of the fact people are online for longer, watching more video, and are more receptive to messaging by creating fun and engaging short-form video. Not sure how? Here are a few tips to get started… 

    • Use your phone and hold it upright not sideways 
    • Authentic video will resonate with more people than big-budget productions, so have a go at DIY’ing it 
    • Sound quality is important, get a small Bluetooth Lavalier mic (Google ‘em) for about $50 
    • Get your key message (hook) in the first 3-5 seconds. Hey, we have short attention spans 
    • People engage with people so have real humans in your video, preferably speaking. 
    • Try a bunch of creatives like product demos, you as the business owner speaking, testimonials, rapid-fire slideshows, and anything else you can think of to see what works best with your audience.  
Lavalier Mic
This is what a Bluetooth mic looks like

So, January doesn’t need to be a cash flow crunch. Plan your campaign now and start rolling it out ASAP. If you’re not sure how to create a simple and effective plan, check out our blog HERE or our podcast episode HERE 

If you’re ready for real marketing support, reach out to us for an obligation-free marketing audit with one of our superstar marketers HERE.