I could go on and on when it comes to the topic of cash flow. I’ve seen a lot during the last decade as an accountant serving 6 and7 figure businesses from all over California and across the states. I’ve seen the most egregious mistakes to the sweetest successes. I know what works and I know what doesn’t.
The quality and timing of your cash flow can make or break your business. 50% of businesses fail within five years. For 2020, let’s commit to the following principles that will undoubtedly solve your cash flow blues.
Get your money faster
Cash flow problems are the most stressful thing to deal with as a business owner. Take a look at “problem” clients. These are clients who tend to fuss and complain about your processes yet take forever to pay your invoice (after they bitch about it first). Mmmhmm you know exactly who I’m talking about! Don’t be scared to lose those clients as a result because you should only mind the business that values your expertise and pays you timely for your services. After all, that’s why they hired you in the first place.
Hire someone already
Bet on your business. Bring in team members in to handle all the incoming work. A good first hire is an assistant (consider a virtual one for flexibility and ease!). Start them off at 5 – 10 hours a week. Delegate tasks, emails, scheduling and projects. Believe in specialists and experts. Clone yourself by hiring someone who does what you do and see the available time multiply! Your quality of service, cash flow, and timeliness will improve when you hand off tasks, which will lead to happy, loyal clients and team members.. And of course more business! Cheers to growth!
Invest in marketing
Depending on the type of business you run, marketing is at the top of the list because word of mouth may not be enough to sustain desired business revenue. If you are unsure of how to leverage social media to help grow your business, there are so many free resources out there to get you started. Once you gain the confidence to pull the trigger and invest (strategically) in social media and other advertising avenues, it is only a matter of time that you’ll see a return on your investment.
Up Level Your Payment Terms
If not enough money is coming in, then you might not be charging enough for your services. Experiment a little – raise your prices and drop low end service offerings that only attract customers who do not see the value in your premium services. Secondly, if you have clients you’ve been working with for a while, it might be time to switch up the terms; package your services in to one that holds a ton of value and charge on a monthly term instead of a one time flat fee. That way good money flows to your bank account even when business is slow. Consistent revenue flow for the win.
To more money in our pockets,
P.S. Are you a business owner in need of a dope online business community where we dish about business, money, and life matters? Join the BLT – a free fb community delivering bite-sized business and life tips to satisfy your hunger to boss up. 2020 will be one for the memory profit books. Join today!