Hey!
Cash flow Statement is exactly how it sounds- it’s a key financial document that breaks down how much money is coming in and out of your business. The quality and timing of your cash flow makes or breaks businesses. 50% of businesses fail within five years.
I could go on and on when it comes to the topic of cash flow, but let’s narrow it to the top three problems business owners face in this realm. And I’m not one to harp about negativity, so I’ll also offer you solutions.
Pricing:
Problem: You aren’t charging enough.
Solution: I know the feeling. Cash flow problems are the most stressful thing to deal with as a business owner. It’s so stressful that it might distract you from the real issues concerning your pricing model. 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 lower paying clients or customers who aren’t willing to pay more. Also, 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. 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 pays you fairly and values your expertise. Afterall, that’s why they hired you in the first place.
Hiring/Firing:
Problem: Does this sound familiar? You have work coming in but you don’t have enough people to handle it. You feel stressed and overwhelmed with all the amazing new clients and projects coming your way instead of reveling in your business’s success. You’re stuck in this never-ending loop.
Solution: Hire more people.Bet on your business. Bring more team members in to handle all the incoming work. Delegate tasks and projects. Your quality of service and timeliness will improve when you hand off tasks, which will lead to happy, loyal clients & team members.. And of course more business!
Spending:
Problem: You don’t spend money on things like marketing and social media because you feel like you can’t afford to or that it’s not worth the cost.
Solution: You can’t afford not to because it takes money to make money. Marketing is at the top of the list because word of mouth is not enough to sustain a business. Take educated risks for the benefit of your business, because it will cost you so much more in the end if you don’t. And 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 (smartly) in social media, it is only a matter of time that you’ll see a return on your investment.
To more money in our pockets,
Chika
