5 Tips to Deliver Authentic Cash Flow Now.
I am sure you have experienced having big dollars coming through your business and still have difficulty paying your rent or getting your own paycheck. Have you ever asked yourself, "where the heck did all that money go?" You would not be the first person to ask that. While it's true that closing a deal is vital, it's even more essential how revenue flows through your business. You can stuff all kinds of money into your pocket but if your pocket has holes in it--bye bye money! Here are 5 ways to increase cash flow and start keeping it right now.
1. Run It Lean And Keep The Green. Are you eating out often using your business credit card and then call it “marketing”? Do you visit family across the country or have beers after work and call it “traveling and entertainment” in your accounting program? Just don’t. Using your hard earned dollars for personal luxuries unrelated to business is like stealing from your own pocket. "Run it lean" means until you KNOW you're making a profit, don’t throw away your hard-earned money on extras. Definitely, invite an associate out to the local pub or restaurant where you can invest time and cash available for authentic relationship building. If you discipline yourself now you will have a better return later and it will add useable cash to your budget.
2. Stay Focused On What You Do Best And What You Know Well. Okay, I get the entrepreneur spirit. I do. But being distracted by every shiny new thing that can give you "overnight success" is not healthy for your business. For example, If your primary source of income is electrical then make it stellar. When you have established yourself as an electrical sage who can deliver awesome service then take steps to add another stream of income. I am not talking about ancillary services. Add-ons are great for cash flow. But Please, don’t move on to something out of your scope of work until you are an absolute expert in your main revenue source.
3. Keep Marketing Practices Consistent. Seriously now. I know it’s not always fun and it may be difficult trying to plan your marketing strategy. But it is necessary. If you’re not savvy, copy what is working for others and improve or modify it. Create a simple plan and stick to it. You can adjust your strategy every 3-4 months but you will not see results unless you are consistently serving up your relationship skills to your prospective clients. Put marketing on your calendar and just do it. Every time.
4. Increase Your Conversion Rate. This means, get more people to buy more of your stuff. You might say, “Of course I need more sales. But I can’t get them—that’s the problem!” But even incremental increases in your conversion rate will make a huge difference in the flow of cash. One of the most effective ways to increase this is to simply add benefit. For example, a service company may give a lower rate for annual maintenance programs and then give a 10% discount on repairs. In this scenario, you are bringing in cash and also creating an opportunity for sales. Another way is to add services or products that are complementary at the point of sale. For example, if you are selling a carpet cleaning, add-on cleaning upholstery. If you are selling a beautiful journal, add a matching pen or bookmark. Although the added revenue may be small per sale, across all purchases, it will make a significant change to your bottom line.
5. Charge The Right Price For Your Product Or Service. By far the most painful challenge I hear about is that after employees and materials are paid for there is nothing left for the business owner. It is maddening when a project you put your heart into ends up actually costing you money. Ouch! This will kill your cash flow and your happiness quick. To price a job appropriately it's necessary to account for all costs in your business. It's all about knowing your numbers. Of course, tons of variables go into creating a profitable business but charging the right price is crucial. Are you feeling unsure about your price? Do you want to eliminate stress and set your price with confidence? I created this worksheet just for you! Click here==> Passport to Profit.