27 June 11

HOW TO IMPROVE YOUR CASH FLOW

Cash Flow is the vein of every business and it is our number one asked question. Your cash flow is the lifeblood of your business without it you’re screwed….OK maybe not screwed but without a good cash flow it soon becomes extremely stressful and with stress usually what follows is desperation. That’s when it can go down hill.

Managing your cash flow can be tough because you feel like you and your business have to pay bills frequently however the payments don’t come in as frequently.

You don’t have to worry there are real solutions that any business can adhere too, so your business has a constant stream of cash coming in and you are stress free.

A lot of articles you read may say things like-

1.  Never Run Out of Cash.

2. Cash Is King.

3. Know the Cash Balance Now.

4. Do Today's Accounts Today.

5. Do the Work or Get Someone Else.

6. Don't Manage From the Bank Balance.

7. Know Your Six Months Cash Balance.

8. Cash Flow Problems Don't Just Happen.

9. Have Cash Flow Projections.

10. Take Care of Customers.

Now some of them I totally agree with, but I’m done stating the obvious like “Never run out of cash” No shit, I speak to so many of you and I know you want real solutions for real results. I’m not like the other kids I want to give you solutions, solutions and more solutions. Is that OK?

TOP 5 BUSINESS SOLUTIONS TO IMPROVE YOUR CASH FLOW

1. PLAN PLAN PLAN- Most Small Business get themselves in a cash flow pickle and need cash fast so they spontaneously have a last minute promotion…a desperation sale. You’re not alone I've done it, everyone has at one time. Just like a designer designs their collection 6 months in advance you have to do the same thing. Plan ahead know exactly what you are promoting and when, then give yourself figures to adhere too. Then you can repeat the promotion and you’ll know what figures to expect plus more for the next one.

2. MAXIMISE PEAK TIMES- Certain times of the year bring in the money now instead of buying that extra cocktail to celebrate have a piggy bank that you keep for quiet times. Wealth creation experts say pay yourself, invest in yourself, save and give. On the flip side during quiet times use this time to think outside the square and go out and bring the business to you, it doesn't have to be expensive, be creative. We can brainstorm this area anytime.

3. KPI’s- Ensure that your team are playing the same game for the same win and reward them for it; I am a big believer in incentives. Good staff can be hard to find so look after them. Share your vision for your business and encourage them to embark and embrace the journey as well. I like to give my team the option of creating their own KPI’s and selecting their own reward. Often I find that Small Business owners think everyone wants cash, that is not always the case. Some want a movie ticket, a book or maybe they want you to save it for a holiday fund for them. Be creative it doesn't have to be expensive and lavish.

4. CREATE CONTINUITY- Now this can be done with loyalty programs, reward programs, referral programs and I do have a secret strategy that I use, that is available for anyone who starts the silver or platinum mentoring. Again be creative.

5. CREATE PAYMENTS OPTIONS- A lot of people recommend getting money in quickly and then keeping your cash as long as you can. While that may work I find it a little old school, we are all in business and we all have bills to pay and the same concerns so mutual respect is far more successful. I suggest coming up with a payment plan that both parties are happy with. Always create a win: win.

 

 

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