Three Ways to Get the Money Moving in Your Business

We’ve all heard the expression that Cash is King. Behind every great man is one extraordinary woman, so if Cash truly is King, then Cash Flow has GOT to be Queen!

The truth is that no business can survive without cash flow. It’s what keeps your business alive. If you are willing to work for a long time without getting paid, or are undercharging, money is literally flowing away from your pockets and you are killing your business.

There are three ways to keep the money flowing to you, instead of away from your business.

Number One: Mind the Money

All the profit in the world from your best clients is no good to you if you have to go months without getting paid.

Make sure you are not undercharging, first and foremost. Also look for ways to get other streams of revenue in your business beyond your primary service. Set your products and services up so that they have multiple price points and graduating levels of service for existing clients, so that you rely less on the much more labour intensive work of getting new ones.

Look at your payment and finance terms to make sure they are paying you quickly. Require deposits before work begins, or even payment in full depending on your business. You can even create recurring sources of income, such as a monthly package that automatically renews. Add on options (think “would you like fries with that?”) that provide your customers with a no-brainer choice to do more business with you. There are many ways you can structure this.

Finally, you need to be sure you’re spending your time like it’s money – so that’s where setting your priorities, having systems in place and getting help all work together to make sure your business is profitable.

Number Two: Keep an Eye on the Money

If you don’t keep an eye on your expenses, and your income, you don’t know where you stand, you can’t make informed decisions, and you won’t know if you’re meeting your goals. You might feel great about the work you’re doing, and you might even have lots of clients and work to keep you busy, but you could be leaking money all over the place.

To avoid this keep on top of your receivables, bill and collect on time, and be aware of your expenses and commitments. Elizabeth Potts Weinstein of The Wealth Spa offers some great resources for small businesses and solo entrepreneurs. Here’s one.

Number Three: Mind the Marketing

It may not be obvious at first glance, but did you know that marketing and cash flow are directly related? The cash flow you have today is the direct result of your past behaviors – in other words, your marketing, and how you spent your time and money.

Many new business owners find themselves in a feast or famine business cycle, and think this is totally controlled by outside influences. Even though there are some factors beyond their control, the fact is that their boom times often lead to their bust times – because when they’re busy and feeling flush, they don’t market. When their sales are down, they’re in a panic to ramp up their marketing.

This is why one of the Corporate Fugitive Five Keys^TM is to show you how to create a marketing plan and routine that you will follow. Your marketing is what sets you up for future income – because it takes time for a potential customer to become a paying customer. When you’re busy and making money, it’s easy to be lulled into a false sense of security. You might slow down your marketing or neglect it completely. And since you’re making money at the time, you don’t notice any repercussion. You don’t realize that you’re stopping your future cash flow!

If you follow these three basic rules, you’ll be well on your way to bringing Cash and Cash Flow into your business.

Want to use this article? You can as long as you include this footer: Sherri Garrity is the Chief Corporate Fugitive and creator of the Five Keys Success System^TM for ex-corporate employees and aspiring entrepreneurs who want to break free from the confines of their corporate experience and  live outside of the ordinary. The Corporate Fugitive system demystifies the business of setting up, managing, marketing and growing a successful and extraordinary business. Visit www.corporatefugitive.com for information and step-by-step resources to take you from overwhelmed employee to extraordinary entrepreneur.