A common source of stress for many business owners is cash flow. Too often, there just isn’t enough cash coming in regularly and there are too many leaks that drain the flow.
I’m Bria Simpson, an international business coach for over 20 years, and in today’s tip, I want to share some ideas that can help you improve your business' cash flow so you don’t have to keep riding the money roller coaster.
You may have tried a variety of things that end up quite frustrating. Perhaps you’ve lowered your rates to attract customers but to the point you’re almost giving away your work. Maybe you’ve invested a lot of money in expensive advertising or even more expensive coaching programs. Or perhaps you don’t have a referral system or follow-up system in place and just can’t get ahead.
The good news is- as long as your business produces excellent results- there is a way to scale and improve cash flow!
What you need is to create an effective cash flow system tailor-made for your business.
I teach several different strategies for improving cash flow. Some of them will be spot-on for you, others less so, and others will feel completely wrong for you. That’s okay. Just take what works for you and skip the rest.
Here are some strategies you can implement to accelerate your cash flow:
Get paid more of your fee, sooner: you could either charge a larger percentage of your fee at an earlier time or give people the choice of either a full payment up front or a service plan with a 15-20% increase. That payment plan ideally consists of no more than three installments.
Raise your rates: In the past, you may have lowered your rates trying to get more business, but this just isn’t sustainable in the long run. Be confident in your business’ value and consider ways to increase its value. Look at how much your competition is charging, and keep your rates in the top 25% of that price bracket. Instead of lowering your rates, strive to give better value for that price.
Please tune in next week for Part 2 of Cash Flow Strategies!