Being cash-strapped in your business can be soul destroying with all your hard work leading to what feels like nothing – but help is on the way.
Hopefully, you can follow a few of the steps below and put them in your game plan for surviving this challenging time and rising above the stress:
Get more business
I know, I know – easier said than done, right? Wrong.
Get on the phone, make those calls, drum up the business.
Make it about your clients and what you can offer them. What is it that’s going to add value to their lives and drive more profit into yours?
Think about other offerings. Is there another service, product or program you can offer that will leverage more income to you?
Think outside the box – perhaps a referral agreement with another vendor that can drive some interest to you and some fresh leads.
Look at your expenses – seriously
So you think you have looked at your expenses and you have cut as much as you can.
Again, have you really? Have you cut costs or just trimmed the fat? Is there still room to move?
I know it won’t make you popular at first but consider taking the coffee machine away and saving on those coffee pods.
I can hear your gasps, but I’m sure your staff would much rather have a company to work for than a coffee pod in the morning.
I did a calculation on how much this would cost on average, a business with six employees.
I worked out that the average coffee pod is 63c, and most staff would have about three coffees a day.
So 63c x 3 x 6 (staff) x 5 (working days) and you are looking at nearly $60 per week.
That means well over $3,000 per year can be saved with this one small change.
Meanwhile, have a chat to your insurance broker. Have you analysed your premiums recently? Can you put all your premiums with one company and get bigger discounts?
Can you premium fund your policies so the cost is spread over the year rather than bulk amounts?
You can also look at the space you have: is it a complete necessity to your business?
If it is, could you perhaps get the same productivity in a smaller space? Would your landlord be open to a reduction in your rent if you gave us some space?
Look at your invoices There is technology out there, like MYOB PayDirect Mobile that allows you to take card payments on your smartphone.
You can even accept online payments directly from your invoices with MYOB Click to pay.
Think about the technology that exists to get paid faster and increase your cash flow.
Your hourly rate as the business owner is huge.
Its value is probably a lot more than you are even aware of. Are there things that you do that you can outsource so that you can concentrate on the tasks that bring in more customers?
Can a Virtual Assistant help with your newsletters, social media and mail organisation?
Can a professional bookkeeper chase up your debts and keep your books ticking along so you know your accurate cash position?
The key here is to use the time driving more business to you. Don’t get complacent otherwise you are just adding costs instead of driving profit.
Being a cash-strapped business owner will hopefully be a short-term ailment for your business.
By being in tune with your figures and considering the effects of decisions you make today and how they can affect you further down the track, you can keep ahead of the pack and be more empowered day by day.