I remember when I struggled to get started.
Barely scraping by and able to make the bills.
I kept going! I built a small amount of debt to get it done!
I took a chance on me! With everything risked, I bet all I had on me! I knew in my heart I was in the right place to serve others, determined to achieve and endure any struggle to succeed. I had so much to offer to other business owners like myself, struggling through obstacles.
You have so much to offer! Right now you may be struggling with your own cash flow struggles.
Here are a few tips to focus on…
1. Understand your current situation.
a. Symptoms
b. Problems
c. Opportunities and Risks
2. How does the business make money right now?
a. How will the business make money in the future?
b. What does your success look like? What do you envision for your business? (The Dream)
3. Create a short term action plan.
a. Operations plan/Cash Management
1. Control Expenses
a. decrease the outflow of cash
b. approve all expenditures (the business owner)
c. freeze spending on anything not critical
d. lengthen payables (ask for longer pay terms)
e. seek new suppliers with lower prices or better pay terms
f. decrease rent if you can
g. as a last resort, decrease payroll
h. freeze personal draws as another last resort
2. Increase Revenues
a. focus on activities which net you the most profits
b. Promote cash sales
c. limit credit terms – offer credit options to encourage receiving payment sooner rather than later accepting credit cards, have finance relationships lenders
d. customers who owe you today, offer a discount if they pay today
e. factor your receivables
The object is to receive and keep as much cash in your business to continue operations for the short term. Then you can focus on the long term. Significant change can be achieved in less than 30 day!!