If you missed part 1 and 2 please have a look for them first as this is a series.
So, today I’m going to talk about cash flow.
Mastering cash management will be critical.
- Have more cash on hand when you don’t need it – its best to have cash on hand before you need it.
- Construct a business model that fuels growth on sales. Incentivise early settlement of your invoice. Use gift cards to raise cash – remember though – you do need to honour these when cashed in – so make sure you can – his works really well for service businesses. Create cards that customers can pre-load so that you have the cash in advance.
- Use cash to make cash – yip – you know the saying “You have to spend money to make money”. Well this is true – sometimes spending on skills or betterment is an investment that will return 3-fold – pay for a course to learn a new skill that you can then sell to your clients (or use to gain new ones).
- Invest in some business or life coaching. I have helped many clients see things that they could not see because they were to involved with their businesses to be able to step back and review.
A mantra I have always lived by:
Turnover is Vanity
Profit is Sanity
Cash is reality
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