8 Ways to Keep a Positive Cashflow
If the customer is king then cashflow is most definitely queen!
In business, a lack of cash means that you just hit game over. There’s nothing more devastating than finding you’ve hit empty and you have no choice but to close the doors.
Here are eight ways to keep the cashflow positive;
1. Lead generation system
No clients = no money. Set up your business and marketing strategy to attract a steady flow of clients, new and repeat.
2. Get paid!
Don’t let invoices go unpaid. Be clear on when you expect to be paid and have a system in place to ensure you’re chasing any outstanding invoices.
3. Keep expenses lowOf course you have to spend money to make money but be realistic about the percentage you’re spending and make sure your margins are as wide as they can be. Invest in stock carefully and keep a close eye on your bank account. Having budgets for different things really helps when it comes to spending decisions. Invest in areas that will make money, like marketing that is working.
4. Price for profit
The lower your profit margins, the more difficult it will be to manage your cashflow. Price your products and services that allows you to make a good profit.
5. Have an emergency fund
There will be ebbs and flows in your business. Don’t withdraw too much from your business during good times. Keep a savings pot that you can fall back on during tough times. This rule goes whether you’re a one man band or have staff.
6. Plan for lean times
Most businesses have quiet periods, whether seasonal or natural dips in demand. Recognise these times and plan for them whether that’s keeping savings back, or creating seasonal products and offers to increase sales.
7. Passive income
Passive income is income that keeps on coming with minimal or no ongoing work. I know what you’re thinking – yeah, in my dreams Erica, and you’d right not to get carried away but with some upfront investment it can be done. I’ve sold eCourses and eBooks using automated systems in the past and these income streams helped keep our training business successful in between live courses. What additional income streams could you create for your business?
8. Guaranteed income streams
Ok, when I say ‘guaranteed’ I don’t mean 100%. Most income streams are capable of disappearing but having regular bread and butter clients is one reliable income source. For us it was subscription courses where we received a recurring monthly fee for training, this income really helped our cashflow. Nowadays I have several clients on a retainer which smoothes out my income.
What can you do today to help keep a positive cashflow in your business?
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