Do you constantly scrutinise your bank account to check the latest balance?
Do you ignore your bank balance in the hope it’ll all be okay if you don’t look?
Welcome to Alison Bradford business coach, sharing how you can instantly improve your cash flow.
‘Whatever your attitude to managing your money, as a business owner you absolutely cannot afford to bury your head in the sand.
I know you may have started your business to follow your passion or create a more flexible life.
This shouldn’t detract you from the fact that the primary objective of every business is to make money.
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It’s nothing to be embarrassed about.
You can be proud about wanting to make money from your business.
After all, profit is likely to be funding the reason why you started your business.
That’s the cold truth.
One of the admin tasks I still relish doing in my own business is sending out invoices.
I could easily outsource it someone else but I choose not to as I find it really satisfying and it reminds me of why I’m doing this. [Rosie: I send my invoices out myself for the same reasons]
It’s not about making money for the sake of it (though this is fine). It’s about what it enables me to do: run a business around my family and maintain the life we have.
If money isn’t coming in to your business fast enough, I understand how stressful this can be. But DON’T PANIC!
Instead, stay calm, and follow these top 3 tips to improve your cashflow this month.
Make a list of your previous customers and give them a ring. Find out how they are and see if you can help them any more. This isn’t a ‘sales call’ it’s a ‘catch up call’, but you just may well remind them about some more work they want to do with you.
Make a list of people who have said they are interested in working with you, but haven’t made the final decision. Your leads! Call all of them to see if they are ready to start working with you now.
NOTE: Under no circumstance change phoning them for sending an email. You will always bring in more money by having conversations on the phone (or face to face if you can), than by sending an email.
Do you know how much you have owed to you right now in unpaid invoices?
If nothing, fantastic, you can skip onto the next tip. Otherwise pull together a list of who owes you what and get on that phone again.
This is not a time for being embarrassed and not wanting to offend. You have the done the work and not been paid. This is not acceptable.
Phone them now and arrange when and how they are going to pay you.
NOTE: If you are thinking ‘I don’t want to upset this customer in case they want to work with me again’, then I have 2 things to say to you. 1. If they are a bad payer you do not want to work with them again. 2. If they are genuinely a good customer who has just made an oversight in not paying you, they will appreciate you reminding them.
What are you paying for this month that you will not miss if you cancel it? Go through your outgoings and eliminate anything you don’t really need before that monthly payment comes out of your account.
You can always re-instate it a later date once your cashflow has improved.
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It can be common for businesses to experience peaks and troughs in their cashflow, but this doesn’t make the troughs any less scary.’
You can connect with Alison Bradford on Twitter at @alisonbcoach