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Inspire Results Business Coaching
Tips and Tools for Small Business Leaders
August 2020
How to Improve Cash Flow in Your Small to Mid-Size Business
If your business is a body, cash is it’s blood. Just as cholesterol blocks healthy blood flow, things like slow invoicing and lack of financial reports can block healthy cash flow.

The pandemic of 2020 showed a lot of us business owners how fast cash flow could dry up. A majority of small and mid-sized businesses were in hot water within 2 weeks of sales slowing or halting.

When sales and revenue go down but overhead stays the same, it’s a nightmare situation for business owners.

Interestingly, even though you’ve successfully grown your business, you can still feel the squeeze of poor cash flow. If you’ve grown a successful business, you should be able to do things like buy that piece of equipment and make payroll with no worry. And you can.

Reducing expenses and reducing the time it takes to get your money for services rendered are two ways to get your cash flow under control. Here are a few of the other ways to permanently strengthen your business’ cash flow. Check out more in our blog post.

  • Require the customer to pay 50% of the quote up front. Use the deposit to pay for your upfront expenses. Then you’ve got cash to cover your costs without carrying them on your books for 30, 60, 90 days or more.
  • Invoice immediately.
  • Change your terms from 30 days to “due upon receipt,” 7 days, or 14 at the most.
  • Be diligent in collections. Create a contact schedule and follow it to the letter. Once you let it get past 30 days, the chance of getting paid decreases., over 90 days, the chance you’ll ever collect it is little to none.
How Long Since Your Last Price Increase?
Speaking of strengthening cash flow, you may at first dismiss this one—raise your prices. So afraid of running off customers, some small to mid-size business owners haven’t raised their prices in years. In all the clients we’ve coached, not one received a complaint when they raised their price!

We asked one restaurant owner what item she sold the most of. She replied, “burgers.” We asked how many she sold. “200 a week,” she said. She’d been charging $5.95 since 2007 so we suggested for 1 month she raise the price to $6.75. She still sold 200 burgers and the $.80 increase made an additional $640 in the 1st month and $3840 in six months. Six months later she raised the price to $7.29. Selling 200 burgers/week at $1.34 more per burger over the next 6 months resulted in $6432 additional income. That’s a total of $10,272 additional income in the 1st year. Just think how much additional income she’ll make if she raises the price on 10 items, or 20, etc.

Meet the Inspire Results Business Coaches: Brad Justus, Business Coach, Roger Engelau, Certified Business Coach & CEO, Natalie Menke, Business Coach, Chad Blacklock, Business Coach
Upcoming Events
Growth Plan Workshop
We held a safe and socially-distanced June 25 Growth Plan Workshop to rave reviews (especially the taco bar)!

Join Us at the next Growth Plan Workshop to Update or Create Your Small Business Plan

September 24, 2020   9-3 pm

D
iscover the potential in your business by completing a 1-Page Strategic Plan. Then break it into quarterly, monthly, weekly,& daily goals, getting a line-of-sight from daily tasks to your 10-30 year purpose. Step out of the day-to-day business for just 1 day, get organized, complete a prescribed planning process, and walk away with an action plan that leads to greater profits and free time back.


Get more out of your business in the next 90 days than you ever thought possible!

Holiday Inn Indianapolis Airport
8555 Stansted Road, Indianapolis 46241


For owners & leaders of small to medium sized businesses. Bring your 2nd-in-command or your whole leadership team!


Back to Business Roundtable
August Topic - Cash Flow

Aug 7 - Natalie Menke, Business Coach
Aug 21 - Brad Justus, Business Coach

We’ll kick it off with a 15 minute presentation on the most up-to-date issues. Then we open it up so business owners can seek advice from one of our Inspire Results business coaches or like minded business owners.

Back to Business Roundtable's occur every other Friday from 9-10 a.m. EST.

Submit this form or
Email Kena for the link to join our next virtual meeting.
"Managed money works harder, goes further, and accomplishes more than spending without a plan." - Sandra Simmons
317-908-5809 | InspireResults.com
 
 
Inspire Results, 6521 E. Rolling Valley Ct., Mooresville, IN 46158, United States

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