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Tips for a Cashflow Crisis

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I know that with COVID-19 we have all fallen on some tough times when it comes to business and cashflow.  So I thought I would share some pointers on how to improve cashflow.

First and foremost get in the mindset of taking ACTION.  Without exception people who experience cashflow limitations are relying on habits that are not serving them well in business. 

If Cashflow is CRITICAL then ACT NOW. Most of it has to do with testing and finding your numers.

Prepare a plan of Action including

  • Calculate breakeven points for business and all sales people
  • Reduce non-income generating expenses by 10%
  • Increase conversion rate by training the team in sales
  • Set a target for increasing your average $ sale and then put in place 5 strategies to help increase it
  • Ask for help
    • From suppliers- would they accept a payment arrangement for next 6 months
    • From team- explain the situation to them and ask for them to rally around and put in 110% effort. Ask for commitment from them to increase productivity and reduce expenses
  • Reduce all debtors starting with any over 60 days
  • Reduce owners drawings to minimum amount.
  • Upsell or Cross Sell
  • Sell like crazy
  • Sell unwanted assets
  • Understand Cash Gap concept
  • Calculate gross profit margin on everything you sell and then focus on the items which are bringing in the most total profit (volume x margin)

Just remember that you are not the first person to experience tight cashflow in business and you definitely won’t be the last.  We are all in the same boat right now and there are some things that we can’t contorl, but you CAN control your own actions.

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I am a certified Business Coach with ActionCOACH, the World’s #1 Business Coaching Franchise (Entrepreneur Magazine, Jan. 2004 & 2005). As your coach, I will be working with you in five key areas. The emphasis on each area depends on your needs, the type of business you have, and your goals. The key areas are: Sales; Marketing and Advertising; Team Building and Recruitment; Systems and Business Development; and, Customer Service. My goal is to help small business owners, such as yourself, spend less time working in your business and more time working on your business. In the end, you’ll be spending less total time working and will be making more money. I’d also like to help you put the FUN back in your business and your life. As a small business owner myself, I know what it is like to worry about the day-to-day survival of the business and making the amount of money needed to run my business and personal life. I understand what it’s like to put in long hours and wonder what happened to the dreams and vision I had for my life and future. I am here to help you change all of that. We will work together to redefine your dreams and vision, and then we will put into place the necessary systems, strategies, and tactics that will allow you to turn your business venture into a thriving, successful one.