Need to get More Money FAST in your business?
I’ll show you how…
Watch the video and/or read below:
(You might also want to check out Roadmap to Recovery – Recession Proof and be a Corona Virus Winner)
Cash Flow is King, Queen and everything in between.
There’s a lot of uncertainty in the world right now and in times of uncertainty.
With COVID-19 we expect ups and downs. The trick is to capitalise on the ups and weather the downs.
Unless you can predict these waves with accuracy you need to know which techniques you can use to get More Money Fast.
Now is the time for businesses to focus on cash flow because that’s what’s going to give you that little bit of extra security to get you through any down period.
There are many techniques and approaches to mange your cash flow we will focus on five 100% legal and ethical ways to boost your cash flow.
Each approach has pros and cons, short and long term costs which we will explore.
Sorry – there is NO one size fits all you need to decide what works best for your business….
But don’t worry I will help you to decide.
5 ways to Get More Money Fast.
I’ll go through one and explain the advantages and disadvantages. (I’ve saved the best for last)
- Capital Injection
- Borrow Money
- Inventory / Stock / Work In Progress Management
- Payables and Receivables
- Profit Maximisation 💥💥💥💥💥
Let’s explore each of these options to Get you More Money Fast.
Difficulty level: ✔✔✔✔✔
Capital injection. An investor or someone else buys into your business.
This is very difficult and time consuming as you must pout together a lot of material, have meeting after meeting to convince investors. It can take years.
Having an investor can add lots of value in many ways. But it’s the most expensive way, long term, for you to get cash now because you’re giving up control, you’re going to give up future profits.
An investor is only putting money on the line because they expect to get a whole lot more back…..
Difficulty level: ✔✔✔
Borrowing money is a great strategy for any business if it’s used the right way.
To borrow money to invest (i.e. get a benefit) is a great way to go.
But if you’re borrowing money, just to pay the bills, you end up with interest charges on top of the bills and it just gets harder and harder to pay…. This can harm your cash flow rather than help it.
However borrowing money is cheapest it’s ever been.
Use this strategy where you get an advantage e.g. borrow and pay early to get a discount if I can borrow at 5% (per year) and get a 2% discount every month (24% per year) to pay early. – This gives you a clear wining borrowing strategy.
Inventory / WIP Management
Difficulty level: ✔✔✔
Inventory, Stock, Work in Progress management is a fairly quick and extremely effective method of getting more money back in your bank.
For service businesses, it’s work in progress. Any work you’ve done but not yet billed.
For non-service businesses it is whatever you have sitting around that you haven’t yet sold. – the products that are sitting on the shelf.
This is real money sitting idle – it’s money but not in your bank.
You really want to strip this down to a bare minimum, there’s lots of strategies and ways to do that. The difficulty depends on your business model and the types of products/services you have.
Now is the time to focus on managing this area of your business.
Payables & Receivables
Difficulty level: ✔
Payables and receivables, payments and receipts is a very quick, cheap, and very easy way to get more money fast in your business.
Once you’ve billed something, how quickly can you get the money in?
The quicker you can get that money in the more you have in your bank, the more cash flow you have.
In recession there is also a risk of people that owe you money not being able to pay. Keeping in front of your customers by making it easy to pay and reminding them even before its can provide fantastic results.
Other strategies (with various costs) include; upfront payment (maybe with a discount offer), buy now – pay later services, factoring (selling your customer debts to a 3rd party).
When you’re making payments make sure that you’re paying on time. Not early.
If you pay early, make sure you get a decent benefit, e.g. a discount greater than your borrowing costs.
You can pay late but of course that could impact your future supplies. You don’t want credit cut-off from a major vendor. Instead think about the borrowing strategy to get a discount for those vendors.
Difficulty level: ✔✔
The final one is all around profit. It is the most often overlooked, but provides the most benefit over time.
The key secret about focusing on profit is that it’s fast, it’s effective, it’s cheap to do, and its the gift that keeps on giving into the future.
Most business owners see this task as too hard because the don’t have a framework to drive profit focused decisions.
But the reality is there are not many levers that you can pull to drive profit, when you break it down essentially you have revenue and you have costs.
And so if you think about that. There’s two key things you can look at 1) Effectiveness and 2)Efficiency.
We have, really interesting formula, the 10 X revenue formula that you understand how much benefit you get from being more effective and/or more efficient.
Our clients easily easily pull out $25,000 – $30,000 profit in 45 days.
Profit Maximisation should be at the top of your to do list.
Here to help
If you’d like to learn more about cash flow and how to manage it in your business during these COVID times.
I’m offering a free cash flow strategy session.
It’s 45 minutes.
There’s no obligation.
Feel free to jump on and book an appointment with me.
More of our most popular resources:
- The best way to Measure Business Success
- Coronavirus COVID-19 BUSINESS READINESS CHECKLIST
- Roadmap to Recovery – Recession Proof and be a Corona Virus Winner
- Business Health Check – Recession Proof your Business
- KPI MASTERCLASS – Develop Kick-Ass metrics to elevate Customer Service and Increase Profit