Cash is king.
During difficult times people prioritize which bills they pay first. Of course, they WANT to pay everyone but because their own cash flow is a mess they will often pass their issues on to you …If you let them…
Here are four ways to improve your cash flow:
Ask for Complete Payment Up Front
This sounds simple but I am regularly amazed at how many professionals and business owners do not do it. Simply ask for payment at the beginning of your relationship. Think about it, you don’t go to the movies and pay after the show if you like the film.
Get payment before service is rendered.
Raise Your Prices
There’s a pretty good chance you provide more value to your clients/patients than you realize. Make a detailed list of the value of your services to your clients. Take great care to determine how much money you save them or how much value they receive from their relationship with you.
Once you have an understanding of that value, spend your time and energy demonstrating it to client. Once you both agree on the value of your services, you can easily charge a fraction of that number.
A business consultant develops a business strategy for a client that will result in at least $4 million in new business (conservatively) over the next 3 years. He can easily command a fee of $75,000 for that business strategy development engagement because it is worth (at least) $4 million.
The key is gaining agreement with the client on the value of the work you are doing. Once you have that, agreeing on the fee is easy.
Target Better Clients/Patients
Not all clients are created equal. Focus your time, energy and marketing dollars on clients who provide the highest return on the investment of your time. A client who is responsive and engaged in working with you is not only a pleasure but he/she values your time and effort.
Better clients can often pay higher rates and will often pay your fee upfront without hesitation.
Set Up Subscription Programs
No matter what business you are in, you can set up a program where your client/patient pays monthly for access to you and your services. These subscription programs can help you smooth out the peaks and valleys in your business.
The bottom line is that you don’t have to put up with poor cash flow. If the money is slow in coming in you need to exercise your right to select better clients and use better business practices.
Don’t blame the economy. The choice to get more money in the door is yours.
Remember: Cash is king. Without it your kingdom will starve.
Take action right now.
Here are some other resources you will find useful:
What would you do with an Extra $100,000?
This video asks a question few business owners can answer. Your answer is not as important as the fact that you plan on making an extra $100K…Click below for more.
The Business You Are Really In
Have you ever wondered why you marketing doesn’t work? It’s probably because you are focusing on the wrong things. Click below for a Podcast that covers the business you are really in.