Cash Flow

Cash Flow is the life and breath of business.

The life and breathe of any business is Cash Flow. Does the money coming in match the Money going out. That is Small Business Cash Flow.  With The Recession still going on at least for us on main street. Cash flow is something we used to think about weekly or monthly but now must of us are thinking and doing something about it daily.

Here are some things That I have been doing to help my Cash Flow :

  1. Do the you cash checks daily. Check the bank know when checks clear. Know what checks have been written and when they post. Doing your daily accounting is important. Know where you are and your numbers will tell you.
  2. Don’t wait to balance the checkbook. I know it bad news but you can’t change or correct it if you don’t know how bad it is. Face It head on.
  3. Know your pricing. If you have to discount to get the job, so be it. But know what your profit or loss is with every transaction. It you are selling services that have a lot of components, follow and track it. Don’t assume that you are making a profit. Margins are small. So don’t assume you are making money We track it for every invoice. You can’t afford to lose money on any transaction. Turn down the job if you are not making money.
  4. The deepest discount should be given for cash transactions. They are deposited immediately and do not bounce or get charged a percentage. Ask and you will be surprised how many people don’t mind paying cash if you ask and offer them a discount.
  5. Cash Flow issues are never permanently solved. But it is important that you managed  it well.

Bad Cash Flow will destroy any business. When someone owes you money, unless it is in you hands, it does nothing for you. Avoid   having people owe you money whenever possible. You are not a bank. Don’t let people treat you like one.

~Gregg Kerr

Your  Business Coach

Be Thankful for Your Customers

Thankful to Be in Business

Hello everyone,

I hope you had a good holiday.

I was able to spend the long weekend visiting my new grandson and I was able to take the time to do some thinking about what I am thankful for. So what does that have to do with your and my businesses? Well, I see it like this.

The last couple months I have been thankful for the business that I have been getting. We all know that those in our field have not been getting the traffic that they need. I was talking to a supplier the other day who said that 20 customers that he had have folded up and given up.

I am thankful that I was not one of them. Having a thankful frame of mind can help you when dealing with you customers. Remember that everyone who does business with you is an asset. That relationship needs to looked after and nurtured. Being thankful is an important part of any relationship.

I once heard that a customer is worth $10,000. I don’t know if that’s true. But, if so, we need to treat them like they are $10,000 clients. I am Thankful for those kind of clients and any kind of clients.

I hope we all manage to keep a thankful attitude all year long.

Jump Start Your Business

Battery Power

Jump Start Your Business

Hello everyone I hope you all are doing well in your businesses.

I would like to share something I have learned this past month. Like you, I run a small business. Also like you, I have been scared watching my monthly totals drop as the government decides what they are going to do with taxes, health care and the like.

This past month, I decided to put an all-out effort into making my totals increase no matter what news came out on the economy. I did not spend much money on advertising. But I spent a lot of effort on relationships that I have already built with existing customers. I also spent time with my employees, working with them to provide better service and finding things to offer to every customer that comes into the shop.

At first, I must admit, it was very discouraging. It took a lot work. Not just physical work, but a lot of mental work, to get my crew and myself in the right frame of mind. In other words, we focused on what really counts.

After one month, this is what happened. Overall, our total went up by more than 30%. The average ticket sale went up by 15%. The weekly customer count went up by 10%. It was the best month we have had in an entire year. And this came on the heels of the worst mouth we had booked in over a year and a half. My employees are working harder but seem happier. They have even started bringing customers to the shop. I’ll get into this in detail in a future blog post.

So what happened? I can only attribute the change to the fact that we decided to focus on what really matters in our business. So what we all need to do is sit down and focus our thoughts and efforts on what we do in our businesses and recommit to doing it and doing it well.

Here is an Action Plan:

  1. Remember why you went into business in the first place. Relive your dream.
  2. Write down your original vision and then check to make sure you are on track with those values.
  3. Ask for help. Ask someone who will be honest with you instead of someone who will just fill your ego with fluff.
  4. Put together a plan. Divide the big task into smaller tasks that are easier to accomplish. Track your progress. Test and Measure. Push what works.
  5. See if you can reignite the spark that started in the first place. And then go out and do it. Don’t let anyone tell you that you can’t. We should set our course and follow it. There is no one that can stop you if you really want make it happen.

If you would like more details about what I am doing to turn around my business, send me an email with your request. I will be happy to provide you with more details that might help you right your course.