Cash IS King
You’ve probably heard the saying “Cash is King.” It’s true. You have to be able to pay your bills and expenses, and it’s also true that you need to have some cash reserves for emergencies. But the main reason you should be concerned with your business’s cash flow is because it affects your business’s long term health. If you’re not making money right now, then you’re going to have problems paying your bills and making payroll in the future.
What should I do?
Many businesses are started with the idea of creating a steady income stream. That’s great, but if you can’t generate enough revenue to cover all of your expenses, then you won’t make any money. The bottom line is that if you don’t have enough money coming in, then you can’t afford to buy things like new equipment, pay for advertising, or hire employees. If you’re not making enough money right now, then you need to figure out why.
Here are some questions to ask yourself:
* Is there a problem with your products or services?
* Are you undercharging for your product or service?
* Do you need to change your pricing strategy?
* Have you priced yourself too high?
* Do you need better advertising?
* Are you spending too much time doing administrative tasks?
* Are you selling your services or products at the wrong price?
* Do you need more sales people?
* Are you spending enough on marketing?
* Are you spending more than you should on advertising?
* Are you getting enough customers?
* Are you spending money on the wrong things?
* Are you not charging enough for your product or service?
If you answered yes to any of these questions, then you may need to look at how you’re doing business. You may need to rethink your business model and determine whether you need to spend more money to get more customers. If you need to do more advertising, then you’ll need to find more ways to promote your business.
When you think about it, you don’t want to be a small business owner who doesn’t have enough money to pay his bills. It’s a scary situation. If you’re not making the money you need, then you’re going to end up in trouble. So before you start spending money on things that aren’t necessary, make sure that you’re not just throwing good money after bad.
If you would like to see what small incremental changes can do for your business, be sure to check out our free Simulator at https://impelonline.com/sim.