You\u2019ve probably heard people say \u201cCash is King\u201d. But, it\u2019s not.<\/p>\n\n\n\n
\u201cCash Flow\u201d is King\u2026and you\u2019ll have to master it to receive your crown.<\/p>\n\n\n\n
Have you ever wondered why the lion is called \u201cKing of the Jungle\u201d?<\/p>\n\n\n\n
The lion is not the biggest\u2026elephants are.
The lion is not the heaviest\u2026hippos are.
The lion is not the tallest\u2026giraffes are.
The lion is not the cleverest\u2026hyenas are.
The lion is not the most intelligent\u2026monkeys are.
However, when all of these animals encounter the lion, they RUN\u2026even though they may be more intelligent, more cunning, bigger, stronger, and even more powerful.<\/p>\n\n\n\n
They all become VICTIMS of how they think\u2026 about their strengths and vulnerabilities, about their surroundings and resources, and about how they prepare for these types of encounters.<\/p>\n\n\n\n
The lion is King because he has a entirely different mentality than all of the other animals in the jungle. The lion is King because he has a fearless attitude and his approach to every encounter.<\/p>\n\n\n\n
Attitude is a result of our beliefs. Our actions and approach to things reflect what we believe.<\/p>\n\n\n\n
To Claim Your Crown as King of Profits & Cash Flow, your internal belief system has to be more similar to the lion\u2019s beliefs\u2013a dominating attitude and approach\u2026<\/p>\n\n\n\n
\u2026particularly in a Cash Flow Crisis. You know. \u2026when you\u2019ve got more money flowing out of your business than flowing in to your business. \u2026when you might not have enough money cover payroll or other operating expenses.<\/p>\n\n\n\n
According to Business Insider, 82% of businesses fail due to cash flow problems.<\/p>\n\n\n\n
But, half of those failures could have been avoided with a sound strategy and\/or plan. When business owners have no strategy or plan in place for handling cash flow, including cash shortages, a cash flow crisis is inevitable.<\/p>\n\n\n\n
Here are 4 Ways to Turnaround a Cash Flow Crisis:<\/p>\n\n\n\n
Start asking new customers for a deposit or partial payment up-front, rather than billing the entire amount due in a single invoice after services have been rendered or products have been delivered.<\/p>\n\n\n\n
Start sending your invoices early. Adjust the management of your receivables to invoice clients immediately following the delivery of products or services, rather than sending out all invoices on a particular day of the month. The sooner you send an invoice, the sooner you will receive payment.<\/p>\n\n\n\n
Send invoices more frequently. Instead of waiting for the full completion of a job to send an invoice, generate invoices every week or every two weeks to cover the services delivered up to that point.<\/p>\n\n\n\n
Focus on your past due accounts. Scour your accounts receivable for past due clients and start making phone calls. You can ask past due clients for partial payments; in a cash flow crisis every cent counts.<\/p>\n\n\n\n
Make it convenient for clients to pay by offering additional methods of payment, such as credit card or mobile and electronic payment options.<\/p>\n\n\n\n
If you can delay or reduce the amount of cash flowing out of your company during a cash flow crisis, it will help reduce the strain on your working capital. Be honest with your vendors to negotiate payments or to inquire about delaying payments.<\/p>\n\n\n\n
Although some might be unwilling to budge, odds are vendors to whom you have been loyal will be flexible and willing to work with you during a tight situation. You will also likely be able to get some leeway or perhaps even a reduced obligation from your utility providers.<\/p>\n\n\n\n
Cash flow Leaks can be found nearly everywhere in a business. As a rule of thumb in business, you should always scrutinize every single penny that leaves your bank account, but you will need to be especially critical of spending during a cash flow crisis. During a cash flow shortage, you must prioritize your company\u2019s expenses. Eliminate all unnecessary expenses and only spend on the costs that keep you operational and generate revenue.<\/p>\n\n\n\n
There are also other areas where you can reduce costs and expenditures. Our teams look for Cash Flow Leaks in 166 areas in the operations of a business.<\/p>\n\n\n\n
Encountering a cash flow shortage should lead you to closely inspect your business plan, processes, operations and expenses. You need to determine why you encountered a cash flow shortage, whether it will be a recurring problem and you will also need to put a plan in place to handle future shortages.<\/p>\n\n\n\n
Use job costing to look at your business\u2019s profit and loss statements and profit margins based on individual categories within your company (jobs, clients, employees, events, marketing strategies, products and services) to determine which areas of your business are the most and least profitable. This will help you adjust your business plan to focus on services that generate the most profit , let go of clients who might be costing you more money than you realize, optimize your pricing structure and also identify areas of waste or unnecessary expense to remove from your operations.<\/p>\n\n\n\n
In addition to cutting non-essential expenses, in a cash flow crisis you can also off-load non-essential business assets. Although this is a temporary fix, as you can only sell an unnecessary item once, it is an effective and quick way to raise some cash when you are in a bind.<\/p>\n\n\n\n
Preparation<\/strong><\/p>\n\n\n\n Be Proactive. To prepare for that next cash flow crisis, it\u2019s always a good idea to create an action plan with standby resources. You should also keep accurate and up-to-date books & financial reports including (income statements, balance sheets and cash flow statements).<\/p>\n\n\n\n Review and maintain your financial statements on a regular basis to ensure you\u2019re always abreast of the financial condition of your company.<\/p>\n\n\n\n Prevention<\/strong><\/p>\n\n\n\n Be Protective. Take steps to actively prevent cash flow shortages, such as cash flow forecasting, monitoring key performance indicators, using management accounting and tightening up your business operations.<\/p>\n\n\n\n \u201cAn ounce of prevention is worth a pound of treatment.\u201d<\/p>\n\n\n\n <\/p>\n\n\n\n YOU CAN NEVER OPERATE OR GROWTH A BUSINESS BEYOND THE LIMITS OF YOUR OWN ATTITUDE and APPROACH\u2026 (which are the results of your own BELIEFS).<\/p>\n\n\n\n You have to Claim Your Crown as King of Profits & Cash Flow in order to build a sound, stable business. And that starts with having the right attitude and right approach. And if you\u2019re looking to grow your business, it means installing a solid management accounting system.<\/p>\n\n\n\n Management accounting focuses on using your business\u2019s financial reports to forecast cash flow, improve cash flow and completely avoid cash shortages. Monitoring and improving key performance indicators, such as your company\u2019s days sales outstanding and profit margins, can help you avoid cash flow shortages altogether.<\/p>\n\n\n\n As experts in business bookkeeping and accounting, SiriusBTR\u2122 helps its clients improve their cash flow management by implementing smart bookkeeping and management accounting systems optimized to help business owners and management teams make strategic \u2013 rather reflexive \u2013 business decisions.<\/p> With a smarter back office, you can fine-tune your business model, increase cash flow and improve profitability to get your business out of the financial weeds and elevate it to the next level.<\/p> If you\u2019re interested in finding out more, book a Free Introduction Call.<\/p><\/blockquote>\n<\/div>\n","protected":false},"excerpt":{"rendered":" You\u2019ve probably heard people say \u201cCash is King\u201d. But, it\u2019s not. \u201cCash Flow\u201d is King\u2026and you\u2019ll have to master it to receive your crown. Have you ever wondered why the lion is called \u201cKing of the Jungle\u201d? The lion is not the biggest\u2026elephants are.The lion is not the heaviest\u2026hippos are.The lion is not the tallest\u2026giraffes […]<\/p>\n","protected":false},"author":2,"featured_media":1324,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"zakra_page_container_layout":"customizer","zakra_page_sidebar_layout":"customizer","zakra_remove_content_margin":false,"zakra_sidebar":"customizer","zakra_transparent_header":"customizer","zakra_logo":0,"zakra_main_header_style":"default","zakra_menu_item_color":"","zakra_menu_item_hover_color":"","zakra_menu_item_active_color":"","zakra_menu_active_style":"","zakra_page_header":true,"nf_dc_page":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1278","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"\nLOOKING TO GROW OR SCALE YOUR BUSINESS?<\/h2>\n\n\n\n