Panning for Gold – How to Increase Cash Flow in a Down Economy – Week 1
It’s October 2011; is your business going to make it another year? If you have noticed that your cash flow has turned into a light trickle, it may be time to ask yourself some tough questions. A business without a sufficient amount of operating capital and a steady cash flow could face sudden death. This month, our blog features four possibilities to change the trajectory of your company in slow economic times.
Week 1 – Create Continuity Products & Income
For many service-based businesses, you make money when you sell your time and expertise. If you are not working, you are not making money. Also, if you are a service-based business, you can only accept the number of clients that you and your staff are able to manage at a given time. If you adhere to this style of business, your income will make a major shift downward in a tough economy. Customers who stop calling or coming in the door during this time may seriously affect the profitability of your venture. What is the best solution for these business owners?
Offer a product or service that sells after hours, over the weekend and during the holidays.
By expanding your products and services into other forms of revenue (such as a series of books, e-books, paid downloads/pre-recorded trainings/webinars, etc.), you are able to open your business to a greater number of potential customers and enjoy the reinstatement of your cash flow. This is also known as a passive stream of income.
Other ideas for continuity income are:
- Collect a commission for introducing colleagues who go on to do business with each other
- Host a paid seminar or workshop in your facility
- Franchise your business model to other entrepreneurs
Which methods will you begin incorporating in your company this month? Today may not be the opportune time for you, but hold on to this thought.