There is no doubt, times are tough for some businesses now. Some sectors are thriving, but I am still hearing too many tales of people struggling as clients are postponing or cancelling work, tightening their belts and opting for the cheaper option, or trying to tackle themselves.
If you are being negatively affected, then take some time and work ON your business - stop and reflect.
What can you do to change your mindset and find new revenue streams?
MINDSET
Firstly, try not to panic.
Work through some, or all of the tasks below and YOU WILL FEEL BETTER. Taking positive action leads to positive results.
ASSESS YOUR FINANCIAL SITUATION
Take a good look at your finances. Are your financial worries clouding your judgment or creating paralysis?
Start with your Cashflow forecast so you can see where the potential problem times might be. Again, this is something I would encourage every business owner, no matter how large or small, to have and keep up to date. You cannot rely on your accountant to tell you how you are doing as this will all be based on retrospective figures. Nor is it good enough to rely on your bank balance figure only as an indicator of your financial well-being.
Have a system to ensure you invoice for work done promptly. Diarise to invoice immediately after the work has been completed or first day/Monday of the month. Can you ask for stage payments?
Tackle your credit control. What monies are owed to you? Ring all of your creditors today. Check they have received the invoice in case it has not arrived with the Accounts department. Ask if it is being processed. Remind them that it’s overdue and ask for a specific date when it will be paid. Then follow it up if you don’t receive it when agreed. It is an unfortunate fact of life, that many companies will pay based on “who shouts loudest”. If you are not following up, you may well get pushed to the back of the queue.
If you find this difficult, you can create an accounts@ email from your business so you can use that for all your accounts-related activities. Then ‘wear’ that hat when doing your accounts. This will help you feel more removed and professional. Ideally, you would have a system for issuing invoices, reminders, and follow-up dates systemised.
If this is still too difficult for you then seek the help of a credit professional. I have lots of contacts if you need an introduction.
Can you reduce your terms? I was working with a company recently that had 28-day terms for a service that most customers would expect to pay on collection. When we discussed why they operated like this, it became apparent it was historical with no valid reason. So, we reduced terms for contract clients to 14 days and for other customers, it became cash on collection. This had a massive positive effect on their cash flow and the customers all accepted the change as it was reasonable.
Can you renegotiate terms with the companies you work with? Either supplying or purchasing from? Again, this can ease your cash gap worries.
RESOURCES
Take stock of your assets and consider whether you are utlising all your resources. Do you have skills and services that you could use but have stopped for whatever reason?
LEAD GENERATION STRATEGIES
What lead generation strategies are you currently using? What have you used in the past that worked but you have stopped for whatever reason? I would recommend having five different strategies you use and allocating time to each eg 20% to each so you are not just focusing on those you find easiest or like more!
Are you looking for clients or customers in the right places? Where would your ideal client look for your type of product or service? Are you sticking with the comfortable options?
Some of the strategies need to be ‘hunter’ rather than ‘farmer’ so you get a faster response. Not everything can be a long game!
Plan your activities but do not spend valuable time on this today if this is a form of procrastination for you. Remember, progress not perfection.
MARKET YOURSELF
When was the last time you contacted previous customers and clients and reminded them of everything you do? Time flies by and people often only remember the one thing they purchased from you so it’s important to remind clients of your existence and everything you do/offer.
Review your marketing materials. Are you portraying the benefits of using YOUR services to your potential customers? What makes you different? Unique? Special? How will you help them overcome their problems? Are you focusing your energies on the right activities? Are you sticking with the safe options?
Use testimonials, reviews, and case studies to promote yourself and write blogs or articles to demonstrate your expertise.
GET SUPPORT
Brainstorm with trusted friends, peers, colleagues, team members, or your Mastermind group. If you haven’t got a Mastermind group, now might be a good time to reach out to other professionals you know and seek support. Identify successful and supportive peers whom you trust, to be honest, and direct with you. Family members and/or partners may not be the best option as they may find it hard, to be honest.
Remember, a problem shared is a problem halved. That may not be strictly true but as humans, we generally feel better if we feel heard and understood. Talk to someone today.
TAKE ACTION
These are only a few of the things you can do, and I have focused on immediate actions you can take today but with some tweaks to your systems, a lot of these problems can be prevented.
I guarantee that if you take action today, it will make a difference.
If I can help you with any of the tasks above then please get in touch TODAY. Please don’t be stressing alone.