From Out of Control to Cash Confident
When we first met Alex (not his real name BTW), his company was doing well.. $100,000 in profit that year.
Not too bad, right? ….Wrong!
His cash flow was totally out of control!
There was a mountain of credit card debt. Every month, he struggled to pay the bills and meet payroll. There was zero money available to grow the business or to pay taxes on the $100,000 of profit.
That’s a LOT of stress to live with every day.
After working through our Cash Confidence System, Alex is much more relaxed. Profits are up! Credit card debt is gone. No more stressing over how to make payroll AND there’s money in the bank to pay taxes and grow the business.
Five secrets for building Cash Confidence
The good news is, anyone who’s interested can develop cash confidence.
Here are the five secrets to gaining a Cash Confidence mindset.
Secret One – Know your position
One of the first tools necessary for Cash Confidence is having a clear understanding where your business stands today. That means knowing the good, the bad, and possibly the down right ugly of where your business is right now.
Once you know your starting point, you can set your GPS for your new cash destination.
Secret Two – Map your customers’ journey
Secret two in developing Cash Confidence is having a road map that shows you the route your customers follow within your business to help grow it.
Your map will tell you how long it takes to
- Get a lead
- Convert the lead into a sale
- Deliver your product or service
- Get paid
With this information, you can begin planning for smooth flow of cash into your business.
Secret Three – Know what you’re owed
Your bookkeeper or accountant calls this Accounts Receivable.
Basically, Accounts Receivable is money waiting to flow into your bank account. This is money you’ve already earned, but your customer hasn’t paid yet.
You need a consistent way to bill your customer and consistently keep track of who and how much they owe you and when you can expect to be paid. This is an essential tool for easily and effectively managing and controling your cash.
Secret Four – Know how much you owe
Why is it important?
Anyone who has ever paid a bill late can tell you, not taking care of this part your business can quickly become very, very expensive. Late fees and additional interest expenses will rapidly eat away your profit and leave you, the business owner, with a lot less money to pay your personal bills.
Secret Five – Always know where you are
A huge part of building Cash Confidence is simply knowing where you are today. Taking the time to focus on a few simple things regularly will help you get a better understanding of the money in your business.
We recommend you pick the same day each week or month to do this so it becomes part of your routine.
Here’s what you need to pay attention to :
- Check how much money is in your bank account?
- Look at what you’re owed (Accounts Receivable)
- Review the list of what you owe others. This includes:
- Accounts Payable
- Credit cards
- Loans or lines of credit.
- Pay this month’s bills with money you received last month.
- For the BIG reward, set aside money each month for taxes and building your business.
Ready to learn more?
Becoming more financially knowledgeable and empowered will help you rest easier and give you more energy (and cash) to put toward the aspects of your business you love most.
If you’re ready to take the next step towards building your money mojo, complete the form below to get our free Cash Confidence Quiz