Momentum - Business to Business Online Magazine MOMENTUM January 2020 | Page 28

FROM THE BUSINESS COACH MIKE HILDERBRAND, BS, MBA ActionCOACH of Galveston [email protected] www.galvestonbizcoach.com I RESOLVE TO HAVE MORE CASH THIS YEAR! R esolutions and good intentions will only take you so far. You may recall the Capital One commercial starring Jimmy Fallon where he says, “Who wouldn’t want more cash?” Of course, the solution is having a Capital One credit card that allows you to delay outlaying cash all at once for purchases… at a price. Sometimes, the use of credit in some form is a good strategy for growing a business or increasing your cash position. The good news is that you don’t necessarily have to “pay” to have more cash. In many cases, if cash is managed properly, it often will result in more cash on-hand, more often. How do you do this? 1. Do a cashflow budget. Yes, I used the “B” word. Just to be clear, this is different than your checkbook and is not done entirely in your head. Develop a simple spreadsheet to manage the in- flows and out-flows of actual “cash” in your business on a monthly or even daily basis. By having a system (spreadsheet) that allows you to see and project where the money is, you can start to make better decisions on when to spend and when not to spend. In many cases, just managing purchases a little better will allow our bank account to stay in the black and allow you to sleep better at nights. 2. Develop a System for Collecting Receivables. Yes, a “System” for collecting outstanding receivables. You may be short of cash in your account because the bulk of your biggest customers are holding it in their own bank accounts. Develop solid scripts for collecting outstanding receivables and allow the best people to call on those accounts using the scripts. It is not always the business owner who is best at collecting outstanding receivables. With good scripts, you can leverage others in your business. 3. Sell Obsolete Equipment. Obsolete 26 MOMENTUM | 2020 Year of Small Business to you because you no longer use it or cannot maximize its output. What equipment is sitting on your floor that is producing very little or nothing? You may have paid $xxx for that piece of equipment, but it may cost you more to utilize it than it would to sell it. Utilize E-Bay, Craigslist, the newspaper, trade groups, etc. to sell what you need to liquidate. The cash you bring in can be used towards other things in your business that will move you forward. 4. Sell More! Obviously…Right? What’s your plan on “how” you will generate more business this year? Hope is not a good plan. “I think xxxx…” is not a good plan. If you have seen consistent declines in your sales and profits and haven’t planned on doing something different this year, you may be living the modern-day definition of insanity (continuing to do the same things repeatedly, expecting different results). Develop a plan in the key areas of your business on how and when you will implement the best strategies! Read books, watch videos, join trade groups, and get a coach. You owe it to yourself, your business, and the ones you support to plan for your success. Start today.