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Show me the Money! Lack of money, profit and cash flow is constraining to the health of a business. For a business owner, it is stressful, frustrating and sometimes even embarrassing. Particularly if you are working long hours and at the end of the day have little to show for your hard work. While this may be your reality today, the good news is that it doesn’t have to stay that way,because I am here to help. Really! Read on, and I’ll share some details that will explain why you may be short on cash. Better still, I will tell you what you can do to improve the situation. After reading this page, you may gain some valuable resources that you need to tackle your money quandary and understand that there are concrete actions that can be taken to get more money into your bank account. That is my promise to you. Let me be clear, I do want to talk to you. I would like to earn the opportunity to help you … but that decision lies with you. This page is designed to give you answers and ideas. And should you wish to connect with me, you can do that too. Before we get into the answers, you must be willing to agree to this…… There is a chance that you believe your business is unique and there are special circumstances for your situation. This is a very common belief among business owners who are faced with the lack of money, profit and cash flow. If this describes you … your first step is to let go of that belief. The reality is while every business has something unique about them, the principles that drive business success are the same across the board. What is outlined below applies to every business on the planet. I have seen it first hand in thousands of businesses. If you are ready to move forward on that basis, keep reading. If you are not ready to take me up on my offer, feel free to email me and I’d love to learn why you believe your business is the exception. This is a serious offer and I’d like to hear from you. Do you relate to any of these symptoms? The lack of money might be showing up for you in a variety of ways. We’ll get into the technical specifics in another section. I’ve listed below some of the most common quotes I have heard from business owners who cash-strapped. Let’s see which ones you identify with:

  • “My accountant tells me I’m profitable but have no money in the bank”
  • “We are busier than heck but there still doesn’t seem to be much profit at the end of the day”.
  • “We get a big influx of cash but it seems to go out just as fast as it comes in”
  • “I know I need more sales but that is easier said than done.”
  • “I think my accountant is from a different planet. I don’t understand her/his language”
  • “The market is so price competitive, we are continually getting squeezed”
  • “We can’t seem to increase our prices as fast as our costs are rising””
  • “Who has the time to do marketing when there is so many other things to do”.
  • “Keeping track of money coming in and going out gives me a brain hemorrhage”

All Symptoms come down to three possibilities

  1. Lack of Revenue
  2. Lack of Profit
  3. Lack of Cash Flow

You might be asking why we are stating the obvious. You are right, it is obvious and not complex. The key is recognizing what drives Revenue, Profit and Cash Flow. You must develop and understand the strategies that make the MOST sense for you and your business. And knowing is just the start. The real challenge comes in the execution of the strategies and achieving results. I’d like the opportunity to guide you – your step is to make the commitment and take action. Isn’t Profit and Cash Flow essentially the same thing? In some businesses it is, but that is not usually the case. As soon as a business has receivables,payables, inventory, debt, or assets, that it buys and sells, then profit does NOT equal cash flow. There are often scenarios where an owner would draw out cash that is not properly recorded on an income statement. So as you can see … it can be complex. Your first task is to establish, if in fact you are profitable. It is very hard (but not impossible) to have great cash flow without great profit. So how profitable are you? If you don’t know the answer to that, then that is your starting point. We are definitely profitable but we struggle with cash flow Perhaps you are profitable but it’s not translating into money in the bank. This is actually good news because with a profitable business there are a number of simple strategies that can be used to remedy this situation. There may be several underlying reasons for having poor cash flow in spite of being profitable and can be one or more of these:

  1. Paying for inventory (or labour) before being paid by customers (Negative Cash Cycle)
  2. Poor inventory management
  3. Poor accounts receivable management
  4. Paying bills before they are due
  5. Paying off debt principal
  6. Investment in assets
  7. Owners taking cash out of the business
  8. Theft

By adjusting or fixing one or several of the above scenarios, a profitable business may see immediate improvement of cash flow. I think we need to be more profitable Once you have reviewed your situation you may find yourself in the “not profitable yet camp”. If profitability is your stumbling block you may want to consider the difference between your revenue and your actual costs. A straightforward fix-increase revenue and/or decrease your costs. if only it were that simple! Well it almost is that simple. The first step is to understand you have two types of costs. You have Costs Of Goods Sold (COGS – your variable costs) and you have Overhead (fixed costs). With a good understanding of how these affect your business model it is a great start to finding a solution. Ask yourself, “Am I making money when I make a sale?” What are the margins? Another question to consider, “Is my level of overhead as low as it can be without compromising the ability for my business to stay in business?” Depending on the answers you will have a goal to work on. Additionally, I will introduce you to different strategies to employ that will help get any business financials into shape. Our Margins are good and we have cut costs as much as we can but we are still short on cash Assuming it is not just a cash flow issue (see above) and you know your costs are inline (i.e. you have decent margins and your fixed costs are as low as they can go) then the only thing left to do is – drive sales. I need to repeat that before you begin to invest time and effort into sales and marketing, it is imperative that you are sure your margins are appropriate.If you launch into a phase of increasing sales and your margins are weak, you will just end up spinning your wheels and at the end of the day, still have no more money in the bank. It may even bankrupt you if your cash cycle is not positive. Driving sales is a whole topic in itself, and the best strategies are completely dependent on your type of industry and the skills of the business owner. Other factors include the time and money resources that are available. The good news is that you don’t need to spend massive amounts of cash to drive sales So what is next? One question that might be on your mind is “what do I do from here?” At this point you should have a better idea about your business and the challenges you face, where your problems might lie, and perhaps have a feel for how I can help. Some good news for you – help is here. I help business owners do everything you just reviewed. I use simplified techniques and I use easy to follow strategies and tactics to help you build profit and cash flow. I will test your beliefs and your business practices and show you a better way. My goal is your success and together we can transform your business. There’s more good news. If you are in a place where you are thinking that things have to change but are still not certain, then I’m willing to give you some of my time to discuss what might be some options for you. Of course you might be thinking … “I’m not sure I have the time for this” or “Geez how much is this going to cost?” or “Who is this Rodney Hough guy anyway” or “Does this stuff actually work” or “What I really need is someone to come in here and do it for me” or “Maybe we can live on toasted cheese sandwiches a little longer” If any of those thoughts are running through your mind – know you are not alone. My goal in connecting with you will be purely exploratory. You will have the opportunity to learn more about me and for me to learn more about you. After an initial chat (do you have 10-15 minutes?) you can decide if you want to pursue things further. I look forward to meeting and learning more, about you and your business. Great job and I look forward to connecting with you, Rodney Coach Rodney