Tuesday, March 16, 2010

Fix the Cash Flow Dilemma

One of the toughest things when selling your expertise is managing the need for immediate cash flow. Here are some cash flow habits you can develop to clean up your bank balance.

Ask for deposits

One way to shorten the cash cycle is to request deposits. Standard amounts range from 20-50%.

Focus on now

Often the products and services you create have income that kicks in some time down the time line. Move some forward by creating a segment of your service mix that is quick and easy to buy and to provide. A business coach may offer a business plan off the back end of their fact find service.

Stop giving it away

Many thought leaders are giving away value now in the hope of making a bigger sale later. Don't. Charge for it now and people then get a chance to see your work ethic and value in a small digestible chunk.

Manage your price points

Create a spread of services that span the full price spectrum. Have some $100 dollar, $1000 dollar, $10,000 dollar, $100,000 dollar products and while you're at it, create a $1,000,000 product. Businesses get comfortable managing certain price points. Get out of your comfort zone and re-price what you do.

Switch markets

Markets are like fishing spots. Sometimes by changing your activity location for a while you get a fresh catch. If you are selling to corporates, create a quick cash flow product that works for small businesses. If you sell to individuals then create something you can do for companies.

So there it is, 5 quick ideas to help you change your cash flow habits.

A final word is to get your head around the value of your expertise. Once you value what you do others will pay for it.


1 comment:

  1. Another short in reading time but huge in value post, thanks Matt