Entrepreneurs: Fighting For Financial Freedom In Tight Times
For many entrepreneurs, the most pressing issue in the current market is maintaining healthy cash flow levels for their business. Only by ensuring strong cash flows can one hope to keep the doors open to avoid having to go back to work for someone else.
The battle for steady cash flows is the true fight for freedom for the modern entrepreneur. How can one be sure to come out on the winning side of the fight?
The first step is to find a way to build up a business reserve fund. Designate this money as a lean times fund, and make contributing to this a regular part of the business budget. Having a reserve fund can help cover critical expenses in the event of a downturn, client cancellation, or unexpected illness.
The second step is to enhance back end sales relationships. Since it costs more to acquire new customers than it does to service existing customers, a set of back end products can stabilize income levels while simultaneously improving profitability. Accessories, informational products, or even updated versions of front end products are all worthy back end catalogue members.
A final step is establishing limits for discounts. What can be offered promotionally to gin up business, and what is sacrosanct? Answering this question can bring clarity on what promotions are permissible and what areas just don’t have pricing flexibility. This helps manage profitability and ensures that no unintentional undercutting of cash flow through discounts occurs.
For entrepreneurs, keeping good cash flows is critical to winning the fight for freedom, even in tight economic times. By building up a business reserve fund, creating a strong back end catalogue, and critically examining pricing flexibility, it is possible to ensure ending up on the right side of the battle line and staying in business.
Comments are closed.