Do you ever wonder why you seem to be busy and doing good business, but the money doesn’t seem to be in your bank account? Sometimes the fact is that money is hiding in your business.
Here are four places money may be hiding, and how to get it:
Someone should be responsible for maintaining an outstanding Accounts Receivable balance of less than 1-2% at all times. It makes no sense to leave this money out there in the ethers, especially if you need it to pay your bills, especially the bills you’re accruing interest on! Print the AR list weekly and follow up until all money is collected. OR you can require prepayment, or a deposit on invoices going forward.
When you pay down debt, it only shows on your balance sheet, not your income statement. Only the interest portion will show up on the income statement. So if you’re only looking at your income statements you may feel that it will not match your bank account because of the payments that don’t show on the income statement.
Do More Follow-ups
SO MUCH MONEY is hiding out in your follow-up process (if you even have one). Often it requires multiple follow-up contacts with a prospective client before they say yes.
How many times are you following up? Follow up is a service, not an annoyance. People are very busy and often appreciate being reminded of what you have to offer. Your competitive advantage could simply be the fact that you follow up! So many of your competitors do not understand this! Capitalize on it!
Watch Your Profit Margins
Sometimes, without knowing, you are selling a large volume of a low-margin product. You must calculate and analyze the different gross profit margins on all of your products and services. Then, sell MORE of the higher-margin products/services, and if possible, increase price (or decrease cost) on the lower margin ones. This makes a huge difference, especially over time.
I hope I’ve inspired you to go find some more money in your business this week!
If you need more help finding money hiding in your business, contact TMH Business Coaching and Consulting today for a confidential, free, no-obligation consultation to propel you forward. Also, please feel free to add yourself to our weekly coaching tips email!