5 Mistakes to Avoid to Get Out of the Cash-flow Crunch
Fact: Massive success is not just about profits and a groundbreaking business model, but there is a proven formula that I have been practicing and refining over the past 30 years. To make the big shift from entrepreneur to 7-figure enterprise, you need a roadmap. And, this is why I developed my S.C.A.L.E. Formula® that I have used to build many of my companies and in coaching thousands of business owners.
Hi, it’s Allison. I am a 10-time entrepreneur, and I want to give you the roadmap to S.C.A.L.E. To reach your pinnacle and elevate toward 7-figure enterprise success, you need to learn to scale. Scaling basically means replicating your impact and talents beyond yourself, so that you can reach a much larger market and expand your revenue. Let’s take the next step by increasing cash flow, so you can reinvest in the growth of your business. Here are my mistakes to avoid to get out of the cash-flow crunch.
The 5 Elements of my S.C.A.L.E Formula® are: 1. Strategic Vision 2. Cash flow 3. Alliance of your team 4. Leadership and 5. Executing Your Plan. In this post, I cover part 2, increasing cash flow, or what I call, avoiding The Cash-Flow Crunch.
The Big Shift
The S.C.A.L.E Formula® starts and ends with a big shift from entrepreneur to 7-figure enterprise. My roadmap is laid out in front of you, but you need the cash flow to make it happen. It’s time increase cash flow and open the doors to massive success! And, there is a way to turn every problem into a simple solution when it comes to getting out of the cash-flow crunch.
When it comes to Increasing Cash Flow,
Set Expectations and Manage those Expectations.
To open the flood gates to cash flow success, start with the basics. Set objective and realistic expectations for cash flow, from start to finish, from January 1 to December 31. Manage your expectations of cash flow, from influx to outflow, from zero account balance to a cushion of cash. And, it starts with 5 mistakes to avoid to get out of the cash-flow crunch.
5 Mistakes to Avoid to Get Out of the Cash-flow Crunch
The S.C.A.L.E Formula® – Step #2: Increase Cash-flow. Just like the thousands of entrepreneurs that I have worked with, you need to get out of the cash-flow crunch. The massive success that I am taking about requires cash flow to reinvest in the growth of your business. Here are 5 mistakes to avoid to get out of the cash-flow crunch.
- Do NOT Overestimate.
Get real. In order to make the big shift, take a healthy dose of reality. Entrepreneurship goes hand-in-hand with perpetual optimism. How else take all of the obstacles in stride? But, when it’s time to scale to that next level, get out of the cash-flow crunch and do not overestimate future revenue.
Problem: You cannot up-level if you cannot project realistic sales forecasts. Be realistic with yourself, and the cash will not run out. Do not compromise objectivity when it comes to cash flow. My S.C.A.L.E. Formula is all about increasing cash flow, but first you need to avoid overestimating cash flow.
Solution: Forecast sales based on objective evidence and real data. In this case, objective evidence would be actual data from other businesses in your industry, and real data would be actual numbers from your business’ past revenue. Put it all together and you will be able navigate towards the big shift from entrepreneur to 7-figure enterprise, from pipe dreams to real results.
- Do NOT say “YES” to Impulse Spending.
Not all businesses were created equal. Impulse spending is not the answer to successful growth. In fact, to scale your business requires you to increase cash flow not spending. Get out of the cash-flow crunch by saying “no” to impulse spending.
Problem: Do not fall into the trap of chalking it up to “it takes money to make money.” In many ways that motto may be true, but gross overspending does not add up to massive results and exponential success. Avoid buyer’s remorse all-together, and measure spending against the benefits to your business.
Solution: With objective and realistic sales forecasting, you now know your break even. If your goal is measurable results, then you have to compare every expense to that bottom line. What is the cost benefit? Every dollar that you spend is a dollar less in your profit margin. How does that decision measure up? Let these answers be your guide.
- Do NOT ignore Past-Dues.
One of the biggest killers of cash flow, if not the biggest, are past-dues. Do not make the mistake of ignoring a lack of cash flow. In fact, it is the most dangerous mistake to avoid, in order to get out of the cash-flow crunch.
Problem: If late payments are racking up, then you have a problem. As an entrepreneur and business owner, you understand the consequences of late payments. You see it within your own business, but do your clients see it? If you do not have system in place, then you are being passive and allowing clients taking advantage. Without set expectations, there are no rules when it comes to cash flow.
Solution: Set expectations, and make the expectation clear. It’s time to put in place late payment penalties and collection policies. Good example: 5% late payment fee after 5 days and a hold on all work after 30 days. Create a timeline from the initial invoice through to a work-stop order on an account. Set clear expectations for your clients and for yourself, and get out of the cash-flow crunch!
- Do Not say “NO” to a Cash-flow Budget.
Have you addressed mistakes 1 to 3? You have already experienced a breakthrough! If you forecast sales, weigh costs to benefits and rein in past-dues, then you are well on your way to increasing cash flow. And, right now you are on track to get out of the cash-flow crunch.
Problem: How do you increase cash flow from the day-to-day to month-to-month? Every business fluctuates in terms of sales and cash flow. You will not have the money when you need it, if you do not plan. When you need it, is when you should have it. Do not leave your business to chance. Growth is not a guessing game, especially when it has to do with increasing cash flow.
Solution: Track cash flow on a daily basis, and create a cash-flow budget. A cash-flow budget will allow you to track the influx of business compared to the outflow of expense, or influx of cash to outflow of cash. Break it down, analyze and plan! Making the big shift from entrepreneur to 7-figure enterprise requires a cash flow that you can depend on.
- Do NOT forget – Cash is King
It doesn’t matter if you do it all. All the safety nets in the world will prevent reality from knocking on your door. There will hiccups in cash flow – it’s inevitable. And, at the end of the day, cash is king. Do not make the mistake of not having cash on hand.
Figure out how to safeguard enough cash for 2 months of operating costs. If cash flow becomes an issue, then the danger is not the threat of closing up shop. Create the future and the success that you desire. Make the shift from zero account balance to a cash-flow cushion, and get out of the cash-flow crunch. It’s possible if you take the next step!
Take the Next Step
There is no one-size-fits-all solution, but there is a proven formula to scale your business. And, the roadmap to get there is my S.C.A.L.E. formula. Discover the benefits of increasing cash flow. Bottom line: Getting out of the cash-flow crunch will transform your business!
Making the big shift from entrepreneur to 7-figure enterprise requires a breakthrough. Step into the inner circle with me! And, the next step is increasing your cash flow, so you can reinvest in the growth of your business. At the end of the road awaits a CEO success network full of influencers, movers and shakers, and valuable connections that have all followed this exact roadmap. It’s time to experience your next breakthrough!
The Big Shift: The CEO Success Network
As you begin to scale your business, you are shifting from entrepreneur to leader, building a strong company culture and loyal customer following that cannot help but refer you to all their friends. You face the challenges of letting some people go that cannot grow with you, while taking bigger risks than ever before. You find yourself getting better at making unpopular decisions. Yet, you are ready to inspire your team with something beyond money and profit.
If you can relate, there’s a place for you. The CEO Success Network Retreat. This very exclusive 3-Day ‘think-tank’ and powerful training on the beach in Coronado, CA on August 12-14th. This is for advanced business owners that are ready to scale. Join leaders of the country’s most dynamic businesses for a rare chance to build strategic relationships, formulate real growth and walk away inspired…with a plan. www.ceosuccessnetwork.com
Allison Maslan
Allison Maslan is a serial entrepreneur of 10 of her own companies. She is a No. 1 Bestselling Author and CEO of Allison Maslan International where she mentors big thinking entrepreneurs to grow high-revenue businesses and healthy and passionate lives in her year long mastermind program, The Pinnacle. She also has the hit online show, The Allie & You Business and Lifestyle Success Show on iTunes. Get access to her latest show here. Allison has been an expert guest on ABC, CBS, NBC and Fox Stations across the US and was featured in Success Magazine. Grab a copy of her FREE CD, 8 Millionaire Secrets of Successful Entrepreneurs HERE. For more information about our business coaching and mentoring services, call us! 888-844-3550.