Not too long ago I posted on LinkedIn the outcome of a quick campaign the team pulled together for one of our beloved retail clients who was facing the extremely uncertain climate that COVID-19 has posed for many business owners.
In the early days of my business I never really paid much attention to the cash-flow of the business, it would take me 6 years and some hard lessons including and a short stint being homeless on my mothers couch to learn that cash-flow was core to business success.
An extra four thousand dollars a month sounds wonderful for many business owners and for some might sound like more than you’ve ever brought through the door. Here are 5 things to review to turn your negative cash-flow into a positive one.
Hard and fast way to review your subscriptions is to cancel your credit card and see which ones shout at your email for non-payment, most software solutions have a few days up to 30 days leniency especially with an increase in scams occurring online. I’ve often saved up to $6000 a year in reviewing my software subscriptions. I’ll keep the ones that save me time or make me money. I ditch the ones I haven’t logged into for three months immediately. I review the rest.
The motto in my business and often with some of my industry partners is “Is it a Ming job?” The delegation has been one of my hardest things to get a hold of, not because I don’t think someone else can’t do a better a job (time and again team members have more than proven their capability) it’s just been my default for such a long time to ‘do the thing’ instead of delegate the thing. The reality check often comes with the value of my time. Usually my time worth comes in currently at $180/hour – $300/hour that I can generate for the business but so often I’m caught up in a task that would literally cost me $10 – $20 to resolve if I only delegated to team member who might do it more efficiently than I would. More often it is a battle with my lizard brain telling me that ONLY I CAN DO THE THING. #RealTalk this is a bullshit lie I tell myself to feel significant in my own business.
It’s a tough one, how much are you worth vs how much can the marketplace afford, not to mention in the middle of a pandemic! I think the measurement for this has always come back to what is the price I want to earn that will mean I resent my customers less and where they value what I’m giving them, or value what I’m giving them and KNOW that they’re getting a good deal, not because I’m a pushover, but because I give a good deal. There were a few strategies I implemented on this one. The first was to delegate my invoicing to someone else. (Look at me nailing #2 already! Pats on the back.)
After numerous boot camps on money, stress about finances, it dawned on me, I hated asking people for money, no problems telling them how much we were, no issues in even closing the deal, those things were super easy, barely an inconvenience. What I wasn’t great at was sending invoices and do it regularly or even following upon them. So I delegated to someone who was really good at it and had zero emotional baggage around it. While I tasked this out to someone else I also worked on my money beliefs so that I could get a handle on running my team, having profit in my account and manage my finances without all the emotional baggage around money that I had going on. Highly recommend Profit First by Mike Michalowicz that completely transformed my businesses finances.
Advertising Spend vs Return On Investment
A couple of years ago I wrote a piece on LinkedIn titled ‘Death to the 100k Marketing Agency‘ in there I quoted a line from a phone call I had that week which went something along the lines of: “We’ve had 20 hits on our website over the last year from the marketing efforts of our marketing company. Only 2 converted. Which means each lead cost us $50k.” This was a real and disturbing conversation… but sadly not surprising, the reality is many agencies (not all, but definitely a lot of them) would take advantage of the fact that their clients often didn’t understand the magic black box of Internet marketing, they depended on the fact that their clients would never read their reports, or look under the hood. Worse still there are often clients who are hitting boost on Facebook and while they get a bit of engagement quite often they get zero conversion. The aim of the advertising game is conversion. For every dollar you spend you aim to at the very least break even. If you’re not breaking even, or making money from your ad spend you might need to revisit your campaign outcomes.
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