Cash Flow Management Tips For Service-Based Small Business Owners

How often do you notice a negative figure when you compare the money going out and the money coming in to your business?

How often do you have an excess of money at the end of the month?

Do you ever wonder how you’re going to pay your bills or yourself?

What do you avoid or postpone as a result of this?

One of the most common issues I find with women (and men) who run small service-based businesses, especially when you are the sole provider of your service as the owner and business leader… is ensuring steady cash flow.

So you don’t have peaks of cash flowing in when delivering/earning and troughs of cash ending when service delivery concludes.

This is a loop that many business owners (even seasoned practitioners) fall into.

To cope with this, first recognize it as a (possible) problem, then manage your cash flow rather than allowing it to manage you!

You can accomplish this by lowering your costs, or the amount of money that flows out.

However, my focus here is on how to grow your business, i.e. increase the amount of money coming in.

Here are my top tips for managing your cash flow by boosting the amount of money coming in.

Tip #1 for Cash Flow Management

Increase the number of sales conversations.

Don’t devote so much effort to ‘delivering’ that you cease engaging with your prospects.

Make time and plan for it to chat to them and listen to what they desire.

Tip #2 for Cash Flow Management

Create bundles with varying price points.

If you typically provide a fixed service, consider how and what you may offer differently.

Can you offer some common knowledge and information in a new medium, such as a written, audio, or video product?

What about a customizable package of products and/or services?

Or even a retainer package?

The options are limitless.

Simply meet people where they are and give them what they want in accessible ways.

As a result, make more packages.

Tip #3 for Cash Flow Management

Offers should be made on a frequent basis.

When engaging with prospects and having sales interactions, make them an offer.

Do not be tempted to ‘think about it and get back to them’; instead, give them an offer right now.

If you don’t, you’re not having a sales conversation!

And, while there may be times when making an offer is inappropriate, this should be the exception rather than the rule; otherwise, I’d suggest you’re not clear enough on who your ideal client is and how to attract them.

All of your prospects should be perfect clients in the making!

It’s critical to execute these three things on a continuous basis, to have a system and a method of efficiently arranging your time so you’re not spending weeks or potentially months focused solely on service delivery, then in slow periods, solely on sales and marketing.

That’s how inconsistency and negative cash flow develop.

That is why the adage “turnover is vanity, cash flow is king” applies.

And it’s true because if you can do this, you’ll have a business that serves both you and your clients.

A business that allows you to plan, develop, and build yourself and your business while not worrying about money.

So keep in mind that you’re in business to service your clientele in a way that benefits both of you and makes you money.

Although money may not be your strongest motivator, you cannot manage a business without it.

And the simplest method to make money is to always have more money coming in than going out!

So, to boost the cash flow in your firm, have more sales discussions, build bundles at multiple price points, and make regular offers.

Consider the impact something will have, and then go do it!

I’d love to know how things go for you…

Julie Johnson, Author, Speaker, and Leading Success Coach, educates women all over the world how to be successful and happy in business and in life.