Growing a business is more than a labor of love. It requires dedication, compassion, and frustration amongst other things. There will always be trials and errors as you figure out your cash rhythms. Cash rhythms will always change as the market changes. You cannot always control your circumstances, but you can start planning ahead to have extra cash on hand for those times.
- Have a sale or special promotion…
Sales are not just for the big-box stores, Wal-Mart, Home Depot, etc. Consider how you can feature a special promotion for your business. If you go to a business showcase with Coffee and Connections, then you could consider making a special coupon for the visitors.
Offering a discount on significant purchases or adding a bonus will incentivize your clients to hire you now. This will drive more sales and reduce your time sitting and waiting to hear from your clients. Of course, you need to do this in moderation. You still have overhead expenses as well as other expenses for your business to cover. This is just a short term opportunity to jump start your growth.
Rembember- You can also email or text your clients to let them know about this special promotion and always remember to add a deadline to your offers. The deadline is key to getting your clients to take action now, not later.
- Raise your prices, but first do this…
Do not announce this quietly. Inform your current and past clients of the new price changes. Tell them when they are going up and why. Make sure that while you are doing this that you give them a chance to renew their contracts or to stock up and save before the prices go up.
Don’t forget to check out what your competitors are charging so you will have a better idea of what your markup should be. You want to be competitive, not price yourself out of business.
- Borrow for tomorrow…
This is the hardest part of any business. Knowing you want to grow, but your funds are limited. We get that, we’ve all been there. Only use debt as a tool to help you with your business when it makes sense. You can talk to a local banker at Guaranty Bank in Longmont, Colorado. They have a staff that is dedicated to you and your small business. Talk to them about getting a small business loan, consider if it’s the right time for you to take that on, to help you through a rough spot.
Also be aware that there are small business grants available. They are rare, but they do exist. You can check with your local economic development committee. There are other companies like Chase who has had Mission Main Street Grants in the past. They awarded grants of $250,000 each to 12 small businesses across the country. A small business owner could use it to grow the business by hiring new staff, purchasing larger orders of inventory and more. So take some time and do your homework. Figure out what’s available to you and get the help you need. Don’t struggle and put yourself in a tight spot. Your business is important to our community.
- Move from one-shot services to packages…
One-Shot… What’s that? It is simply providing one service at a time. Rather than being the handyman that comes and fixes the window or door knob, you could put together packages to help your clients. You know they’re going to want that door knob fixed, but what about adding a few other little things to go with it. You could offer to change a filter, fix a leak, re-caulk windows, etc.
- Sell or lease unused assets…
Let’s face it. We all have stuff around our office or in our shop that is not being used. Look around and see what is not used regularly. Do you have excess materials, inventory, equipment, etc? It is time to unload that tool you only used twice this year? Don’t forget to discount personal items as well. (Old boats and skis may be lying around.) If you have extra office space, consider subletting it to someone who could use the work space. If you have a prime location on Main Street, then you could also consider letting others set up a virtual office at your location and collect a monthly fee from them.
Before you sublet your space, make sure you talk to an attorney to set up a contract to protect you and the person you are considering. Contracts are vital to every business because they limit your liabilities.
Lightening your financial load and clearing out the clutter can help you improve your cash flow when you need it the most. Sometimes doing this can help you feel refreshed and ready to take on the world. When you sleep through the night, you’ll be able to focus more on growing your business…
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