What to do (and not do) when cash flow is tight
When cash flow is tight, what should you do?
Firstly, we’ve all been there in our businesses at some point haven’t we?! I know I have, times when I’ve been gripped by fear that the money isn’t flowing in.
This is often when limiting beliefs and old stories also rear their ugly head, and the voices in your head go into overdrive. Unfortunately, fear and operating from a place of lack is when you won’t make the right or best decisions for you and your business.
You may begin to doubt your abilities, start tinkering with your pricing, and grab at any opportunity. This will most likely result in you working with clients who are not a perfect match, and boom, you are right back in the place you’ve worked so hard to move away from.
So, what would my first piece of advice be…?
DON’T PANIC. When you go into panic mode, as mentioned above, you’ll start making decisions that aren’t right for the business. These decisions I like to call the ‘band-aid solutions’, the quick fixes, are all because you’ve lost sight of the big picture or vision.
If you’re already a follower of mine, you’ll know that I often talk about the pin in the map, the future destination, and this is what should guide you. Sadly, you’re not able to do this when gripped with fear and focusing on band-aid solutions because these are not created with the end in mind.
This can result in you cutting or drawing back, becoming constricted in your actions and thinking. You might even pull back or stop investing in marketing and training to reduce outgoings, the very things that are integral to the long-term growth of your business. So, don’t panic!
But HOW you might be yelling.
When you find yourself going into panic mode try changing your mindset by taking the time to make a list of all the things you’ve achieved. The successes and wins that you’ve seen and experienced in your business – no matter how big or small. This is an excellent way of getting you past that place of lack.
Another way of keeping panic at bay and taking back control is to look at the slower times in your business as a gift of time. Opportunity to look at and work on the areas of your business that need your attention.
By shifting your mindset from lack and moving away from fear, you open yourself up to seeing creative and better solutions—those that come with the end destination and vision in mind and not from sheer panic. This results in the doors of opportunity unlocking, and you allow the money to start flowing again.
Below are some practical ways to grow your business when cash flow feels sticky.
Pick up the phone!
Have you had conversations with potential clients recently? Pick up the phone, check in with them, and ask them if they’ve found a solution to their challenge! Are you part of a networking community? Pick up the phone and ask for referrals. What about past clients? Again, pick up the phone and ask how they are doing since you last spoke. Don’t be afraid of saying ‘you’ve capacity right now and looking for awesome five-star clients to work with’.
Commit to networking (if you haven’t already)
Dipping in and out of networking isn’t enough, the key is building relationships using the KNOW-LIKE-TRUST method. With this in mind, networking should be an ongoing commitment and not just something you do out of panic. It’s also a place of community and support and I’m a huge advocate of networking for these reasons alone. It’s where you’ll find help and most likely learn that you are not alone with the challenges you face – which in itself can be reassuring and give you confidence.
Review your marketing.
If you’ve noticed that something worked well for you in the past – do it again. If something isn’t quite working for you, fix it and make sure there aren’t holes in your marketing where sales are being left on the table. Review your marketing and all process and systems regularly and remember to work out your capacity for new clients, as it’s no good having a plan to attract ten when you only have space for two.
Be pro-active and not reactive.
Knowing the numbers in your business can really help with this. Allowing you to see where dips in cash flow are likely to be, meaning you’re always thinking forward and ahead of the game. You can then avoid the need for kneejerk reactions and band-aid fixes, putting yourself firmly in control and leading your business (as opposed to it leading you!).
If you are feeling overwhelmed and need help gaining clarity to move your business forward, book a Clarity Coaching Call. It’s FREE, and you can do that here.