skymark
Lisamarie
I was doing a consultation today with a one man band business and the theme of the day was trying not to lose money. The theme was still on my mind so I thought I would start a thread here as it may be helpful to those completely new to business in all its forms.
During periods where people are starting up, building a clientele or going through a dip in business, keeping cashflow coming into your business and using it to its full potential is crutial.
'Not Losing' money is not the same as not spending money.
Money needs to be spent on product and quality cannot be compromised during lean times. Doing so is the best way to have your business run into the ground very quickly.
But a lot of potential cashflow is either not collected or is being given away in small amounts here and there. Over time, all this adds up to a pretty big loss of potential cashflow and along the line, potential profit.
I have listed just a few little ways that came to mind in this industry, particularly for those who work alone, where these little things can be highlighted.
> Throwing away cashflow by not charging enough for your services. If your work is worth a price and clients are happy to pay, charging any less is a cash gift to your clients.
> Not taking advantage of your travel arrangements for mobile therapists. Trying to schedule appointments that are nearby at similar times cuts down on back and forth costs. If a client asks when you are free, your first available time should be offered at a time when you will be in the clients area. If they cant do that fair enough, but sometimes you can pull it off.
> Spending on product that will sit and expire. Many people get a little heavy with bulk buying product. Its only a good idea if its going to move fairly fast. Otherwise it is a pile of pound coins sitting on your shelf that you cant get back.
> Get into the habit of using refills where possible. If you use lots of hand sanitiser pumps for example by buying a new pump everytime is costing extra pennies when refills are available. Yes its a little more hassle and its not a shiny new bottle, but Id rather have a refilled bottle and an extra quid in my pocket.
> Buying too much stock. Its nice to stock one of every scent, texture and type of product for services and retail but unless you are going to be able to move all the product, it is sitting not earning its keep.
> Throwing money away on bank charges. If they charge per deposit at your business bank, dont deposit small amounts. Same with writing checks. Use your business debit card where possible to slim the charges.
> Repeating advertising techniques that did not work the first time. Get creative and try something new. If that $30 leaflet drop didnt work the first time, is another $30 a good idea just now? When money is tight get creative.
> If you tend to be an impulse overspender at the wholesalers, go the route of your granny and take cash only with you. You know how much the things you need will cost. A little extra for anything you forget and thats it. So much money is lost by the ease of a debit or credit card.
Sorry its a little long, feel free to add your ideas. The theme of thread was to 'not lose money' not necessarily to reduce spending.
During periods where people are starting up, building a clientele or going through a dip in business, keeping cashflow coming into your business and using it to its full potential is crutial.
'Not Losing' money is not the same as not spending money.
Money needs to be spent on product and quality cannot be compromised during lean times. Doing so is the best way to have your business run into the ground very quickly.
But a lot of potential cashflow is either not collected or is being given away in small amounts here and there. Over time, all this adds up to a pretty big loss of potential cashflow and along the line, potential profit.
I have listed just a few little ways that came to mind in this industry, particularly for those who work alone, where these little things can be highlighted.
> Throwing away cashflow by not charging enough for your services. If your work is worth a price and clients are happy to pay, charging any less is a cash gift to your clients.
> Not taking advantage of your travel arrangements for mobile therapists. Trying to schedule appointments that are nearby at similar times cuts down on back and forth costs. If a client asks when you are free, your first available time should be offered at a time when you will be in the clients area. If they cant do that fair enough, but sometimes you can pull it off.
> Spending on product that will sit and expire. Many people get a little heavy with bulk buying product. Its only a good idea if its going to move fairly fast. Otherwise it is a pile of pound coins sitting on your shelf that you cant get back.
> Get into the habit of using refills where possible. If you use lots of hand sanitiser pumps for example by buying a new pump everytime is costing extra pennies when refills are available. Yes its a little more hassle and its not a shiny new bottle, but Id rather have a refilled bottle and an extra quid in my pocket.
> Buying too much stock. Its nice to stock one of every scent, texture and type of product for services and retail but unless you are going to be able to move all the product, it is sitting not earning its keep.
> Throwing money away on bank charges. If they charge per deposit at your business bank, dont deposit small amounts. Same with writing checks. Use your business debit card where possible to slim the charges.
> Repeating advertising techniques that did not work the first time. Get creative and try something new. If that $30 leaflet drop didnt work the first time, is another $30 a good idea just now? When money is tight get creative.
> If you tend to be an impulse overspender at the wholesalers, go the route of your granny and take cash only with you. You know how much the things you need will cost. A little extra for anything you forget and thats it. So much money is lost by the ease of a debit or credit card.
Sorry its a little long, feel free to add your ideas. The theme of thread was to 'not lose money' not necessarily to reduce spending.
x
