When was the last time you took a step back and asked yourself, “Is there a better way to really grow my practice?” "Is the path I'm on leading me in the direction I want to go long-term?"

There are dozens of “quick fix” tactics competing for your time and attention, but will any of them drive your practice to the next level? Will any of them provide the work/life satisfaction you're looking for? Probably not, and here’s why:

They don’t address the root cause of job dissatisfaction or anemic growth.

While you’re trying to figure out your best social media channel, how to get found on the Internet, or the best way to get a promotion, you should be looking at:

• Product or service changes to penetrate new markets and sell more to your current customers
• Strategic growth initiatives such as going up-market or down-market, geographic expansion
• Strategic demand-generation marketing initiatives such as public relations and branding - especially if...

I've worked with people who get a credit line or a working capital loan, and have no idea of what happened to it.

They are unhappy and upset that they took the loan, and feel like they made a mistake. They did make a mistake, but it is not taking the loan. The mistake is spending the funds without understanding where or why, instead of using the funds for targeted expenses.

In the past, I have talked about how to plan to use loan funds that are coming in from PPP, EIDL, or commercial financing sources. Here are the basics:

1. Use a separate account for loan funds to ensure they are used for the planned purpose
2. Use a 13-week cash flow model to plan the use and the repayment
3. When you can, put excess funds back into the loan account so you don't just spend the "extra"

If you want, subscribe to my YouTube channel to make it easy to find all of my videos, including a webinar where I discuss this very issue.

Question: What do you think the biggest challenge will be for companies...

What's the one thing that business owners never talk about when I ask them to tell me about their business?

Cash management.

I don’t blame them. They didn’t start their business to manage cash. They started their business to do something they really enjoy and get paid for it – like create websites, sell real estate, practice law, do collision repair, or any of a million things that people enjoy doing to make money.

When I start working with a business that has a cash crunch and may not survive, I first work with the business owner’s mindset.

I help them understand that while managing their cash isn’t what they want to do, it will keep their business alive so they can do what they love to do. It allows them to spend more time and energy on what they love, but only after their cash management systems are in place.

Check out my article about 5 Key Mindsets.

Want to talk about managing cash in your business?

Then tell me, what's your biggest cash management...

The quality of your team can have a HUGE impact on your cash flow. You are much better off paying ABOVE market wages and benefits to a smaller number of "A" and "B" players than trying to save some money hiring average people at lower wages.

Here are two examples:
 

• A manager at a bridal shop who ran all sales and marketing. She was not paid in line with the results, asked for more, was told "no", so she left. When the store owner realized how much work was being done, a sales manager and a marketing manager were hired. The sales manager wasn't up to the job and quit after a few months.
   
• We reorganized a division that was losing a LOT of money. We laid off 50% of the workforce that did not have the skills or attitude that was needed. We rehired back 25% of the headcount with people with the right skills. We needed to pay much more per person and saved very little on compensation. The smaller team produced much better results and we were profitable within 1 year. 

...

On this episode of Fortnight Cash Flow, David talks with DryRun's Jeremy Burke discussing simple cash flow optimization techniques that you can implement in your own business. 

The quality of your team can have a HUGE impact on your cash flow. You are much better off paying ABOVE market wages and benefits to a smaller number of "A" and "B" players than trying to save some money hiring average people at lower wages.

Here are two examples:
- A manager at a bridal shop who ran all sales and marketing. She was not paid in line with the results, asked for more, was told "no", so she left. When the store owner realized how much work was being done, a sales manager and a marketing manager were hired. The sales manager wasn't up to the job and quit after a few months.

- We reorganized a division that was losing a LOT of money. We laid off 50% of the workforce that did not have the skills or attitude that was needed. We rehired back 25% of the headcount with people with the right skills. We needed to pay much more per person, and saved very little on compensation. The smaller team produced much better results and we were profitable within 1 year.

People think that this...

“Automation applied to an inefficient operation will magnify the inefficiency.” 

- Bill Gates

I am constantly asked, "What software do you use to implement cash flow management?"

My answer: "I start with an Excel model."

Usually, people are surprised and even disappointed. They want to believe that there is a "silver bullet" that magically picks up their accounting data and will automatically tell them how to improve their cash flow.

It just doesn't work that way.

Why? Because....

Most companies have a very inefficient operation when it comes to managing their cash flow.

Building out an Excel model becomes a conversation about how all the pieces of cash moving into and out of the company fall into place.

After you understand the movement then you can automate the model.

Do you use automation in your business? I'd love to know how, and if it took some time to make it efficient.

Let me know in the comments below!

Follow this link to listen to the episode on Apple Podcasts.

I had a great time on The Courage to Lead with Harlan Hammack discussing cash flow optimization (including some counterintuitive tactics), planning for the future, explanation of some of my offers here on the website, and more. 

I also got to share a bit more of my own story of how I came to be involved in cash flow advising. It was not an easy decision, but it was a logical one.

Coach Harlan was a great host - big thanks to him!

Follow this link to listen to the episode on Apple Podcasts.

Follow this link to listen to the episode on Apple Podcasts.

I had a great time on the Dynamic Mapping podcast with Jeff Mount last week discussing diverse areas of financial advising, common mistakes small businesses make, accrual vs. cash-basis accounting, and more.

I also got to share a bit more of my own story of how I came to be involved in cash flow advising.

Jeff was a great host - big thanks to him! 

Follow this link to listen to the episode on Apple Podcasts.

Did you learn anything new? Did I miss anything? Let me know in the comments!

A few weeks ago I broadcast this information about how to increase sales and profits without increasing volume of any kind. 

Listen in to hear about a specific case study where I made this happen for my client.

If you want to learn more and talk with me, follow this Calendly link to sign up for a brief introductory meeting. The webinar I mentioned in the broadcast will have passed, but I am always available for a chat.

How have you managed your business when money gets tight? Let me know in the comments!