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:
What do you think? A new connection asked me if he could get to where I am without my educational background (he has a professional certificate and additional professional training, but no 4-year degree.) I first commented that I wasn't sure that he knew where I was, nor where he wanted to go.
Then I said, "Yes, you can get to where you want to be." My concern is that he is not sure where he wants to go.
I get the same type of questions from clients:
"Will I ever have money in the bank?"
"Can I ever stop having huge cash swings?"
"Does my business have a chance to get to the big leagues?"
The answer is always, "Yes, you can get to where you want to be." Then we have two discussions:
1. Where do they want to be?
2. How can they get there?
So what do you think, can people get to wherever they want to go? Can companies always have the success the owner wants?
E-mail me your comments at [email protected]
The COVID-19 global pandemic is a wake-up call to ALL business owners to take responsibility for their company finances.
I posted that financial advisors are responsible for the companies they work with to have good financial plans, including a 13-week cash flow model. Now, I am putting the responsibility 100% onto business owners. There are no more excuses.
For too long business owners have said...
"It's not about the money, it's about the people."
"I do it for the love of my craft."
"Someone else can deal with the finances."
"I want to be my own boss, but so I decide that I only want basic bookkeeping."
Now a tiny virus has told you that you are wrong.
You are in business. Business is about the numbers.
Not only numbers, but if you don't have money, you can't...
...work your craft
...let someone else worry
...be your own boss
If you survive this downturn, fix your finances.
Start with a cash flow model that tells you how long you can survive. (Put "Cashflow" in the comments if you...
No money to pay your bills? Don't borrow money, just don't pay your bills.
You have to pay them at some point, but there are tactics to slow down money flowing out of your bank account.
But FIRST... here are some bills you need to pay on time:
Anything that puts you in breach of contract and puts your business, your home, or your health at risk.
Other than that, most bills can be postponed past the due date without dire consequences.
Look at bills that you owe large corporations, who are used to delays. Telephone, internet, utilities, insurance companies. You may be able to wait up to 60 days without consequences. Let them know when you'll be paying.
Suppliers: Make sure that you talk with them. Make payment arrangements. Don't surprise them. Make a partial payment. Many times your relationship is more important than delaying payment.
Mortgages and rent: Most have a no-penalty grace period. Use it when you need to.
Please, be careful with solo-entrepreneurs and...
Why don't employers see the huge CASH cost of losing their best people, and give them what they need to stay?
Employers spend a lot of extra money when they lose their best people. Here are some of the incremental hard costs:
- Training costs for a new person
- Recruiting costs
Even bigger are the "hidden" costs:
- Employer's time to recruit
- Lost productivity
- Emotional cost to the team
What would it take to keep the best people?
1. Ask them. They'll tell you.
2. Some money. Less than replacing them.
3. Recognition. Get creative and see #2.
4. Bonus idea: Reward them with something that benefits their significant other and/or family.
Back to the cold hard cash facts. Studies show it costs you 33% of someone's annual salary to replace them. You can keep people for a lot less.
Am I right? Wrong? What's your experience?
Let me know in the comments below.
#wtcfg #humanresources #finance
If you are interested in learning more about cash flow management, then you should follow Barb Easter, Blaine Bertsch, and Jeremy (JD) Burke from Dryrun - Cash Flow Management Software. These hyperlinks will take you to their LinkedIn pages.
Why would I recommend you follow someone else and not spend all of your cash flow time on my posts and articles?
A few reasons:
1. They have a great point of view
2. They work with end-users and finance professionals from all over the world
3. DryRun is the best cash flow management software I have seen so far for businesses over about $1 Million in revenue
4. They are educating the marketplace
I'd love feedback on what you think about DryRun software.
Do you use cash flow management software? Or spreadsheets?
If so, I'd love to hear your opinion on your software or why you use spreadsheets.
What do you like? What doesn't work? What else do you need?
Let me know in the comments below!
#tcmp #finance #bestadvice
*I am not...
Strategic Action Plans
You know where you are today. You know where you want your business to go. So why is it so hard to change?
Because making real changes in a business takes big, bold shifts in actions, attitudes, and thinking.
You know all of that, so why is it STILL so hard to make changes?!
Because most business owners and managers are so busy working on the day-to-day challenges of running an ongoing business that it is next to impossible to focus on the work needed to create change.
Strategic action plans identify the changes that need to be made in a business and then break them down into achievable tasks that can be accomplished in 1-2 weeks. Most of the time an individual task doesn’t make a major change in a business. But ask yourself, ”What would happen to my business if every week I can implement just two small changes that would move my business in the direction of my ultimate goal?”
Two changes a week would mean 26 changes for your business in the...