3 Tips to Equalize Cash Flow to Client Flows
By Melanie Benson Strick | January 22nd, 2008Your bills are piling up. Your website is in its fourth reiteration and you still aren’t getting clients.You just discovered that you should be posting articles and doing online press releases but you are running out of time and money.
You know you need to build a team so you can get things done but you are already tapped out.
And yet, you still don’t have the new clients, list building or desired internet traffic that you need.
What is an entrepreneur to do now?
It’s time to infuse some reality into your situation. I have a saying that there are no unrealistic goals, just unrealistic expectations! Did you really set the best expectations here?
Too many entrepreneurs start their ventures with little or no capital. They set deadlines that are impossible to meet because that is when they are running out of money. They forget to test their target audience with their offer to see if they really want it. Then they are surprised when the market resists. Frustrated, baffled and burned out, you wonder if you should just go get a job again.
Does this sound like you? If so, here are my 3 suggestions to equalize your cash flow with your client flow:
- Get crystal-clear about what WILL work. Are you on the right track but need more time to build credibility and traffic? Or are you just shooting darts into the sky hoping something will land? One of the suggestions we make for our Fast-Track members is to create a clearly defined roadmap to get you to the desired outcome. This includes being realistic about how long things really take to get going.
- Get cash flow somewhere else. Borrow money. Get a line of credit. Get a low interest credit card. When you don’t have cash you make “limiting decisions” based on how much money you have vs. what is good for your business. If you are just starting out, I suggest putting aside 6 months of operating expenses (plan on at least $5k/month).
- Upgrade your mindset. Most of us think to ourselves, “What’s the least I can spend to get going?” A more powerful way to think is, “What do I need to invest in to grow rapidly?” Back in my project management days we were taught a formula: If you want the end result faster you need more manpower, which requires more money. I watch a lot of people stunt their rapid growth by not being willing to build a team approach.
Remember, you are building a business and you will need to invest in it. Remember, you are building a business that is supposed to last a lifetime. How you approach your capital investment in your business is either setting you up for a win or for failure. Even Microsoft, Starbucks and Oprah had to borrow money to get off the ground.
About the Coach:
Melanie Benson Strick, The Million Dollar Lifestyle Business Coach, teaches entrepreneurs how to stop feeling overwhelmed so they can create more money, more freedom and more prestige.
Get the Entrepreneur’s Secret Weapon to revolutionize your results and get on the fast-track to a freedom based business at www.thepowerofthevirtualteam.com
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January 23rd, 2008 at 6:38 am
Amen Melanie!
It’s easy to get excited about the opportunity and put the marketing plan in place before putting the financial/borrowing plan in place. But both are vital. When I talk to entrepreneurs who are getting the help they need before the desperately need it, I know they are going to have a much better shot at success.
As for the credit cards — make sure you get business credit cards, not personal to grow your business! Choose those that don’t report to your personal credit report so you don’t damage your personal credit with the debt. My faves are on our site.
April 22nd, 2008 at 1:06 am
Dear Melanie,
Since I’m looking to take my eBiz to another level
and build my virtual team, this article
was the right thing at the right time..
Phew, what a relief!
Hey, I really enjoy your podcasts, keep them coming..
Cheers,
Codrut Turcanu - “Succeeding Against All Odds!”
April 27th, 2008 at 8:59 am
Thanks Codrut, sorry for the delay in getting your post up, it got stuck in a bunch of spam.
Good luck with your ebiz and building your virtual team. Hopefully you’ve gotten your copy of The Power of the Virtual Team at http://www.thepowerofthevirtualteam.com.
I know it will help with building the RIGHT team the first time!
Wishing you lots of success,
Melanie
December 2nd, 2008 at 3:45 pm
I totally agree with Gerri about getting the right type of credit card. One other item that is important is making sure the business entity has good busines credit history.
You can do this by setting up a file with dnb and making sure your vendors report your good payment history to the credit buereua. This will help to strengthen any future lending requests.