Copyright 2003 by Gerry Foster

Any business owner who says, "I don't have enough money to do any marketing" is someone who is really saying, "I don't have enough clients." The symptom of not having enough clients is lack of cash. The root problem or cause of the symptom is that the service provider simply doesn't know how to turn cash.

If there's one secret to running a successful business, it's learning how to turn cash - then, manage that cash effectively. On the one hand, you want to make sure your marketing plan generates a steady stream of new clients. On the other hand, all the new clients in the world won't help if you don't have enough cash on hand to cover expenses while you get work done for those new clients. Bottom line:

Cash is king!
It will get you through times
of no work better than work
will get you through times of no cash.

Accountants and financial advisors, of course, can provide you with solid, prudent cash-flow strategies. They usually suggest things like: keep a cash cushion, lease equipment, establish lines of credit, and live beneath your means, just to name a few. Good stuff.

However, from a marketing standpoint, I look at cash flow enhancement from a different angle. Here are six, proven, quick-and-easy tips for handling cash (and the lack thereof) and turning cash fast:

1. Take on a variety of work. Focus on evening out the flow of cash coming in by hunting for "deer and squirrels" at the same time. Large, lucrative projects are great but they can too long to snare. I feel just as happy selling four mid-fee consulting projects as one high-fee project. I have much more peace-of-mind by filling in major client projects with smaller projects that will produce quick cash. If you insist on only hunting for larger projects, build monthly or bi-monthly milestones into your contracts so you get paid portions of your fee as portions of the project are completed. And by all means, don't wait until business slows down before doing any marketing. The best time to market is when you're busy. There's less pressure, it's more fun, and you're more confident.

2. Be accurate with your sales forecasts. Don't underestimate the amount of cash you'll need to operate and overestimate the speed with which clients'll pay you. This is critical, because most businesses grow from their cash flow. If you take on too many "C-type" clients, for instance (they're the slow payers who are a pain to deal with and probably make you no profit), the odds are high that cash will not come in on schedule. Consequently, your business will be severely constrained. Instead, spend more time uplifting your relationship with your best "A-type" clients who pay on time, are profitable, and are easy and fun to work with.

3. Provide your services at a significantly reduced fee. Do this in exchange for a percentage of the client's business, or sales increase, or cost savings you generate. You'll probably close a lot more deals sooner than later.

4. Donate your services to a highly visible, very aggressive, and progressive local charity, which holds auctions. It's a great way to give you exposure to a lot of cash paying clients who may belong to your target audience.

5. Make an offer the prospect can't refuse. Let's say the total cost of providing your service - labor + overhead - is $600. And you want to make a $500 profit (or charge the client $1,100 for the project). Make this offer to the prospect: Pay $600 as a deposit, then five payments of $100 (you determine the payment intervals) each with no interest or finance charges. Assuming they're pleased with the work you did, you can afford to make such a deal. What's more, word will spread about your capabilities. Similar arrangements could be made with other prospects and, before you know it, you've got a steady stream of future, predictable income you can count on.

6. Sell to past clients. There's an old adage," The easiest person to sell to is the one you've already sold to." How true. Come up with some type of offer that will appeal to people who bought from you before. Special sales. Invitation only events. New products, services, or programs. Free services or free stuff if they pay by a certain date. Sneak previews for preferred clients. Early payment incentives. These offers all assume, of course, that your clients were pleased with the services they received from you in the past. And that you have a client database with up-to-date contact information.

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Please contact me directly by phone at 949.499.1174 or by email at gerry@masterymarketing.com if you would like to discuss ways to boost your cash flow