Cash Flow Tips for Professional Speakers, Coaches and Authors

Small businesses often go through different stages of growth. When you're just starting out as a coach, consultant, speaker or trainer, it can be tough to manage your cash flow properly.

As your business grows, you'll need to start paying more attention to your finances and make sure that you're keeping track of your income and expenses. Without a solid plan in place, it's easy to find yourself in a situation where you're not bringing in enough revenue to cover your expenses. Therefore, in this blog post, we will discuss some tips for managing your cash flow during the growth stage of your business.

1. Increase income. One of the best ways to improve your cash flow is to increase your income. If you can bring in more money, you'll have more to work with when it comes to paying bills and covering expenses. There are a few different ways that you can do this, such as raising prices on your products or services, finding new clients or customers, increasing your sales volume, or finding new sources of revenue.

2. Set up a budget. Another important step in managing your cash flow is to set up a budget. When setting up a budget, be sure to include all of your fixed costs, such as rent and utilities, as well as your variable costs, such as marketing and inventory. Having a budget will help you keep track of where your money is going and make sure that you're not spending more than you can afford. Budgets can be simple or complex, depending on your needs. You can use software like Quickbooks to create a budget, or you can use a more simple method like creating a spreadsheet. Once you have a budget in place, stick to it as closely as possible so that you can keep your finances under control.

3. Track income and expenses. Once you have a budget in place, it's important to track your income and expenses so that you can see how well you're doing. This will help you identify areas where you may need to make changes in order to improve your cash flow. There are a number of ways to track your finances, such as using accounting software, keeping manual records, or hiring someone to do it for you.

4. Invest in accounting software. If you're serious about managing your cash flow, then investing in accounting software is a good idea. Accounting software can help you keep track of your income and expenses, create budgets, and even generate financial reports. Quickbooks is my favorite accounting software, but there are a number of other options available.

5. Hire a book-keeper and/or accountant. You've heard the horror stories of business owners who've lost everything because they didn't keep track of their finances. Don't let that happen to you. Hire a professional bookkeeper or accountant to handle some NOT all, of the financial tracking and reporting for your business. Never put yourself in a position where you could be taken advantage of by a rogue book-keeper or accountant.

6. Establish business credit. Another good way to improve your cash flow is to establish business credit. This can help you get access to loans and lines of credit at lower interest rates, which can save you money in the long run. There are a few different ways to establish business credit, such as by taking out a small business loan or using a business credit card.

7. Get a business loan from a financial institution. If you need some extra cash to help with your cash flow, then you may want to consider getting a business loan from a financial institution. Business loans can give you the money you need to cover expenses and keep your business running smoothly.

8. Negotiate for lower interest rates on your business credit cards. If you have business credit cards, it's important to try and get the lowest interest rates possible. This will save you money on your monthly payments and help improve your cash flow. You can negotiate with your credit card companies for lower interest rates by calling them and asking for a reduction.

9. Incentivize your clients to pay early or in full. One way to improve your cash flow is to incentivize your clients to pay early or in full. This can be done by offering a discount for early payment, or by charging a late fee for payments that are not made on time. Just make sure you clearly state the terms of the discount (e.g., "payment must be made within 30 days to receive the discount").

10. Create a cushion of cash on hand. This may seem counterintuitive, but having a cushion of cash on hand will help you weather any unexpected expenses that come up. You can create a cushion of cash by setting aside money each month, or by taking out a business loan. Aim to have enough money in savings to cover three to six months' worth of living and business expenses. This way, if you experience a slowdown in revenue, you won't have to worry about making ends meet.

11. Sell some of your assets, such as equipment or inventory. If you need to raise some extra cash, you can always sell some of your assets, such as equipment or inventory. This can be a quick and easy way to get the money you need to cover expenses and improve your cash flow.

12. Keep in mind that cash flow is not always linear. It's important to keep in mind that cash flow is not always linear. This means that there will be times when your income is higher than your expenses, and vice versa. The key is to manage your finances so that you have more money coming in than going out.

13. Heal your relationship with money. One of the most important things you can do for your business is to heal your relationship with money. This means learning to value yourself and your work, setting healthy boundaries around money, and creating a financial foundation that supports your long-term goals. When you heal your relationship with money, you'll find that your business will run more smoothly and your cash flow will improve. Cash flow problems are one of the main reasons why small businesses fail, so it's important to do the inner work that informs your outer money habits.

In conclusion, no matter what situation you're in, it's important to stay on top of your finances and take action when necessary. By following these tips, you can ensure that your business has a healthy cash flow and is able to weather any storms that come its way. Do you have any other cash flow management tips to share? Let us know in the comments!