hi I’m Evan Carmichael welcome to the edition of ask Evan today I’m working
edition of ask Evan today I’m working
edition of ask Evan today I’m working with Intuit again and we’re gonna be
with Intuit again and we’re gonna be
with Intuit again and we’re gonna be continuing our financial literacy series
continuing our financial literacy series
continuing our financial literacy series to help you better understand your
to help you better understand your
to help you better understand your numbers and to be able to make important
numbers and to be able to make important
numbers and to be able to make important business decisions from them so today
business decisions from them so today
business decisions from them so today I’m going to be looking at how can you
I’m going to be looking at how can you
I’m going to be looking at how can you quickly get cash flow into your business
quickly get cash flow into your business
quickly get cash flow into your business so we’re gonna look at fifteen different
so we’re gonna look at fifteen different
so we’re gonna look at fifteen different ways that you can improve your
ways that you can improve your
ways that you can improve your short-term cash flow I know for a lot of
short-term cash flow I know for a lot of
short-term cash flow I know for a lot of entrepreneurs you might be facing the
entrepreneurs you might be facing the
entrepreneurs you might be facing the serious cash crunch right now and so
serious cash crunch right now and so
serious cash crunch right now and so here are 15 ways that you can inject
here are 15 ways that you can inject
here are 15 ways that you can inject some immediate money into your business
some immediate money into your business
some immediate money into your business number one have a sale one of the
number one have a sale one of the
number one have a sale one of the fastest ways to bring in immediate cash
fastest ways to bring in immediate cash
fastest ways to bring in immediate cash flow is to have a sale have it for a
flow is to have a sale have it for a
flow is to have a sale have it for a limited time only so people are forced
limited time only so people are forced
limited time only so people are forced to buy now or they’ll miss out make sure
to buy now or they’ll miss out make sure
to buy now or they’ll miss out make sure however that you don’t mortgage your
however that you don’t mortgage your
however that you don’t mortgage your future just to bring in some quick money
future just to bring in some quick money
future just to bring in some quick money although you’re giving a price discount
although you’re giving a price discount
although you’re giving a price discount it should still be profitable for you
it should still be profitable for you
it should still be profitable for you but you’re gonna run into even bigger
but you’re gonna run into even bigger
but you’re gonna run into even bigger problems down the road
problems down the road
problems down the road number two cross-sell and upsell the
number two cross-sell and upsell the
number two cross-sell and upsell the easiest people to sell to are your
easiest people to sell to are your
easiest people to sell to are your current customers they know you like you
current customers they know you like you
current customers they know you like you trust you and love working with you
trust you and love working with you
trust you and love working with you instead of spending so much time finding
instead of spending so much time finding
instead of spending so much time finding new clients selling more to people who
new clients selling more to people who
new clients selling more to people who have already bought from you is a fast
have already bought from you is a fast
have already bought from you is a fast way to improve your cash flow you can
way to improve your cash flow you can
way to improve your cash flow you can either sell greater quantities of your
either sell greater quantities of your
either sell greater quantities of your current offering for example buy two of
current offering for example buy two of
current offering for example buy two of my hats instead of one or some related
my hats instead of one or some related
my hats instead of one or some related products and services to complement your
products and services to complement your
products and services to complement your offering for example buy one hat and
offering for example buy one hat and
offering for example buy one hat and also buy a pair of gloves a simple email
also buy a pair of gloves a simple email
also buy a pair of gloves a simple email or phone campaign the current customers
or phone campaign the current customers
or phone campaign the current customers with a hook should have your cash
with a hook should have your cash
with a hook should have your cash registers ringing in no time number
registers ringing in no time number
registers ringing in no time number three look at your accounts receivable
three look at your accounts receivable
three look at your accounts receivable here’s a sample collections report from
here’s a sample collections report from
here’s a sample collections report from QuickBooks Online it’ll tell you who
QuickBooks Online it’ll tell you who
QuickBooks Online it’ll tell you who owes you money how much and when they
owes you money how much and when they
owes you money how much and when they were supposed to pay in this example the
were supposed to pay in this example the
were supposed to pay in this example the company’s owed almost $9,000 and the
company’s owed almost $9,000 and the
company’s owed almost $9,000 and the invoices are 38 to 106 days overdue it’s
invoices are 38 to 106 days overdue it’s
invoices are 38 to 106 days overdue it’s time to start calling on these companies
time to start calling on these companies
time to start calling on these companies more aggressively to make sure they paid
more aggressively to make sure they paid
more aggressively to make sure they paid their bills you want to maintain a good
their bills you want to maintain a good
their bills you want to maintain a good relationship with your clients but
relationship with your clients but
relationship with your clients but you’re also running a business not a
you’re also running a business not a
you’re also running a business not a charity and bills need to get paid for
charity and bills need to get paid for
charity and bills need to get paid for future clients you may also want to run
future clients you may also want to run
future clients you may also want to run a credit check on them before you extend
a credit check on them before you extend
a credit check on them before you extend any
any
any kind of terms to them number four give
kind of terms to them number four give
kind of terms to them number four give an incentive to pay early some clients
an incentive to pay early some clients
an incentive to pay early some clients might have a policy of only paying after
might have a policy of only paying after
might have a policy of only paying after 60 90 or even 120 days the bigger the
60 90 or even 120 days the bigger the
60 90 or even 120 days the bigger the client is generally the more you have to
client is generally the more you have to
client is generally the more you have to wait to get paid one way to flip this
wait to get paid one way to flip this
wait to get paid one way to flip this around is to offer an incentive to pay
around is to offer an incentive to pay
around is to offer an incentive to pay early depending on what your margins are
early depending on what your margins are
early depending on what your margins are and how badly you need the money you can
and how badly you need the money you can
and how badly you need the money you can give a discount say two to five percent
give a discount say two to five percent
give a discount say two to five percent of the invoice if they pay right away
of the invoice if they pay right away
of the invoice if they pay right away instead of waiting some customers will
instead of waiting some customers will
instead of waiting some customers will take you up on it because it also helps
take you up on it because it also helps
take you up on it because it also helps them and it puts money into your pocket
them and it puts money into your pocket
them and it puts money into your pocket immediately number five make sure you
immediately number five make sure you
immediately number five make sure you invoice on time a lot of entrepreneurs
invoice on time a lot of entrepreneurs
invoice on time a lot of entrepreneurs are so busy running their businesses and
are so busy running their businesses and
are so busy running their businesses and trying to get new customers but they put
trying to get new customers but they put
trying to get new customers but they put off administrative tasks like invoicing
off administrative tasks like invoicing
off administrative tasks like invoicing the longer you wait to invoice the
the longer you wait to invoice the
the longer you wait to invoice the longer you wait to get paid as soon as
longer you wait to get paid as soon as
longer you wait to get paid as soon as you’re able to annoys your clients you
you’re able to annoys your clients you
you’re able to annoys your clients you can get the money as quickly as possible
can get the money as quickly as possible
can get the money as quickly as possible number six change your billing structure
number six change your billing structure
number six change your billing structure try as much as possible to get the money
try as much as possible to get the money
try as much as possible to get the money up front and deliver the products or
up front and deliver the products or
up front and deliver the products or services afterwards for example when I
services afterwards for example when I
services afterwards for example when I work with clients I use a retainer
work with clients I use a retainer
work with clients I use a retainer system they hire me for project which
system they hire me for project which
system they hire me for project which may include work for up to six months or
may include work for up to six months or
may include work for up to six months or a year I’ll build them up front for the
a year I’ll build them up front for the
a year I’ll build them up front for the entire project and then deliver
entire project and then deliver
entire project and then deliver according to the schedule we set up if
according to the schedule we set up if
according to the schedule we set up if you’re selling a product think about
you’re selling a product think about
you’re selling a product think about offering some kind of subscription model
offering some kind of subscription model
offering some kind of subscription model where they pay in advance for a year and
where they pay in advance for a year and
where they pay in advance for a year and they get a certain quantity every month
they get a certain quantity every month
they get a certain quantity every month you can consider offering a slight
you can consider offering a slight
you can consider offering a slight discount in exchange for them making a
discount in exchange for them making a
discount in exchange for them making a long-term commitment to you and for
long-term commitment to you and for
long-term commitment to you and for paying upfront
paying upfront
paying upfront number seven accept credit cards share
number seven accept credit cards share
number seven accept credit cards share their credit card fees they have to pay
their credit card fees they have to pay
their credit card fees they have to pay but there are also some major advantages
but there are also some major advantages
but there are also some major advantages to accepting credit cards as a payment
to accepting credit cards as a payment
to accepting credit cards as a payment option the first is that you get the
option the first is that you get the
option the first is that you get the money quickly either instantly or by the
money quickly either instantly or by the
money quickly either instantly or by the end of the day customers are also more
end of the day customers are also more
end of the day customers are also more likely to spend more money when they pay
likely to spend more money when they pay
likely to spend more money when they pay by credit card compared the one they pay
by credit card compared the one they pay
by credit card compared the one they pay by cash you might be saving a little bit
by cash you might be saving a little bit
by cash you might be saving a little bit by not using credit cards but you’re
by not using credit cards but you’re
by not using credit cards but you’re also probably leaving a lot of money on
also probably leaving a lot of money on
also probably leaving a lot of money on the table
the table
the table number eight factor your receivables if
number eight factor your receivables if
number eight factor your receivables if you have significant money owed to you
you have significant money owed to you
you have significant money owed to you it’s possible to sell the receivables to
it’s possible to sell the receivables to
it’s possible to sell the receivables to a factoring company they’ll give you a
a factoring company they’ll give you a
a factoring company they’ll give you a percentage of the total amount and
percentage of the total amount and
percentage of the total amount and return for you getting immediate cash
return for you getting immediate cash
return for you getting immediate cash typically the larger your clients are
typically the larger your clients are
typically the larger your clients are the greater percentage you’ll get
the greater percentage you’ll get
the greater percentage you’ll get because it’s less risks for them to take
because it’s less risks for them to take
because it’s less risks for them to take on factoring generally is still
on factoring generally is still
on factoring generally is still expensive and only recommend using it as
expensive and only recommend using it as
expensive and only recommend using it as a last resort
a last resort
a last resort number nine sell excess inventory if you
number nine sell excess inventory if you
number nine sell excess inventory if you have inventory that is just taking up
have inventory that is just taking up
have inventory that is just taking up space try to sell a lot for a quick cash
space try to sell a lot for a quick cash
space try to sell a lot for a quick cash injection you may not turn a large
injection you may not turn a large
injection you may not turn a large profit on it but if it’s not being used
profit on it but if it’s not being used
profit on it but if it’s not being used then the best value you may get from it
then the best value you may get from it
then the best value you may get from it is to trade it for media cash note that
is to trade it for media cash note that
is to trade it for media cash note that I wouldn’t recommend doing this for
I wouldn’t recommend doing this for
I wouldn’t recommend doing this for inventory that you’re going to use in
inventory that you’re going to use in
inventory that you’re going to use in your business selling inventory that you
your business selling inventory that you
your business selling inventory that you will eventually need as steeply
will eventually need as steeply
will eventually need as steeply discounted price will have a long-term
discounted price will have a long-term
discounted price will have a long-term negative impact on your business
negative impact on your business
negative impact on your business number 10 negotiate terms with your
number 10 negotiate terms with your
number 10 negotiate terms with your suppliers this in theory is a good idea
suppliers this in theory is a good idea
suppliers this in theory is a good idea and the textbooks will tell you to do it
and the textbooks will tell you to do it
and the textbooks will tell you to do it the idea here is to look at everyone who
the idea here is to look at everyone who
the idea here is to look at everyone who you owe money to so your suppliers and
you owe money to so your suppliers and
you owe money to so your suppliers and try to delay your payment to them for as
try to delay your payment to them for as
try to delay your payment to them for as long as possible it makes sense because
long as possible it makes sense because
long as possible it makes sense because if you’re delaying when money goes out
if you’re delaying when money goes out
if you’re delaying when money goes out you’re improving your short-term cash
you’re improving your short-term cash
you’re improving your short-term cash flow here’s what I don’t like the
flow here’s what I don’t like the
flow here’s what I don’t like the strategy
strategy
strategy it can sour your relationship with your
it can sour your relationship with your
it can sour your relationship with your supplier you want to count on your
supplier you want to count on your
supplier you want to count on your suppliers for quality products and
suppliers for quality products and
suppliers for quality products and services if you’re in a bind they need
services if you’re in a bind they need
services if you’re in a bind they need something quickly you want to know that
something quickly you want to know that
something quickly you want to know that your suppliers have your back you think
your suppliers have your back you think
your suppliers have your back you think they’re gonna give you their very best
they’re gonna give you their very best
they’re gonna give you their very best and bend over backwards for you if
and bend over backwards for you if
and bend over backwards for you if you’re stretching them out on when you
you’re stretching them out on when you
you’re stretching them out on when you pay them think about it if they’re a
pay them think about it if they’re a
pay them think about it if they’re a small business owner then they likely
small business owner then they likely
small business owner then they likely have cashflow concerns as well and are
have cashflow concerns as well and are
have cashflow concerns as well and are looking at their accounts receivable ie
looking at their accounts receivable ie
looking at their accounts receivable ie you for some relief if it’s a big
you for some relief if it’s a big
you for some relief if it’s a big company then get the best terms that you
company then get the best terms that you
company then get the best terms that you can but it’s a small company I’d be very
can but it’s a small company I’d be very
can but it’s a small company I’d be very hesitant in negotiating terms in my
hesitant in negotiating terms in my
hesitant in negotiating terms in my business I pay my suppliers as soon as
business I pay my suppliers as soon as
business I pay my suppliers as soon as the invoice me I pay ahead of when
the invoice me I pay ahead of when
the invoice me I pay ahead of when they’re expecting with no discount
they’re expecting with no discount
they’re expecting with no discount because I want the best from them and I
because I want the best from them and I
because I want the best from them and I get it
get it
get it number eleven create a referral program
number eleven create a referral program
number eleven create a referral program another great way to boost cash flow
another great way to boost cash flow
another great way to boost cash flow through sales is to ask for referrals
through sales is to ask for referrals
through sales is to ask for referrals from your existing clients again they
from your existing clients again they
from your existing clients again they like you know you trust you enjoy
like you know you trust you enjoy
like you know you trust you enjoy working with you maybe they know someone
working with you maybe they know someone
working with you maybe they know someone else who could also benefit from what
else who could also benefit from what
else who could also benefit from what you do you could create an elaborate
you do you could create an elaborate
you do you could create an elaborate program with incentives or just call up
program with incentives or just call up
program with incentives or just call up your best customers to take about the
your best customers to take about the
your best customers to take about the lunch to ask for their help in thinking
lunch to ask for their help in thinking
lunch to ask for their help in thinking of other people who might be a client
of other people who might be a client
of other people who might be a client for you really depends on the customer
for you really depends on the customer
for you really depends on the customer some love the recognition and others
some love the recognition and others
some love the recognition and others just do it because you ask them to
just do it because you ask them to
just do it because you ask them to either way getting new clients in the
either way getting new clients in the
either way getting new clients in the door is a great way to improve both the
door is a great way to improve both the
door is a great way to improve both the short term and long term cash flow of
short term and long term cash flow of
short term and long term cash flow of your business and referrals on one of
your business and referrals on one of
your business and referrals on one of the best ways to get ideal clients
the best ways to get ideal clients
the best ways to get ideal clients onboard number twelve refinance short
onboard number twelve refinance short
onboard number twelve refinance short term into long term debt the people you
term into long term debt the people you
term into long term debt the people you owe money to they want to get paid back
owe money to they want to get paid back
owe money to they want to get paid back and for that to happen you still have to
and for that to happen you still have to
and for that to happen you still have to be in business talk to your lenders and
be in business talk to your lenders and
be in business talk to your lenders and see if is a way to negotiate a better
see if is a way to negotiate a better
see if is a way to negotiate a better deal in particular you’re looking for
deal in particular you’re looking for
deal in particular you’re looking for ways to move the short term debt which
ways to move the short term debt which
ways to move the short term debt which is money that’s owed within the next
is money that’s owed within the next
is money that’s owed within the next year and convert it into long-term debt
year and convert it into long-term debt
year and convert it into long-term debt money that’s owed beyond one year this
money that’s owed beyond one year this
money that’s owed beyond one year this will give you some cash flow relief that
will give you some cash flow relief that
will give you some cash flow relief that you can hopefully use to continue
you can hopefully use to continue
you can hopefully use to continue growing your business number thirteen
growing your business number thirteen
growing your business number thirteen sell and leaseback
sell and leaseback
sell and leaseback another creative way to improve your
another creative way to improve your
another creative way to improve your cash flow is to look at your fixed
cash flow is to look at your fixed
cash flow is to look at your fixed assets and see if there’s anything you
assets and see if there’s anything you
assets and see if there’s anything you can sell and then lease back to the
can sell and then lease back to the
can sell and then lease back to the business this works particularly well
business this works particularly well
business this works particularly well with expensive assets like land and
with expensive assets like land and
with expensive assets like land and buildings the idea is to sell your asset
buildings the idea is to sell your asset
buildings the idea is to sell your asset to a company which gives you immediate
to a company which gives you immediate
to a company which gives you immediate money but then you create a lease
money but then you create a lease
money but then you create a lease agreement where you pay an ongoing fee
agreement where you pay an ongoing fee
agreement where you pay an ongoing fee for the right to use the asset it will
for the right to use the asset it will
for the right to use the asset it will increase your regular payments out but
increase your regular payments out but
increase your regular payments out but gives you a monetary injection that you
gives you a monetary injection that you
gives you a monetary injection that you can help use to solve an immediate cash
can help use to solve an immediate cash
can help use to solve an immediate cash crunch no you can only do this once
crunch no you can only do this once
crunch no you can only do this once number fourteen convert debt to equity
number fourteen convert debt to equity
number fourteen convert debt to equity this is an even more creative option and
this is an even more creative option and
this is an even more creative option and one you should really only use if you
one you should really only use if you
one you should really only use if you have a good relationship with the people
have a good relationship with the people
have a good relationship with the people you owe money to the idea here is to
you owe money to the idea here is to
you owe money to the idea here is to take the people you need to pay and swap
take the people you need to pay and swap
take the people you need to pay and swap the amount you owe them for equity in
the amount you owe them for equity in
the amount you owe them for equity in your business you give them a piece of
your business you give them a piece of
your business you give them a piece of your company and they erase the debt you
your company and they erase the debt you
your company and they erase the debt you have to figure out how much you think
have to figure out how much you think
have to figure out how much you think your company is worth as well as how
your company is worth as well as how
your company is worth as well as how much you’re going to give up to them
much you’re going to give up to them
much you’re going to give up to them more importantly you’ll want to really
more importantly you’ll want to really
more importantly you’ll want to really ask yourself if you want this person to
ask yourself if you want this person to
ask yourself if you want this person to be a part of your business long term or
be a part of your business long term or
be a part of your business long term or not because the last thing you need is a
not because the last thing you need is a
not because the last thing you need is a minority shareholder who adds no value
minority shareholder who adds no value
minority shareholder who adds no value and causes problems for the company it’s
and causes problems for the company it’s
and causes problems for the company it’s not my favorite option but it’s an
not my favorite option but it’s an
not my favorite option but it’s an option so I wanted to share it with you
option so I wanted to share it with you
option so I wanted to share it with you number fifteen bootstrap this is my top
number fifteen bootstrap this is my top
number fifteen bootstrap this is my top suggestion of all I hate spending money
suggestion of all I hate spending money
suggestion of all I hate spending money until I’m making money anybody can spend
until I’m making money anybody can spend
until I’m making money anybody can spend money but it takes a lot of effort to
money but it takes a lot of effort to
money but it takes a lot of effort to learn how to make it if you have a goal
learn how to make it if you have a goal
learn how to make it if you have a goal to accomplish something and you think
to accomplish something and you think
to accomplish something and you think you need X amount of dollars to do it
you need X amount of dollars to do it
you need X amount of dollars to do it find a way to start smaller and without
find a way to start smaller and without
find a way to start smaller and without spending any money prove to yourself
spending any money prove to yourself
spending any money prove to yourself that you can make a little bit of money
that you can make a little bit of money
that you can make a little bit of money just by putting in your time then when
just by putting in your time then when
just by putting in your time then when you know how to make money you can spend
you know how to make money you can spend
you know how to make money you can spend money to expend it’s good money to
money to expend it’s good money to
money to expend it’s good money to invest because you know it’s gonna work
invest because you know it’s gonna work
invest because you know it’s gonna work you’re just expanding on what you’ve
you’re just expanding on what you’ve
you’re just expanding on what you’ve already shown is effective it’s hard
already shown is effective it’s hard
already shown is effective it’s hard work it takes a lot more time but will
work it takes a lot more time but will
work it takes a lot more time but will help ensure that you’re building your
help ensure that you’re building your
help ensure that you’re building your business the right way
business the right way
business the right way don’t spend until you earn thank you for
don’t spend until you earn thank you for
don’t spend until you earn thank you for joining me for another edition of ask
joining me for another edition of ask
joining me for another edition of ask Evan I hope you liked the video if you
Evan I hope you liked the video if you
Evan I hope you liked the video if you did and you want to see more please give
did and you want to see more please give
did and you want to see more please give it a thumbs up below it makes me want to
it a thumbs up below it makes me want to
it a thumbs up below it makes me want to do more of these for you and I’d love to
do more of these for you and I’d love to
do more of these for you and I’d love to hear you have to think if you have a
hear you have to think if you have a
hear you have to think if you have a question about this video or you have a
question about this video or you have a
question about this video or you have a question about your own business I’d
question about your own business I’d
question about your own business I’d love to hear it if you want to leave it
love to hear it if you want to leave it
love to hear it if you want to leave it in the comment section below so thank
in the comment section below so thank
in the comment section below so thank you and we’ll see you on the next
you and we’ll see you on the next
you and we’ll see you on the next episode
”
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