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15 ways to boost your short-term cash flow – Ask Evan


hi I’m Evan Carmichael welcome to the

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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