The truth is, until you’re cash flow is like Niagara Falls then you are not earning your worth. I’m sure you’re a hard worker and very driven at making your business or venture successful. But, are you earning your worth or are you just making enough money to pay the bills and go to the movies? If it’s the latter, then check out these 5 steps on how to make your money work for you.
When was the time you studied your books? It’s been said countless times but knowing your numbers is the only way to grow a business successfully. Only then will you know exactly what your expenses are, where most of your money is being made and how much net profit you have left at the end of the month. So, before going any further open your P&L and study it for a good 20 minutes.
Now, take action. Once you know where most of your income is coming from each month start thinking of opportunities to maximize your profit in a way that doesn’t increase your expenses. i.e. sublease your office, add online products or pre-recorded material for purchase etc. You also need to take action regarding your expenses. Odds are there is something every month that is draining your cash flow that you have control over. Clearly you can’t control your mortgage or health insurance but what about your credit card bill? What if you worked on lower those? Start deducting even small expenses and you'll quickly start noticing a difference. After all, what’s the point of working so hard to then spend it all on bills?
One Step Further. If you are serious about wanting to expand your cash flow you are also going to need to start a savings account. Every month put away a designated amount in this savings account. Whether it’s $300 or $10,000 you'll be surprised by how quickly your account will grow. This money will not only be your savior on a rainy day but can help you buy assets to later grow your company.
Keep your eyes open. Now as you start fixing your cash flow and increasing your savings the most important step is this: open your eyes to opportunities. The truth is that opportunities for us to make money are everywhere. From online to live and 3rd party services the opportunities are endless and it’s your #1 job to make sure your grab the ones that come at you. The trick, is making sure that the liability and risk don’t outweigh the asset.
Questions on action steps? We would love to hear from you! Email us at [email protected]
