That was the theme of a Dec. 2 teleseminar by Maui Mastermind Chief Catalyst and COO Patty DeDominic, with an assist from business coach Mike McCormick. The cash flow teleseminar was in advance of the next Maui Mastermind conference Jan. 9 in San Diego.
Patty emphasized businesses should keep a close watch on their cash flow shortage vs. operating losses. While some small businesses use credit card companies, a good idea is to get a line of credit from your existing bank long before a cash-flow crisis arises. Your bank will usually listen to your needs for free instead of billing you like a CPA or an attorney.
Patty suggests that the best way to avoid this dilemma is to get paid up front or have a more clear agreement about when fees will be paid. Also, Patty reiterates that it is important to have good quality control so that the client can be sure he or she is getting the service for which payment is due.
However, Patty said during her more than three decades in business that she has faced similar problems that challenged her to meet payroll. Sometimes, this situation gets extreme. “Some of the finest people I know went broke,” Patty said. “Being broke is nothing to be ashamed about; it’s not the same as being poor.”
Patty said businesses should project their spending, plan and budget accordingly. Watch for recurring expenses. Prune clients. Businesses should ask themselves, “Are we just spending or investing?”
In the long term, strategic planning will pay off, she said.
Keywords: executive coaching, business coaching, business coaching program, build a business not a job, grow your business, cash flow
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