12 Cash Flow Management Steps to Make a Profit

Cash Flow Management Steps To Guarantee You Make A Profit

12 Cash Flow Management Steps to Guarantee You Make a Profit

Working out a cash flow plan to guarantee profitability is not difficult, it just takes some discipline to take action and the willingness to sit down and pull the figures together. This is easily done using what you already know about your business and the revolutionary Cash Flow Mojo® software system.

1 – Work out your cash flow Budget – what it is costing to run your business every week on average (that is the break even amount)

This list will include the Cost of Goods Sold (COGS) and your expenses from your P&L

2 – Add an emergency fund to the budget

A financial emergency is simply a predictable expense that was never planned for. You know your A/C unit will need a new compressor some day, and that your vehicle will need 4 new tires at some point. Savings stashed in an emergency fund not only helps you sleep better at night, it also keeps you from scrambling to find the money when one of these so called emergency events happen.

Figure out how much you want to accumulate in the emergency fund and in what time frame. Then figure out how much you have to set aside each week to fill that “Bucket of Cash” and then make it happen.

3 – Add a set aside amount for paying off debt and past due bills to the budget

Add up any past due bills and all of the revolving credit debt you owe and figure out how much you would have to pay each week to pay that off in your preferred amount of time. For credit debt use an amortization table to calculate the interest portion that will compound while you pay off the credit debt.

4 – Add a set aside amount for business expansion to the budget

5 – Add a set aside amount for legal fees and taxes to the budget

6 – Add a set aside for your long-term wealth building program to the budget

Doing the steps above gives you your Sales and Income Planning Target to do much better than break even.

7 – On a weekly basis work out how you are going to make your sales and income planning target (what you are going to promote, how you are going to promote it, and what sales targets you will set for all sales people)

8 – Check your supplier costs and as they go up, raise your prices to insure you are making an adequate profit. Customers expect prices to go up.

Constantly search for new products and services you can offer your customers. (Ask them what they want and research new trends in your industry.)

9 – Find ways to stay ahead of your competition with great products, great customer service, and great marketing.

10 – Ask your customers for referrals and reward them for referring to you. Get them to write a positive review on your Google Places page. Both of these are pure gold.

11 – Do your cash flow planning every week in the Cash Flow Mojo software™ to run tight control on your cash flow and improve your financial condition. Keep the discipline in and create solvency and financial prosperity for your business despite what the economy is doing.

12 – Invest your long-term wealth building money in things that make more money for you, and reinvest the earnings. Go for growth but protect your principal too.

Bonus Tip #1:

Read my latest book Unleash Your Cash Flow Mojo to learn the details on how to do steps 1 through 12 above. It’s available on Amazon in Kindle and Paperback versions at http://amzn.to/YaNhpy

Bonus Tip #2

When times are good, PROMOTE. When times are bad, PROMOTE EVEN MORE! If you stop communicating with your customers, they will start listening to your competitors. To find out how to do this easily and cost effectively, visit http://www.CustomerFinderMarketing.com and sign up to get your complimentary web
presence analysis and 5 tips in 5 minutes about how to increase your website’s ranking in the search engines.

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12 Cash Flow Management Steps to Guarantee You Make a Profit

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