Taneesa Williamson Struggling with cash flow? Andy Heyne has five tips to get you back on track.
As we’ve entered 2023, it’s yet another untypical year to most others we have experienced before. For some of you, interest rates are reaching all time highs never experienced in your business life cycle before. To make things more challenging, your personal life is being impacted by the rates rises; mortgage, living costs, coffee, fuel, insurances etc. Then to top it off, its synonymous with your clients! Potentially instilling uncertainty and fear in 2023. There may be a drop in client visits, and frequency of visits, and it’s obvious what follows, right? A drop in daily, weekly, monthly sales! You may ask yourself or start to internalise negative thoughts, because your mind has entered survival mode!
“How am I going to cover the costs of my 2-5 machines that are valued at around $80K+?”
“How am I going to cover wages, rent/mortgage on my building?”
Financial challenges will definitely come at you from every angle, that’s guaranteed! Although, this can either be your most detrimental moment in time or your most favourable. Let’s dive in and understand what you can do to mitigate the impact, or even thrive:
I have nearly liquidated twice in my career; the strategies below are some of what I did to save & thrive both times.
1. Take up real estate in their minds
Either you or your clients will convince themselves that spending money on treatments or services in your business is not essential, right? First thing, that train of thought is a limiting belief and dis-empowering! If you believe that, you will inject the same beliefs into your clients.
You need to re-direct your focus on “how can I take up real estate in my client’s mind”?
How are you going to adapt and pivot your business model with value ad? So your clients, when they do their budgets, don’t even consider cutting visits to your business. Put yourself in a state of growth and adaptation, you did it through COVID so you can do it again through an economic downturn!
2. Focus on cashflow habits: Expenses, re-financing, & wastage
Your expenses will shock you when stripped down to the day. Let’s take a look at re-financing. In our business, I rang both the companies we rent our cars through. I re-financed and saved over $1,000 a month in repayments, we were paying over $3,000 a month for our cars. A simple exercise to dramatically cut your monthly expenses down and increase cash-flow! Are you with me here? If you have had your equipment or machines for longer than 12-28 months, ring around and look at re-financing! Wastage in your business, I don’t need to harp on about wastage, I can guarantee your wastage control (I hope I am wrong) is not unabridged.
3. Look at synergistically creating new revenue streams to your business
If you can find 2-3 ways to add new revenue streams to your business that give your bottom line a bump of 20-30% with a cost ratio 1:3-1:5. With new revenue streams ensure it does not cost capital, You must find ways to have minimal startup (ideally none) at all. This will come from collaborations and being resourceful. Collaborations with people that are liquid will be the greatest move you make in tough times!
4. Increase your hours
WHAT, excuse me Andy? Economic times, call for drastic measures. If you cut back your hours in the easy and comfortable times, it’s potentially time to revert back to putting the hours in. Be intentional about it though, how long for? What is your goal for doing it? What is your savings goal? What is your investment goal? Set intentions so you don’t start to despise the idea. The FASTEST way to increase CASH-FLOW is increase the frequency of your efforts!
5. Have a follow up strategy
Pull client files and look at clients that haven’t been back to you for over three months. Call them up and check in (don’t make this a sales call) it is purely a re-connection call. Your follow up and reaching out to your powerbase has the potential to increase your margins by over 25%.
Focus on the above to combat rate rises, financial challenges in 2023. Become expansive in your thinking and in your efforts.
Andy Heyne is the Founder of Millionaire Salon Coach – millionairesaloncoach.com
Read SPA+CLINIC’s latest issue here:
There are 5 ways you can catch up with SPA+CLINIC
- Our quarterly print magazine, delivered to your door. Subscribe here.
- Our website, which is updated daily with its own completely unique content and breaking news.
- Our weekly newsletter – free to your inbox! Subscribe here.
- Our digital magazine – click here to view previous issues.
- Our social media – see daily updates on our Instagram, Facebook & Linkedin
