Tag Archive cash flow

how to manage your home business cash flow

How to Manage Your Home Business Cash Flow Effectively

Carl WillisNo Comments

how to manage your home business cash flowLearning how to manage your home business cash flow is important, but mainly because money is essential to running a business!

It is ideal to start out with money, but it’s also ideal to learn how to continually make money. Getting cash to come in means that you better know how to manage it once you have it.

This also means that you can’t spend it as soon as you get it. So, how do you handle your business cash flow once it starts rolling in?

There are several keys to getting cash to start flowing and to keep it rolling in, but spending it at the right time and for the right things is also important.

Today, I’m going to share with you how you can effectively manage your cash flow, using multiple tools, resources, and your team!

Learn How to Manage Your Home Business Cash Flow in the Beginning

When you start your home business you’ll want to study and research what should and could be done upfront before you get started.

However, you’ll want to learn how to manage your home business cash flow in the beginning too. Once the cash starts flowing, what will you do with it? What can you do to make sure that you have enough setback for income while paying your expenses?

Here’s what you’ll need to do.

  1. Monitor your cash flow on a regular basis. It’s wise to sit down at least once a week and see what is happening with your cash. Once a week is sufficient, unless you need twice a week. Depending on what your business is and how much you have coming in, you may have to review it twice a week, at least for a while. A good software system that can help you do your accounting may be quite helpful.
  2. Where can you cut costs? There are tons of tools and resources out there that we all get caught up in using for marketing online, but my biggest question is, which ones are working? Whatever is not working you should eliminate from your equation until further notice. In fact, my advice would be to start with one marketing method or tool at a time. Once you master it and get success with it, then you can add a new one. Until then, keep it simple.
  3. Is a business line of credit for you? A line of credit can be helpful in a time of need, but don’t wait until something goes wrong to get one. Always seek out your options for increasing and managing your cash flow when an investment needs to be made. You never know when you’ll need to invest in a new tool or resource. Get a business line of credit before you need it, and when something comes up, you’ll be ready.
  4. Stay on top of invoicing. Invoicing clients is a big deal, and this is especially true of those who outsource. Always ask for an invoice, even if it’s through PayPal. It is helpful for both you and your service provider to have a copy, so that you can keep track of what you’re spending and they can keep track of what they are making in case there is any question down the road.

There are numerous ways to keep your cash flow coming in, but just remember that managing it is just as important. Don’t forget to be a good steward of your cash flow, and learn how to manage your home business cash flow, no matter how small you start!

year end evaluation

It’s Time to Let Some Things Go

Carl WillisNo Comments

Every year during Christmas and New Years
I do an evaluation of my business.

During this time I look at what is profitable
and what is simply taking up valuable time
and resources.

I have found that without this honest evaluation
it is tempting to hang on to a non-performing
piece of my business for purely emotional

…past achievements

Perhaps you can relate.

At the end of the day, the real issue is cash

Does this business turn a profit or am I losing
money moth after month?

This is the criteria that I make my evaluation
from. Far too many get themselves into a
negative cash flow situation, but never pull
the plug until it is too late.

One of the lessons I’ve learned over many
years as an entrepreneur…

…take emotion out of your decisions and
let the numbers guide you.

Not sure what you should do with your
business? Let’s talk!

Cash Flow in Your Network Marketing Business

Carl Willis2 comments

I was listening to a recent webinar, when I heard a statistic that the average person stays in their network marketing business for 63 days.   The number one reason for this figure, was a lack of cash flow in their mlm business.   Today I want to talk about the importance of cash flow if you are going to truly build a long term network marketing business.

Let me help you quickly see why cash flow is so important by using this hypothetical illustration.  Joe and Sally join XYZ network marketing company, after attending an opportunity seminar at a local hotel.   Joe and Sally have been given a blueprint to follow by their upline recruiter that includes the following steps:

  1. Set up an autoship order
  2. Attend the weekly team meetings
  3. Attend the quarterly business conferences led by XYZ
  4. Conduct at least one home meeting each week for prospective customers
  5. Purchase training materials and motivational resources

Seems simple enough doesn’t it?   Now let’s consider the cost of those things.

  1. Set up an autoship order  – $150 per month
  2. Attend the weekly team meetings – $30 per month for gas
  3. Attend the quarterly business conferences led by XYZ – $300 for lodging, meals and fuel
  4. Conduct at least one home meeting each week for prospective customers – $160 per month for snacks, handouts, etc…
  5. Purchase training materials and motivational resources – $100 per month

Now this is an overly simplified illustration that doesn’t take into account things like printer ink, business cards, web hosting, advertising expenses, etc…  In our illustration, the monthly expense of operating this business is $540 per month.   The funding of this expense must come from Joe and Sally’s cash flow and if there is no cash flow it must come from their pockets.

Many of those who enter into network marketing are entering the business, because they are trying to lessen some of the financial pressure that is already upon them.  If they do not have cash flow from their mlm business, then that money is coming out of their pockets, or even worse requiring them to accumulate debt.  It is imperative that anyone involved in an mlm business opportunity learn to create cash flow if they are to successfully build a long term business.

In my next post of this series I will give you the number one strategy for creating the cash flow necessary to build your network marketing business for the long term.

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