A lot of the Recruitment and Search Business Owners I speak to are being held back by “cash flow” flow issues…
It stops hem hiring top performers,
Stops them purchasing software or equipment that will save them time,
Stops them investing in resources that will grow their business…
Bad cash flow can cripple any plans you had of growth…
Although cash flow issues are something that almost every business will go through at one time or another…
It can be part of the “pain” of growing…
I’ve often found that a lot of the time it can be avoided completely… And if not avoided, significantly reduced…
Here are five ways you can do it…
1.) Increase your sales – This is perhaps the most obvious one and the one I see most Recruitment and Search Business Owners pay attention to when they have cash flow issues. It all comes down to winning more business. It’s a solid solution and not to be ignored, but it is just ONE solution and will only take you so far as even when you win more business, there’s likely to be a cost involved in the delivery.
2.) Reduce and control expenses – Again, one of the most obvious solutions. Reduce what you’re spending and cut back on anything that doesn’t drive revenue (either directly or indirectly). All things being equal, If less money leaves your account this month in comparison to last, you’ll be in a better financial position.
3.) Speed up incoming payments – One of the biggest causes of “bad cash flow” is the speed of payment rather than lack of income or lack of sales. Get paid ASAP, reduce your payment terms or better yet, get paid upfront.
4.) Delay outgoing payments – Cash flow comes down to money in your bank account vs money out. Delaying outgoing payments means you hold onto the cash for longer so you can do more with it. Contacting old suppliers and renegotiating terms or changing your commission structure are two quick ways to do this.
5.) Increase your fees – My favourite one (probably because it takes the least amount of work) increase your fees. Even a 1% or 2% increase in your current fees could have a positive impact. But be a bit more courageous (and use the strategy) and you COULD increase your fees by 10% or more and change your life.
Whenever you’re ready….
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