You probably heard the old adage "Cash is King" in business. If you have cash, then most problems are solvable. Unfortunately, this is not the case for most solopreneurs. Most of us struggle with cash flow problems in our small businesses. Our responsibility as business owners is to know our financial numbers ( income and expenses) and react quickly when they become misaligned.

To illustrate the importance of cash flow, imagine if your business was a car. A car needs gas to run, so cash in your business would represent the vehicle's fuel. You must always have enough gas in the tank if you expect to go anywhere. The same is true for having adequate cash in your business.

Cash Flow determines if you have enough cash flowing in and out of your business to be sustainable long-term.
If you're struggling to cover your monthly expenses or there is a lag between the days left in the month and your next cash infusion, it means something in your business is out of alignment and needs to be fixed.

By identifying what's causing the problem, you can begin thinking of ways to solve it.

So let's look at this more in-depth

 If your monthly expenses are too high, consider what you can cut. Start with your monthly subscriptions and ensure you still use them at the same level as you intended. Can you find another company that can provide you with the same quality product at a less expensive price? Is there a specific expense item like education, office supplies, or equipment replacement that you can reduce or eliminate until you get back in the black?

If you need to generate more sales, determine how many monthly sales you need to become profitable. Can you do anything now to produce more sales? For example, can you offer a paid webinar or course that can quickly generate some income? Also, consider raising your prices by five to seven percent. Most of your clients probably won't notice this minimum price increase, but this strategy will benefit your bottom line by reducing your expenses by the percentage you raised your prices.

Spend time analyzing your monthly trends over the last twelve months to identify the problems causing your cash flow issues. These trends will let you know if there is an emerging pattern or if there are specific times of the month or year that this is occurring. Knowing what is causing your cash flow problems gives you the power to take control by taking action to solve them.

Solving this can be challenging and time-consuming if you try to do it alone. I can bring another set of eyes and offer solutions to your cash flow issues. Select a day and time that works for you, and let's see how I can help.  

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