While some new business owners face the issue of not enough customers, others face the issue of too many customers/clients. Both are serious issues and must be dealt with carefully. There are many lists helping to find new customers/clients. Here is a list of 10 ways to deal with a rapid influx of new customers. The goal is a steady flow of just the right customers/clients.

1.    Know the customer/client that is right for your business. Get really clear about your ideal client or customer so you can be selective when there are too many business opportunities and you do not have time to accept them all.

2.    Have a specialty for which you are known.  Specialize so that you get really good at what you are doing. You can then service more customers/clients quickly.

3.    Eliminate clients who drain you.  If a client/customer takes too much of your time, that client/customer is costing you money. Look for ways to predict who will be a time- consuming customer/ client and avoid them. Find ways to eliminate those customers/clients.

4.    Create systems to support you. Examples are: a good business development system* that provides you with the customers or clients you need, a good bookkeeping system to keep track of expenses and revenue, a customer/client tracking system with a database of customers/clients names, addresses, and other useful information.
*Even though it may seem like you have too many customers at the moment, that flow will stop unless you keep marketing.

5.    Off load routine tasks to others.  What are the repetitive tasks you hate to do but know are necessary to run your business? Many administrative tasks are easily taught to a support person and by doing so you make more time in your day to see customers/clients.

6.    Leave time in your day for reflection and self-care. Doing the tasks of the business is of course necessary. Many get so focused on their task lists that they never have time to take a strategic look at the business. Putting aside time every week helps you to find more ways to work with the customers/clients with whom you want to work. Leave some time too for taking care of you. This means making time for doctors’ appointments, hair care, massage therapy, exercise, meditation and anything else that provides for your health and well being.

7.    Set firm boundaries. Don’t allow a client/customer to play on your sympathies and convince you to do something you know you should refuse (i.e. too time consuming, not your specialty and/or for free). Doing favors for others is not a favor to you!

8.    Raise fees.  If all the clients/customers coming to you are your ideal clients/customers, then it is time to raise fees/prices. This will sort the clients/customer that are willing to pay more for your services and those who are not. Revisit your fee/price structure at least once a year.

9.    Refer to others. When clients/customers are not your ideal clients/customers or when your ideal clients/customers cannot afford your fee, have a list of other business owners to whom you can refer.

10.    Hire someone to help you do the work. Once you have off loaded all the repetitive tasks it may become necessary to hire another worker who does the work that you do, to work with you. Get professional help for the functions that are not your best; do that which is your strongest skill.

These 10 tips should help you grow your business at a rate that is controlable.  Not too fast, not too slow.

Make it a great week!

Tags: business growth, colorado cfo, customer growth, hyper growth

A recent edition of the Wall Street Journal contained the following article, “Credit Scare Spreads in U.S., Abroad, Loan Terms Tighten for Smaller Businesses; Recipe for Slower Growth.” I am not an economist but perhaps like you, I have noticed that “recession” has become an incessant beat. If most of the weathermen are predicting rain it might not be a bad idea to bring along an umbrella. Likewise, warnings of bad financial weather should encourage all businesses to closely examine their controls over cash flow (spending, collecting and borrowing).
What is cash flow?
Simply put, cash flow is the result of netting all sources of cash coming into the business against all sources of cash going out of the business. It is not uncommon for businesses to experience peaks and valleys of cash activity, as the alignment of cash coming into the business is not aligned with cash leaving the business. Much as cars need to have the tires checked and be realigned at certain intervals, so too does a business’s cash flow require watching and occasional realignment. For a quick financial history of your own company’s cash patterns, try tracking the deposits (cash sources) and paid checks (cash uses) from your corporate bank account/accounts over the last year.
What you need is a barometer.
There are useful financial ratios like the acid-test ratio, day’s sales outstanding, receivables turnover, to name a few, that help identify the need for cash management action. However, these ratios are largely based on historical information. What is needed is forward looking information. A cash flow projection highlights potential cash leaks, peaks and valleys and surpluses allowing the business owner to make proactive decisions.
So how is a cash flow projection done?
The most important thing is to do it monthly even if by hand. There are many financial programs that contain excellent cash flow budgeting modules. Even Excel spreadsheets work just fine. The basic structure of the projection worksheet is fairly common. It begins with the actual cash on hand and then adds the cash receipts of the business whether from cash sales, collections of receivables or cash supplied by lenders, owners or other investors. These two amounts then provide the total amount of cash available to the business to operate the business (pay operating expenses), make investments (buy new equipment or make acquisitions) and pay lenders, pay dividends or withdrawals for the owners or partners. When the above amounts are deducted from the total amount of cash available, the remainder is the projected cash on hand for each month. Once done, this analysis can be easily updated.
Your updated Cash Flow GPS
With new highway construction, it is not long before GPS software is out of date. Many commercial systems include continual updating. The completed cash flow projection provides the business owner with a continually updated 12-month map of his cash needs. Months that produce excess cash (positive cash flow) can be used to “fund” those months when there is a shortfall. Sometimes cash shortfalls are larger than expected or occur for a period of time (like the start-up of the construction season for contractors). When this happens, some form of financing is required whether from the owner or a lender. The projection allows the owner to plan for any required cash infusion. This can save interest costs and transaction fees. A solid cash projection also helps ensure that the business owner has the necessary financial resources to take on new work and replace equipment. The projection is a useful tool to demonstrate to a prospective lender the amount and timing of cash requirements as well as the prospects for future cash flow to make loan payments.

Need Help?
I am skilled at helping business owners manage their cash flow. Our consultants are trusted business advisors who are seasoned at assisting a company create cash flow projections. We can train your staff to use proven methods to project future sources and uses of cash. Cash excesses or shortages are usually somewhat predictable.

Tags: Banking, CASH, Cash Flow, financial reports

THE ROLE OF CEO is be a lonely one. It is too easy to be surrounded by good people but still feel there is no one with whom to share your fears and concerns, or brainstorm new ideas and strategies.

People from outside a firm can often ask seemingly simple questions that illuminate an issue or prompt change. Initiatives from other industries can help spark ideas and generate new business models. Often friends and family give all kinds of advice, byt most have very little experience that can help you. For any new and growing company, securing the right external advice and support is fundamental to success.

Too often, senior personnel keep problems close to their chest so as to avoid worrying staff. However, this approach can cause additional stress and make a small problem seem larger than it really is. It is also easy to become entrenched in a situation where it is not possible to see the wood for the trees and it becomes difficult to think of solutions or innovative ideas. Getting the right advice. There are five simple steps that can influence the quality of the advice you receive:

Find the right accountant – The mere fact that someone is completing your tax returns does not mean you are getting the best out of your accountant. A fast-growing enterprise needs a financial advisor who can plan ahead and proactively suggest ways to make strategies financially possible. Not to mention, I have plenty of contacts and can help my clients find a great bookkeer quickly.

Select the most appropriate professional for individual tasks – A common mistake is to appoint a lawyer or accountant to handle all legal or financial matters. It is wiser to pick and choose specialists for different functions. For example, payroll differs from corporate finance, while drawing up employee contracts does not require the same skills as protecting intellectual property.

Assess your banking needs – A conventional retail bank can provide an excellent business service but if your growth plans are more aggressive, then it would be beneficial to enlist the skills of a corporate banking advisor. The key to success is in finding a service that supports the company you want to become, rather than the one you are now.

Work with people you like – In business, it is often necessary to cooperate with individuals whom you may not like or respect. However, when seeking advice on the future of your firm it needs to come from someone you trust. It is worth spending time to find professionals you ‘click’ with and who complement your company. Ask yourself whether they understand and have an affinity for what you are trying to achieve.

Don’t be too proud to ask for help – Never see it as a failure to ask for guidance. No one is infallible, and having people to support you can make the journey to success so much smoother. Nowadays, there is a proliferation of mentoring schemes, where experienced specialists are on hand to offer guidance and information on a range of topics. It is important to remember though that a mentor is not the same as an advisor; their role is to question and motivate rather than to offer instant solutions. Even if suggestions are never acted upon, their value is in helping to shape an alternative strategy.

Summary – The Need For Experience – The discussion above only touches on the need for professional advice that can turn your business into a success.  We are real-world experts in managing working capital, building the infrastructure to scale your business and working with companies at the highest levels of America’s fastest growing companies.  It is what we do with hundreds of clients every day.

Marty Koenig
Your Colorado CFO

Tags: Business coach, CASH, Cash Flow, CEO, colorado cfo, FUNDING