If you're constantly worried about cash and where your next sale is coming from, watch this short video now to learn how to shift your focus by answering these 3 critical business questions.
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To read the video transcript, click "Read More" below.
Hi, it's Q&A Thursday and today's question comes from John and he asks "I have just launched my business and sales are not coming in as fast as I had expected. I feel quite fearful about being able to keep my company running and I'm constantly awake of a night and not able to answer the question of where my next dollar is coming from and how I'm going to pay my bills next week. How do I push through my fear and paralysis and make some decisions to grow my business?"
Great question, John!
So many entrepreneurs face this challenge, not just when they're starting a business but at different times when their economy or their market changes. So the first thing to do is get comfortable with financial risk. As an entrepreneur, whether you're a solopreneur or a multi-million dollar business, you will constantly face this challenge of cash flow.
Now, whenever you’re worried or if you're paralyzed from fear, the first thing to do is to change your focus. If you're constantly focused on your lack of money, that's what's going to be around you all the time - is debt and fear. Change your focus and to do that I want you to focus on the three questions that every business needs to be able to answer in order for the money to flow.
The first is "How do we get new, highly qualified leads coming into the business every day?" This is our fundamental marketing question. Two - "How do we constantly innovate and keep meeting our customers' needs so they keep wanting to buy from us and keep coming back for added value?" - that's our revenue question - how are we getting sales, how are we bringing new sales from the same customers all the time. And three - "How do we drive down costs to increase profit and keep the business with money in the bank for innovating, for paying for ways to grow the business, not just keep it afloat?" - and that's our operational cost and expense question.
If you focus on answering those three questions, John, the money will follow and the paralysis that you feel from the fear of the lack of cash flow will start to subside and you will realize what's really driving your business and how do you keep getting cash flow and when you're feeling like things are not quite jelling in terms of the money, keep focusing on those three questions and it will all start to come together for you.
I hope that helps. I'm Trudy Murphy. You can find me at trudymurphy.com. Come on over to my site, leave me a comment, let me know what you think. Maybe you've got your own great advice to share on this topic, I'd love to hear from you. See you soon.