I got together with my friends at Sherweb to make some videos to help IT consultants succeed in the tough economic times of 2020. Here's the first one:
Cash is King!
A few key notes:
NOW is the time to go collect money owed to you. Cash will disappear very quickly in the days and weeks ahead. Go get yours now.
You've heard the old saying that profit is the food of your business. Well, cash is the oxygen. You can live a long time without food. You cannot last long without oxygen.
Lesson learned: Get paid in advance for everything you can. If you haven't done this before, now is an excellent time to get started. Clients will understand, and you can continue this excellent policy from now on.
On a related matter, now is a great time to start taking credit cards, if you aren't doing that already. The first time you have to forgive ten or twenty percent of a debt in order to collect some money, you'll never worry about that 3% expense again.
Run cash flow reports. Know how much cash you have on hand at all times.
Examine where your money goes, and start making cuts now. Keep the "necessary" expenses and cut the things that are merely "nice" to have.
Finally, look at your payroll. Employees are the largest expense in any business with more than one person. Consider moving people to hourly labor instead of salaried. That allows you to reduce a few hours here and there and keep employees on the payroll, even if less than full-time.
No one wants to lay off employees, but you may be required to.
Money is always a difficult thing to talk about with employees and clients when money is tight. But if you don't address it right now, your business may suffer!
Sherweb's YouTube channel is here: https://www.youtube.com/user/SherWebOfficial
-- -- --
FTC note: I was compensated by Sherweb for the creation of this video, but received no compensation for this blog post.
:-)
Cash is King!
(YouTube: https://www.youtube.com/watch?v=HPbuVsMT2pc)
A few key notes:
NOW is the time to go collect money owed to you. Cash will disappear very quickly in the days and weeks ahead. Go get yours now.
Lesson learned: Get paid in advance for everything you can. If you haven't done this before, now is an excellent time to get started. Clients will understand, and you can continue this excellent policy from now on.
On a related matter, now is a great time to start taking credit cards, if you aren't doing that already. The first time you have to forgive ten or twenty percent of a debt in order to collect some money, you'll never worry about that 3% expense again.
Run cash flow reports. Know how much cash you have on hand at all times.
Examine where your money goes, and start making cuts now. Keep the "necessary" expenses and cut the things that are merely "nice" to have.
Finally, look at your payroll. Employees are the largest expense in any business with more than one person. Consider moving people to hourly labor instead of salaried. That allows you to reduce a few hours here and there and keep employees on the payroll, even if less than full-time.
No one wants to lay off employees, but you may be required to.
Money is always a difficult thing to talk about with employees and clients when money is tight. But if you don't address it right now, your business may suffer!
Sherweb's YouTube channel is here: https://www.youtube.com/user/SherWebOfficial
-- -- --
FTC note: I was compensated by Sherweb for the creation of this video, but received no compensation for this blog post.
:-)
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