3 Ways to Increase Cash Flow

3 Ways to Increase Cash Flow

Over the weekend, I spent some time listening to several audio
programs created by some of my mentors about increasing your cash flow. Cash flow is one of the most important aspects of business. If you don't have cash flow, it's very hard to stay in business for even a small length of time. There are 3 ways to learn about cash flow: go back to school and earn your MBA, trial and error, and find a mentor and learn from those who have successfully built and run 6 and 7 figure businesses.

While I'm not looking down upon getting your MBA by any means, knowledge and education is key growing personally and professional. But, firsthand experience can sometimes be the best teacher.

Through each program, I found three key underlining themes to help you increase your cash flow.

1. Raise your rates.

When was the last time that you raised your rates? This month? This year? Five years? Never? Every year, I have a bi-annual review. I sit down, and I analyze my coaching fees, my product sales, and my affiliate earnings.

When looking at my coaching fees, I write down at least 10 ways I am helping my clients for each 10 ways that I can say I've improved my clients business, I raise my rates 10%. For example, if I can write 20 ways that I've helped my clients grow their businesses, I raise my rates 20%. I'll warn you now, the first time you raise your rates is probably scarier than the day that you started your own business.

Trust me, your clients see the value in the services you provide and they will stay with you.

Next, I look at my product sales. I determine which products are my best sellers and which ones are my 'no sellers'. I take my lowest selling product off the market, and I critique it. I find out what needs improvement, what needs re-edited, and what just needs to go. I can be a little heartbreaking to completely toss an unnecessary product. However, when you do, you will feel relief. You no longer have this 'unwanted' product, and you can tear it apart and create another best seller to add to your mix.

Finally, I look at the products that I've been promoting as an
affiliate. The products that I promote have to meet a long set of
criteria before I will recommend them to my clients. That is why I only have a select number of products that I recommend, and they do not change often. Once I start working with a company that treats me well, I am very loyal. However, businesses can change rapidly, and I want to be offering the best products and services to my clients. So, I determine whether or not each current affiliate still meets my high standards. If not, I look for a new product or service to fill the void.

2. Create multiple income streams.

More income streams generally mean more income. Are you only selling private coaching? Even when you maximize your time, you're leaving a lot of income opportunity on the table for someone else to earn.

Maybe someone can't afford your $1,000/month private coaching session, but they can afford a $497 home study program in 3 easy payments. Maybe they can only afford your $47 audio program about creating information products. People at all income levels want to better themselves each and every day. Never lower your prices. Offer your products at several price points to meet more demand for your information. Audio products are a great way to boost your income, and depending on the length, you can create an audio program in less than 2 hours. For more information about how to create your own audio program, click here to get a copy of my interview with Mike Stewart (he's the king of audio programs), plus my complete step-by-step guide to creating audio programs and a few other bonuses.

3. Decrease your expenses.

The easiest (and yet hardest) way to increase your cash flow is to decrease your expenses. Take a look around your house, your garage and your business. Where is your biggest drain on income? Do you really need that extra jet ski for when your friends come over? Have you replace those energy draining appliances lately? Do you really need to expense a $5.00 extra light latte every morning? Little expense add up as quickly as big ones do if you're not careful. I'm not telling you to deprive yourself, but really think about how you're spending your hard earned money.

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Self-made entrepreneur Jenna Drew, "The Savvy Marketing Queen" is devoted to empowering women through entrepreneurship. To learn how to create the wealth you dream about and while enjoying your life now, register for her free weekly articles at http://www.savvyandstrongwithjenna.com.