The Secret To Generating More Cash From Your Business
By Admin | May 12, 2015
It’s not really a secret…it is just plain common-sense completely overlooked and here it is:
Pay Yourself First…Not Last!
Can you imagine how perplexed a Martian looking down from on high must be as he tries to figure out the logic of what happens every week in most small to medium businesses?
This is what he sees and tries to rationalize:
- A group of people line up at the end of the week to receive their wages.
- All of them are happy as they receive their pay and walk away to enjoy the weekend.
- The last one in the line doesn’t look happy…he looks worried. After he receives his wages (which is less than the others got) he goes back to work again.
“Funny system they have on Earth” the Martian muses. “The one who works the hardest and the longest is paid less and only what is left after the others have taken their share; the Earthlings must penalize hard work.”
Truly, this is the way it is for most small/medium businesses and its WRONG and it is UNFAIR!
I am strongly suggesting that as the business owner/manager you need to pay yourself first and not last, as presently 99% of business operators do … and regret.
You need to pay yourself first for these reasons:
- Your business owes you a decent commercial wage.
Are you presently getting this from your business? Yes ❏ No ❏
If No, be honest, who is to blame here?
- Your business owes you a decent commercial return on your investment.
Are you presently getting this from your business? Yes ❏ No ❏
Again, if the answer is “No”, who is to blame?
- And finally, in the spirit of pay yourself first, your business MUST provide for your future (because the Government won’t).
Is your business adequately providing for your future? Yes ❏ No ❏
Action Time
The first step is to recognize who is responsible for this situation…it’s YOU, you know this!
The second step is the “doing something about it” action step.
Let’s look at the return you are getting for the hours you put in…yes, we are talking about the wage your business pays you.
How much underpaid are you by comparison to what you could earn working for someone else?
If you don’t know, you should…so find out. Ring up a job placement company or check comparable job advertisements requiring people with your skill and experience sets.
Then, take the big step…pay yourself. That’s right…transfer this additional money to adjust your wages to commercial on a weekly or monthly basis into your personal bank account.
“What” I hear you state, “the cash flow of the business cannot afford this?”
Now it’s time for you to really earn your wage by trimming the sails and making the business more efficient.
Unnecessary or frivolous costs…cut them totally.
Surplus stock? Get rid of it…turn it back into cash.
People owe you money? Crunch them. Strictly enforce your terms of trade or make them tighter. Better still, collect cash up-front.
Think about special sales to shift slow moving stock.
Believe me, it really is amazing where you can find cash when you are put to the sword…and in this instance, the cause is just and noble.
It’s time…
To do the right thing by you and your loved ones!
Make the commitment to yourself, and me, if you need additional external support.
Email me at damien@parkergroup.biz and say “From today onwards I am going to pay myself first” and when you do, I’ll send you a FREE REPORT entitled “Seventeen Ways to Generate Additional Cash from Your Business”.
By the way, if you are deadly serious about re-dressing those three ways in which your business is robbing and cheating you blind; if you want to generate substantially more sales, profits and cash from your business; then, the absolute best starting point is my comprehensive, yet, easy-to-complete diagnostic entitled the Sales-Profits-Cash Business Diagnostic. You’ll find more details here.
Here’s to more sales, profits and cash from your business,
Damien Parker
Business Improvement Specialist
www.salesprofitscash.com
Follow my Tweets: @salesprofitcash
Recent articles in our management series include:
Seven Questions That May Change Your Life!
The Missing Link between Mediocrity & Success in Business
Why Coaching is an Awesome Management Tool
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