Positive Cash Flow – False Sense of Security?

Reading Time: 2 minutes

By: Ruth King


Some of you will have a great cash influx this summer, or this fall, or this winter, lulling you into a false sense of security.  Unfortunately, for some of you, that phenomenal cash influx will all evaporate at the end of the busy times when you pay your suppliers for the materials you purchased.

Avoid this frustrating situation by doing these five things when it is busy:

  1. Raise your prices by at least $25 an hour and preferably $50 an hour or by at least 10% – Most customers won’t see the difference…your checkbook and bottom line will!


  1. Save the additional revenues in a savings account. You don’t have to transfer the money every day.  Once a week run a report from your software to determine the deposits. Transfer the additional dollars into your savings account.


  1. Don’t do stupid stuff. No callbacks and no warranty calls. Yes, we are all human.  When you are busy sometimes you get sloppy.  If you can’t afford to fix a problem when it is slower, then you definitely can’t afford to fix a problem when you are busy.


  1. Ask all new customers to enroll in your recurring revenue program and renew all of your clients who have not renewed in the past 18 months. Customers understand the value of what you do much more when you are busy and they need you! It’s the perfect time for someone to enroll in your recurring revenue plan.  And a team member should reach out and renew all plans that have expired in the past 18 months.


  1. Save 2% of all deposits made. Like #1, you won’t miss the money right now because you have enough cash to fund operations. You’ll appreciate the savings in slower times.



For more great business content see here.

Ruth King is known globally as the “Profitability Master,” and is a a thought leader in entrepreneurship and business. Her books have been recognized as among the greatest in numerous industries. Learn more about all her business activities here

Share This:

Leave a Reply

The reCAPTCHA verification period has expired. Please reload the page.