Have you ever heard the phrase, “cash is king?” It’s a popular phrase that goes around the business world meaning cash is everything – the most important part of your business. My question is if cash is king, where is his queen? What does this motif say about acquiring healthy cash flow and business health?
He is mysterious, and dare I say arrogant. I don’t think this is an accurate representation of what cash really is.
If it wasn’t obvious enough, I am a female business owner and work with clients all over the Phoenix area. I have found myself saying “cash is king” on multiple occasions throughout my years of business ownership, but here’s to turning over a new leaf and doing away with this phrase. Here’s why:
It’s planned. It’s measured and tested. Even the smallest businesses can do this. Achieving this starts with where you are right now. Take your revenue and consider all of your streams of revenue. If you are a consultant, your revenue might look something like 10 regular clients that pay $400/month. This means that your income is $4,000 per month.
At this point, there are a few tasks you need to complete. The first is deciding on your goal. Would you like to make more money per month, perhaps $10,000/month? Figure out how clients you would need to achieve that goal at the rate you’re going. (hint… it’s 25 clients).
Next, ask yourself how you can deliver the same high-quality services when you have 25 clients. What processes did you have in place when you had 10 customers? Whatever effort that you put in previously, you will need to multiply by 2.5.
To get those 10 clients, let’s estimate you paid $1,000 in marketing fees. When we add in the extra 2.5x effort, that runs your marketing up to $2,500.
There are many ways to bring in more revenue even outside of this equation, like offering add-on services to current clients or finding other more affordable and effective ways to market. The point is, cash is attainable once you sit down and plan your income.
Queens take dominion and control over results and income. It doesn’t need to be mysterious. It’s a simple calculation and a plan of action.
Stay tuned for more wisdom from me, Gabby, that will help you build your business back up and find true success. Remember: if cash flow is king, be the queen. Are you a Phoenix business? We’d love to connect with you!