Listen to the Episode Below:
Like a leaky bathtub, you can keep filling it all you want … but if the drain isn’t plugged properly, water will continue to seep out. So how’s the bottom line in your business? Are you able to retain any of the cash that flows in? Or is it all gone (and then some) by month-end?
In this episode, profitability consultant and CPA Laura Sabbagh shares her top tips for plugging the money leaks that show up in service businesses, so you can keep more of your cash and build for growth!
Plugging the Money Leaks that Reduce Your Business Growth…
- Calendar the natural peaks and valleys in your business. For example, if you’re an accountant, you know what March and April are like! Every industry has its own flow, so map out when you’re more likely to be spending more than you’re bringing in (and vice versa).
- Evaluate–don’t just raise–your pricing. Consider your overall goals: do you want more customers at a lower price point, or fewer customers at a higher price point? See what your competitors are charging. If you’re too busy, that could be a sign you’re not charging enough.
- Get cash in your company coffers sooner and more frequently. For example, set up monthly payment plans for your clients with recurring automatic checking account or credit card withdrawals. Also, consider billing twice monthly instead of only at the end of the month.
- Identify and plug your money leaks. Put all of your auto-billing accounts on one credit card so you can track what you’re paying for more easily. Scrutinize everything you’re paying for to be sure you’re not paying extra fees. Price-shop for items you buy both occasionally and regularly. Talk to your accountant about budgeting.
Laura Sabbagh knows how business owners can keep more of their money. For more great insights, listen to this episode of Cash Out BIG!
Laura Sabbagh, CPA, Advanced Certified QuickBooks ProAdvisor, Xero Partner and Sleeter Group Certified Consultant, is passionate about helping small and mid-sized business owners earn the income they need to live the quality of life they want. She offers profitability consulting services, outsourced CFO-for hire and Controller services, bookkeeping, tax preparation, QuickBooks help, budgets, cash flow improvement, and much more. Her specialty industries include professional services, manufacturing and distribution, construction and income producing property.
Laura graduated cum laude with a BBA in Accounting from Bernard M. Baruch College, CUNY. She is a member of the American Institute of CPAs, Moxxie Networking, The Sleeter Consultants Group, Long Island Business Associates, and CIBS.
Words of Wisdom:
“If you want to stay in business, you have to make sure you have enough cash” ~ Laura Sabbagh
Learn more about Laura Sabbagh, CPA:
Be sure to review us on iTunes!
Can’t listen in every week? Get the Executive Summary for each Cash Out BIG podcast delivered right to your inbox!