10 avoidable mistakes that will destroy your cashflow:
TOO MANY OFFERINGS
Whether services or features, less is more.
With limited resources solving two problems simultaneously is impossible.
Diluted messaging leads to confused customers & removes perceived expertise.
Customers choose experts.
100% on 1 offer.
Whether services or features, less is more.
With limited resources solving two problems simultaneously is impossible.
Diluted messaging leads to confused customers & removes perceived expertise.
Customers choose experts.
100% on 1 offer.
UNCLEAR RESPONSIBILTIES:
Record roles in an operating agreement.
It prevents future arguments & creates clarity regarding who is doing what.
Job functions should align with strengths & desires.
Without a big salary, competence & passion are fuel.
Record roles in an operating agreement.
It prevents future arguments & creates clarity regarding who is doing what.
Job functions should align with strengths & desires.
Without a big salary, competence & passion are fuel.
TOO MUCH DEBT
Without investment, credit cards & high interest loans seem attractive.
They're not.
Financed working capital is long term pain disguised at short term relief.
Don't do it.
Stay lean & grow profitably with customer acquisition.
Without investment, credit cards & high interest loans seem attractive.
They're not.
Financed working capital is long term pain disguised at short term relief.
Don't do it.
Stay lean & grow profitably with customer acquisition.
TOO MANY MARKETING CHANNELS
Attention is like currency.
More is better.
But, the world is noisy & being loud is expensive.
Bootstrappers can't fund massive omnichannel campaigns.
Instead, go deep on one.
Maximize creativity & conversion.
Attention is like currency.
More is better.
But, the world is noisy & being loud is expensive.
Bootstrappers can't fund massive omnichannel campaigns.
Instead, go deep on one.
Maximize creativity & conversion.
LOW PRICES
The ideal future is realized by bridging today & tomorrow.
Low prices force a short term survival focus.
Without time to plan, the future stays some distant dream.
Low prices kill growth & attract subpar customers.
Raise prices!
The ideal future is realized by bridging today & tomorrow.
Low prices force a short term survival focus.
Without time to plan, the future stays some distant dream.
Low prices kill growth & attract subpar customers.
Raise prices!
CUSTOM SOFTWARE
Service companies should use SaaS as long as possible.
Custom systems will not yield tech valuations, but they do add line items that can't be eliminated.
Dev support & maintenance.
Unless you're a true SaaS company, ditch in-house tech.
Service companies should use SaaS as long as possible.
Custom systems will not yield tech valuations, but they do add line items that can't be eliminated.
Dev support & maintenance.
Unless you're a true SaaS company, ditch in-house tech.
NON IDEAL CUSTOMERS
Servicing non-ideal customers creates resentment towards them & the business.
Its an endless cycle of adding costs to service unprofitable jobs.
Intentional growth > Any growth.
Never add costs to service specific customers, it's not sustainable.
Servicing non-ideal customers creates resentment towards them & the business.
Its an endless cycle of adding costs to service unprofitable jobs.
Intentional growth > Any growth.
Never add costs to service specific customers, it's not sustainable.
PROFIT > CASH FLOW
Profit can be manipulated, but cash flow can't be.
Vendors & employees don't get paid with profit, they get paid with cash.
Learn the difference & make collection the top priority.
Profit can be manipulated, but cash flow can't be.
Vendors & employees don't get paid with profit, they get paid with cash.
Learn the difference & make collection the top priority.
LACK OF SALES PROCESS
Strategically identify the stages of the buying process.
Without them, all deals feel final as a "win" or "loss".
Most sales require nurturing & follow up.
Lacking a plan, many future sales are lost.
Strategically identify the stages of the buying process.
Without them, all deals feel final as a "win" or "loss".
Most sales require nurturing & follow up.
Lacking a plan, many future sales are lost.
DISCOUNTS
There are 3 outcomes:
1. Attract price shoppers
2. Offend past customers
3. Prospects wait for sales
All are detrimental to current & future cash flow/ relationships.
Frequent sales signal desperation & result in low margins - which doesn't help anyone.
There are 3 outcomes:
1. Attract price shoppers
2. Offend past customers
3. Prospects wait for sales
All are detrimental to current & future cash flow/ relationships.
Frequent sales signal desperation & result in low margins - which doesn't help anyone.
Every entrepreneur makes some or all of these mistakes.
I know I have.
But the key is to learn quickly to avoid making the same mistake twice!
I know I have.
But the key is to learn quickly to avoid making the same mistake twice!
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