Obama agrees Small Business is Big Business
While driving from Vancouver to Kelowna late at night I ended up tuning into Bloomberg Radio and sure enough what comes on… a discussion about the importance of small business and how small businesses are the backbone of the economy. Very true for the entrepreneurial USA and also very true for Canada, especially BC, the leader in Small Businesses in the country.
The major problem these days is cash-flow. Banks are still not lending enough and we need to see a constant flow of cash to get this economy recovering faster. Passion fuels the small business and anyone that has ever owned a small business will tell you that cash-flow is always a major concern. In this economy however it is even more so. With banks cutting back on lending less money is spent and therefor less money is made. Corporations are big business for small business as well, so as you see downsizing and cost cutting with major corporations, small business suffers. Now it’s not all doom and gloom. Corporations also do turn to small business in recessionary times. Overall however, cash-flow is a major problem.
On November 24th, 2009 President Barack Obama has asked Treasury Secretary Timothy Geithner and Small Business Administration administrator Karen Mills to convene a conference of regulators, congressional leaders, lenders and entrepreneurs to come up with additional steps to improve the flow of credit to small businesses looking to expand.
Obama has said it time and time again, Small Business is Big Business and fuels the economy, and better yet, fuels spending! aka Cash Flow.
A simple demonstration of cash flow…
A fellow Marketing Consultant and Small Business Coach from Kelowna shared an interesting approach to emphasizing the importance of cash flow. At a seminar of 300+ people, the speaker handed out a $100.00 bill and asked the room to pass it on, going from row to row, until it went all the way around the room. In addition the speaker asked that everyone reach into their wallets and pass on a few dollars themselves. Some peopled sent of a few dollars, others passed on $20 or more. As the money shifted from person to person, more and more people started passing money around. Eventually all the money made its way to the front where it was counted. Several hundred dollars had made it in a circle and after about 15 minutes of circulating all the cash around the room, everyone was asked to take back what they put in. (Most of the money was accounted for). The speaker was made the point that cash flowed between hands, and everyone at one point had many times more of what they contributed in their hands and everything they circulated made it back to their hands. A great example of the importance of cash-flow and how all of us benefit directly and in-directly when money changes hands.
What can you do to improve cash flow?
There are only two ways to increase your cash flow. Spend less and make more. Better systems, time-management, and understanding your break even point help you to spend less. While marketing, lead generation, and increased sales increase your bottom line putting money in your bank account.
The biggest challenge with cash-flow…
is that you are either afraid to or unable to spend money to generate business. It comes down to whether you can afford to spend money and whether you’re going to get results. Lets tackle the first one. Can you afford not to do it? Can you afford not to spend time, money, and effort in drumming up new and repeat sales? Lets face it. If you’re not busy now, you’re not going to get any busier by doing nothing. In all honesty you might want to consider closing shop or getting a job. You need to come up with time & money to invest in your business. As for results, you need to be strategic rather than tactical. Don’t go for the first marketing tactic someone proposes. You need to be smart about your marketing investment. You need to get the bigger picture and look at finding a coach or mentor whose footsteps you can walk in and learn how to become more effective. Sure, you could just sign a cheque and outsource everything, but will it get you the results? Do you really trust anyone else but yourself to run your business? You wouldn’t just hand over your pin-code and bank-card to just anyone right? On the same token you will always need to be involved in your business to a certain extend. What I do is ensure that you maximize that time. That you have all the know-how and can spend less time in your business and more time on your business. If you’re looking to increase cash-flow, start by making marketing a priority in your business. I can help. Be sure to check out one of my Marketing Seminars or just call me at 604.435.4459 and I’ll give you a free consultation to point your business in the right direction.
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