You see other businesses folding, laying off workers, or maybe you were the one laid off.
Now you could allow yourself to slide with the masses towards a black hole of fear and paranoia, dependent on the federal government to bail you out.
Or you could do what a very small percentage of the population does.
In this article, the owner of Troyer Websites of Texas, reveals the top 6 powerhouse rules 2% of the population are using right now, to cash in and not only survive, but thrive in the 2020 economy.
Note: Although geared especially towards business owners and entrepreneurs, "Rules to make more cash" applies to all sectors of the economy, and can be applied whether you are an entrepreneur or work for another business.
Rule #1. Vision
Think of it this way. If you decide to go to Wisconsin from Texas, how would you go about it? You would make sure your car is road-worthy. If you fly, you'd get your airline tickets purchased. You'd make plans - When are you going? How long are you staying? What would you need to take along?
It's the same, whether you want to earn more business revenues or just a few extra-rainy day dollars.
You need a vision first of all.. everything else builds on that.
Don't know what that looks like? No worries - In the next 5 rules, I will break it down to get your mind spinning in the right direction...because...
"Nothing becomes dynamic until it becomes specific!"
Rule #2. Simplify Mercilessly
There is a cardinal sin committed by many individuals and businesses large and small - They over complicate their systems and processes and waste tons of time and resources.
Why do they (we) do this?
For the simple reason that there's plenty of cash flow to cover it. When things get tight, however, applying a tourniquet to the cash bleeding becomes essential.
Questions to ask yourself are -
- Where can I simplify the processes needed to produce [your product or service]?
- What can you rearrange to achieve the same results with less overhead?
- What extras and bloat can I excise to achieve a sharper focus on the bottomline?
Now is not the time to get fancy.
Now is the time to act swiftly and decisively, to lighten up, eliminate waste, and maximize efficiency and productivity.
Rule #3. Sell Your Extra Crap Stuff
Hand in hand with Rule #2, go, find and sell all the extra stuff you have laying around gathering dust. Again, many individuals and businesses tend to accumulate things that then get shuffled around but never used for whatever reason.
A good rule of thumb is, if its in your business and isn't paying for itself, or costs more than its worth, get rid of it. If its in your house or garage, and you haven't used it in more than a year's time, get rid of it.
Use the extra cash generated, to pay down debt, or build up a cushion in case of emergency.
#4. Diversify (Your Cash Income)
Now is the time to get creative, especially if you're income has drastically slowed or stopped..
➡ What other markets can you tap into with the tools/business you already have?
➡ If the lock-down around COVID-19 shuttered your doors, what are some ways can you work around it while still complying to local laws? Curbside delivery? Virtual or online services?
➡ What other products or services can you offer to generate sales in another market place?
➡ What side gig can you start up to avoid depending on only one source of income?
The Goal here is to maximize the streams of income, however small, coming into your coffers. You won't get blind-sided as quickly if one dries up, and you'll help limit your financial risks as you'll see in the next step...
#5. Limit Risks
This is something every wise business owner does - even in a good economy. In a downturn, now it's even more important!
How to apply?
- If you're in debt - especially consumer debt - GET OUT of it ASAP. The less you owe, the smaller chances that your assets will be seized. Find and apply a simple debt payoff system such as this one.
- Never invest more than you can bare to lose. If losing your investment completely means you're going under, Don't do it! Instead focus on the assets and abilities you already have.
- Live well below your means. Cut business and personal spending like you're eliminating the last Corona germ on the planet.
And Now Last, but not least...
Rule #6. Hidden Gold - Client Followup
As obvious as it seems, many companies are practically ignoring this literal hidden goldmine.
Your clients are already invested into you. They already know you, like you, and trust you with their dollars.
A simple, friendly phone call can yield easy repeat business, and better yet - personal referrals.
Having a long list of personal referrals built up, provides a thick "Insulation" against economic recessions by guaranteeing you always have someone to talk to.
This is by no means an exhaustive list.
Its intended to inspire an active offensive, a battle plan for small business owners and entrepreneurs willing to take full responsibility for the welfare of their families and businesses.
Ultimately the success of your business lies with you and the skills you possess - in your own ability to produce, and your skills with time, and relationships.
“Ultimately, the success of your business lies with you, and the skills you possess.”
Who do you know that needs to read this?
About the Author
Eric is the owner of Troyer Websites of Texas, a full service digital marketing agency in east Texas. He is passionate about empowering other entrepreneurs to build their businesses online. If not designing a website, or writing copy, he can generally be found outdoors, on a motorcycle or playing music with his friends.