Imagine if your business didn’t have to pay for subscription costs.
Quick video explainer:
Recently, I helped a client open a new bank account. This changed everything.
My client runs a software implementation business.
Deposits are paid before starting work.
Typically, for projects of $150k, $50k would be due upfront.
But when the cash is received, it sits in the checking account.
We opened a Business Savings account that generated 4% interest annually.
That one project’s deposit generated $4k in interest income per year or $167 per month.
We used extra cash to pay for:
Accounting – $30
CRM – $55
Project Management – $36
Payroll – $45
After this worked for one month, we created a process for all new projects.
Then, we were able to cover:
Internet – $120
Gsuite – $98
Phones
And much more..
Once we had clarity on the expenses, we were able to deploy the capital more effectively.
This allowed us to:
1) increase the marketing budget
2) focus on nurturing and closing the sales pipeline
3) accelerate the hiring plan
Having strong cash management and forecasts is important for survival, especially in this economy.
You need to take a proactive approach not to leave anything on the table.
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