Jun 16, 2022

Canmore AB  – “Hey guys – I’ve got a problem. A client wants to back out of his contract. What should I do?”

Can’t read the full email – click here for the online version.

One of the groups I lead is for business coaches exclusively. Just like in sports, if the team isn’t doing well, even if it’s due to owner or players’ mistakes – the one who gets canned is usually the coach.

In last week’s meeting, one of my coaches was dealing with a client who said he wanted out of his contract. Basically, he wanted to fire the coach.

But why?

Did the coach not help find the business areas where it could earn hundreds of thousands of dollars in new profit and revenues? Yes, she did.

Did the coach not help set up and improve operational efficiencies? Yes, she did.

Was the client losing money? No.

Was the client broke? No.

So, what was the problem?

It turned out the client was panicking over a looming line of credit issue caused by allowing accounts receivables to balloon both in volume and age.

Remember, cash flow is the blood of any business. As long as cash flow is positive, month to month, you can actually “lose money” yet still remain in business. Amazon is proof of that.

But once your cash flow goes negative – no company can stay in business for long. The solution many companies seek is to improve their sales; increase their number of leads and improve their conversion of those new leads.

That works and is absolutely critical to grow a business.

There are, however, simpler and quicker methods.

In the case of my coach’s client – calling overdue accounts and asking for payment was all that was needed. Then creating and implementing a system so that future customer billings are paid promptly.

I’m happy to report that just one week after identifying and delegating a responsible person to handle this, the company had collected a couple hundred thousand dollars in overdue receivables. And the client is pleased he didn’t remove the coach and is now eager to work on the growth strategies they have identified.

To be successful in business, you need to know your numbers. Without up-to-date financials and the knowledge of how to interpret them, you cannot possibly manage any business to significant success.

If your accountant isn’t giving you this, then you will find our financial training for small business owners, extremely useful. Find out more here.
->https://realbusinessmastery.com/financial-training

Until next week,

Stay healthy and focus on profit!

- Hugh
The “Profit Accelerator” Expert

P.S. Did you know that even tiny improvements of 1-3%, in just 12 fundamental areas of your business could give you 50% and more improvement to your bottom-line? Test out my brand-new Profit Acceleration Simulator^TM  and discover the true impact of a conservative estimate of Profit Acceleration initiatives on your business and see for yourself. (https://hughtafel.com/simulator/)

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