5 Money Leaks in your Business
We’ve all heard the saying “Time is Money”. And it’s true – if you don’t manage your time wisely, then you won’t be as productive and you won’t be bringing in the money. However, wasting our time on non-essential business activities is just one of the many ways we leave money on the table.
Are you leaving money on the table? Here are 5 money leaks to watch out for in your Business:
How are you spending your time + energy? Are you focusing on activities that are helping you generate revenue or leaving you feeling swamped + exhausted? One of my clients was meeting with all of her clients in person and spend hours driving back and forth on the highway. I suggested that she only meet with the clients who live close by – as this was important for her – and Skype with all the other clients. After implementing this strategy, she now has a lot more time to focus on growing her business + to spend time with her children + to pursue her creative projects.
2. Clients who drain you
Are you currently working with clients who are sapping you of all your energy? Sure, they’re paying you but if you’re feeling drained when working with them, you’re not putting your best talents to use. It’s better to let them go and find clients who are a better match for you. I’ve seen it time and time again where many of my clients were afraid of letting go of their “not-so ideal” clients. Then days after doing so, they signed up new clients who they absolutely connected with and who loved working with them. It was a win-win situation for everyone!
3. Clients who owe you money
Do you have any past or current clients who owe you money? It’s important to have a system in place so you know what to do if this happens. Do you have an agreement that specifies by when you want to be paid? In the very beginning of my business, I had one client who owed me money. I handled this sticky client situation by sending her 3 polite e-mails, then following up with phone calls. I got my money back.
4. You owing money to somebody else
You want to be paid on time and it’s good for you to pay other service providers on time too.
5. Bartering/ Discounting your services/ Charging Low fees.
This is a huge money leak for many entrepreneurs + creative freelancers. When you undersell your services, you end up having to work a lot more to make money. You deserve better than that. If you’re self-employed, you very likely chose this route so that you could work your own hours, make more money and have more freedom, not to work longer hours and make less money than in your previous job. If you haven’t raised your fees in a while, it would be a great idea to do so now.