The communication game is changing faster than we can keep up with it. It used to be that we could send an email and expect a response in a day or two. We could send a voicemail and assume that if we got no response in three days they weren’t interested. We even trust that the good old USPS paper mail delivery would deliver in 2 days local and 5 days cross country.

Now we don’t know if the message was even delivered. Even with good spam filters, seemingly reliable voicemail, and USPS it seems more stuff is delayed or lost. There is a local municipality four miles away that my clients routinely tell me they received a letter or invitation from me three weeks late. Several people in the same area report the same thing, so I know it’s not just ignoring the mail. Emails get lost in the sea of daily incoming backlog. And even voicemails occasionally take hours to get through.

Our communication systems have generally been so reliable that we take for granted they’re working. But sometimes they don’t and that’s why you need to follow up if you want to make the sale, provide good service, or just stay in touch.  But how do you draw the line between persistence (looking virtuous) and pest (looking desperate or unprofessional)?

Here’s 5 ways to be persistent without being a pest:

1. Don’t assume that someone is not interested just because they don’t call you back. I have had many instances where I reached someone on the fourth try, after leaving three voicemails only to have them thank me because they didn’t get back to me yet. More than likely those people went on to do business with me.
2. Follow up important emails, incoming or outgoing, with a voicemail. These days people have three or four email accounts beyond their primary one. Sometimes they don’t check those secondary accounts for days. So you may have sent it to a slow response email box (which may have been the primary when you wrote it down originally).
3. Sadly, the same goes for a fax (yes, people do still send those).  Just because you got a confirmation that the fax went through, they may not have gotten it.  Fax machines are in distant rooms shared by others.  The faxes get picked up inadvertently by someone else.  Sometimes it’s sitting in memory waiting for paper.  So call and leave a voicemail saying that you sent it.
4. Leave more than one voicemail. We think voicemail is reliable but it seems to be getting less so as time goes on. When someone asks a question and you want to answer, but you only get their voicemail, leave a message. Try every couple of days and leave another voicemail. Make sure the total time span is more than a week because the person may be traveling. If I really want to talk to the person and let them know I’ve been following up, I’ll call at different times of the day.
5. Tell them that you value being reliable and that’s why you are following up multiple times. Say something like, “I pride myself in being responsible so I am trying again. If you have already gotten your answer and don’t want me to follow up, drop me a voicemail or email.” It may seem obvious to you that you have a high level of commitment just because you did follow up, but stating your commitment is much more powerful.
6. Keep it light and use it as a way to build a better relationship. Say something friendly like, “Hi, I was just trying to get back to you and get your questions answered so I thought I’d try again.”
7. I try to leave no more than four voicemails before switching to one or two emails and vice versa. Sometimes switching communications gets the response.
8. The book “The 22 immutable Laws of Marketing” claims that the true battle for territory is the battle to position yourself (the brand called “you”) skillfully in the front end of the client’s mind. I try to make part of my brand “persistently reliable” because most of my clients and friends are as busy as I am.

Lastly, 80% of sales are made after the fourth contact, so don’t be part of the 73% that stop after two contacts. See my other post Follow up is Free and Profitable on that topic.

Tell me what you do to follow up persistently without being a pest? 

Now stop reading about persistence without being a pest and start doing! Let’s create your personal profit strategies for growing profit. Call small business profitability coach Merra Lee Moffitt, CFP®.  She can be reached at, 888-920-2030 or by email at merralee@captureprofits.com.

“Seek new clients, seize better income, capture more profit”

If you are searching for techniques that you can replicate to get sales from LinkedIn, here are some success examples. These specific tips come from small business owners already experiencing profitable results using LinkedIn. I’m not talking about getting a job, although I did find numerous examples there too. These examples and the hints & tips they include are all people who’ve stated that they successfully got projects and sales from LinkedIn activities.

“I’ve made millions of dollars through LinkedIn” states Jeff Ragovin, Buddy Media. He says it’s important to find the right person at a company. For Jeff, doing just that has netted his company “over two to three million dollars”. He’s done this by reaching out to the right person with a valuable proposal. Jeff says they’re more inclined to reply when approached via LinkedIn, because “they already have the opportunity to look you up … and maybe even see in your network where you have 14 recommendations. So there’s trust.”

Xurxo Vidal indicates in his comment on the above post, “I’ve found that participating in LinkedIn Answers by answering questions in my field of expertise has allowed me to help others while showcasing my knowledge of search marketing in front of a wider audience. This one activity alone has provided me with tremendous results by allowing me to connect with interesting people and by directly bringing in new contracts.”

Steven Shimek (Ruder Finn), used LinkedIn to build client relationships by following up over 20 leads that led to business worth over a quarter of a million dollars! He says, “People like to help people by human nature and they want to see their friends and associates get up to the next level”. He uses LinkedIn as a litmus test to qualify leads for his business development practice and explains his philosophy in a video. “LinkedIn isn’t just about networking. It’s about your friends, clients, and associates being a resource to you. I like helping people because they’ve all helped me!” He is also a strong believer in Answers. He recommends answering questions in ways that share and showcase your company’s skills.

Ron Lissak talks about LinkedIn as a research tool and its ability to unearth hidden connections through the power of common contacts. He claims over $300K in sales from his LinkedIn efforts.

Although many of the stories about sales from LinkedIn came from blogs and members of LinkedIn, there are lots of other examples found elsewhere.

Tim Hayden, President of Game Plan Marketing & Events In the past two months, used three strategies to identify more than 20 new business leads -and converted two into clients!

1. Focus on connecting. Anytime you receive a business card, search for that person on LinkedIn. Because you have their email, you can send them an invitation to connect. Do it right away so they’ll remember you.
2. Increase your visibility. Don’t simply add people to your network. Ask or answer questions on LinkedIn. Make sure your public profile is complete. But most of all, recommend people in your network and ask them to recommend YOU!
3. Make LinkedIn your homepage. Whenever I open my browser, I can immediately review my “LinkedIn Home Page” which shows what others in my network are doing and who they’re connecting with.

If you consider that LinkedIn can increase traffic to your Website, then Geraldine Roy says, “yes, it can increase your sales. “For small businesses, Google Ad key words and SEO can be a bit of a long shot. Social media is an interesting approach for businesses that have limited resources. We track the origin of visitors to our website and found out that 15-20% come from LinkedIn. Again, that’s a small business perspective but I’d say for B2B where most of the business comes from referrals, LinkedIn definitely has a play.

Attorneys are getting LinkedIn to clients online. Thomas N. Shorter, a shareholder in the Madison office of Godfrey & Kahn S.C., says he has LinkedIn set as his homepage. Every time one of his 200 or so connections adds a connection, he is notified of that. If the new connection is someone that Shorter would like to know professionally, he telephones his connection and asks him or her to make an introduction. This has happened a number of times since joining LinkedIn in February, and he’s garnered a number of new cases and clients via this method.

BizBox contributors Peter Montoya and Tim Vandehey state “if you are in the right industry and you are a savvy user and network, then absolutely yes [LinkedIn can help you build your business and cultivate your personal brand.]

Josh Morgan of “Don’t Eat The Shrimp” told the story of his success in Using LinkedIn as a Small Business Owner.  Basically, someone posted to LinkedIn asking for suggestions for a Bay Area PR agency with a special background in education; Morgan humbly put forth his own business; and–whaddya know!–soon enough he had himself a new client. Josh Morgan, recommends that you check out the “Answers,” section of LinkedIn. This is a forum for people to ask questions.

A LinkedIn member, Zale Tabakman claims success: “With sites like LinkedIn and Facebook, I get more business than I ever did with traditional print advertising.” His Blog and video, Seven Ways To Generate Revenue On LinkedIn, will help take you to the next step. He advises to use LinkedIn to create useful 1-to-1 relationships with people. Don’t focus on the 30 million or even your own large network of thousands. Think about getting to the right contact in a meaningful way.

One example Zale provides is to find 15 people to fill a seminar. Using Profiles he identifies 60 people who fit the profile of his target audience and reasons why they would want to attend. Then he uses his network to get introduced to them so he can invite them personally.
Wow! Several articles mentioned an A-hah! moment where they clicked about how to use LinkedIn to grow their businesses.

So to summarize, here’s the top 5 things recommended by those already getting sales from LinkedIn:

1. Add people you’ve just met and invite them via email to LinkedIn immediately after you’ve gotten their business card.
2. Make recommendations to people you like working with now or in the past.
3. Find people who fit your profile for sales you want to make and ask for introductions from people in your network.
4. Research the profiles of people and companies you think you’d like to do business with so you can identify why they need what you offer.
5. Answer questions in your field of expertise so people will come to view you as an expert.

Share your success at sales from LinkedIn by adding a comment. Hey, share your frustration too, if results are too slow in coming!

Now stop reading about sales from LinkedIn and start doing! Let’s create your personal profit strategies for growing profit. Call small business profitability coach Merra Lee Moffitt, CFP®. She can be reached at, 888-920-2030 or by email at merralee@captureprofits.com.

“Seek new clients, seize better income, capture more profit”

Caution: I’m skeptically optimistic about online linked networking using LinkedIn for real business profit results. (As I think maybe at least a million other people are at this point.)

I originally joined LinkedIn as a favor to my friends and associates so they could increase their online linked networking. Lately I’ve been giving worthy endorsements, so they’ll be viewed favorably as they find more projects and jobs. I know a bunch of people and with very little effort I garnered 56 connections and 172,000 people within three degrees of separation. So what?

But will it work as a source of projects, clients, and profits? Is it worth my time to get involved? Will LinkedIn be a profitable use of my time?  How will it benefit me?

Sorry I don’t know the answer just yet. But here’s my thinking process so far.

1. Connecting friends and associates online gives them something of value. They know I care, they get one more positive thing in their life, and they get to feel better. Giving them the endorsement they deserve helps build them as an authority in their field. So hopefully they’ll reciprocate if they think I am deserving. This is part of the “give and you shall receive” mentality, which has been very profitable for me so far in life.
2. It’s mainstream. As of October 2008, LinkedIn had more than 30 million registered users, according to LinkedIn at About LinkedIn. That sounds like something worth checking out.  So you wouldn’t be part of some lunatic fringe that probably won’t go anywhere. Although a recent study showed 40 million people in America have tattoos and I don’t really want to join them!
3. It’s not a time waster.  It’s free at its basic level. So far I haven’t found any better way to spend my late nights and early mornings when I’m not writing my blog, writing my book, spending time with my family, or in general having a life. It’s a better use of time than watching television. When I think of something more profitable to do with those hours than investigating LinkedIn, I’ll do that. So no chance of becoming a social networking junkie nor much time or money wasted while you check it out.
4. It’s Professional. So far Facebook, Twitter, and YouTube occur to me like people with too much time and too few written business goals (sorry to offend). I reserve the right to change my mind on them. LinkedIn focuses on people and where they work and where they have worked, so it’s people with professional interests and professional connections. That seems like something worth networking into. More like a Chamber of Commerce mixer which I have used profitably in the past to get clients.
5. Networking and particularly giving endorsements and referrals for me has been profitable in general. In my Professional Referral Exchange referral group, we are strongly encouraged to give referrals so that we will get referrals. Over my 4 years of being in that group I have gotten over 15 clients and try to give 40-50 referrals each year. So I know the concept of giving endorsements and referrals works as a strategy for getting referrals and clients absolutely yields results. LinkedIn doesn’t seem too far removed from a real world referral group.
6. It is increasingly used by recruiters to post jobs and to search for passive candidates, people not actively looking for a job. It allows me to look at job postings and find who I know who knows someone there. While I am not looking for a job, many of my friends are and it’s one more way I can help them.
7. According to Guy Kawasaki in Ten Ways to Use LinkedIn,” Most people use LinkedIn to “get to someone” in order to make a sale, form a partnership, or get a job.” Well, that sounds exactly like what I want.  So HOW do they do that? You can use linked networking into a target company, or find people with the job titles you’re looking for. Same with job seekers.
8. Is LinkedIn where your target audience is? Well my prospects are professionals and small business owners so that seems like a no brainer.  An example of reaching that target audience and food for thought using LinkedIn can be found in The Power of LinkedIn and The Speed of Trust by Paul Allen, Internet entrepreneur.
9. It helps build your credibility. People who’ve just met you don’t know if you are successful or good at what you do. If they check out your profile, they’ll find endorsements, where you’ve worked, groups you care about, and people you know. Intuitively, they’ll feel more connected to you and who you say you are. 
10. It helps build your reputation. When they see job history, areas of expertise, and participation in groups you’ll be solidifying your brand via linked networking.
11. You’ll be viewed as insignificant if you’re not there. According to Deb Dib, a coach who helps CEO and C-level executives find their next opportunities, in LinkedIn – What It Is and Why You Need to Be On It, “If you’re an executive and you don’t have a presence on Google, recruiters and employers are likely to dismiss you as a lightweight. Increasingly, if you’re not on LinkedIn, the same thing happens.” 
12. It may be like a business card, an advertisement, or a brochure. We all use them, they’re necessary to prove we’re professional, but don’t expect them to make the phone ring. No one ever said, “Hey I have your brochure and want to buy from you.” In fact, when they finally do call you to do business, they seldom mention the last place they saw your name or the catalyst that had them pick up the phone or send an email.  
13. Increases name recognition, website ranking, and link backs. Louise Fletcher in The 7 Mistakes You’re Probably Making on LinkedIn points out that LinkedIn is ranked very highly in Google. So if your name is part of your LinkedIn profile, you’ll be found on the web ranked more highly there than almost anything you can do on your own.
14. You can use LinkedIn to gain introductions. These are awkward because each introducer has to individually forward the introduction. However as you reach out to a new contact, every person who is between you and that contact gets reminded of your brand and message, and sees how you are approaching potential contacts. It’s more name recognition with a slight multiplier while meeting a new potential prospect. 
15. Recommendations help you build credibility, but you need to get recommendations consciously and strategically. Make sure they describe what you want to be most known for being good at. That is, recommendations about your brand and coming from people who aren’t employees or obvious family.

Bottom line, LinkedIn seems to supply name recognition, branding, ability to research people and companies you want to target, and online resume and references. If you know how to make profit from these things work in the real world, you should be able to extrapolate additional profits from the online world using LinkedIn.

So tell me is online linked networking using LinkedIn working for you?

Now stop reading about linked networking using LinkedIn and start doing! Let’s create your personal profit strategies for growing profit. Call small business profitability coach Merra Lee Moffitt, CFP®. She can be reached at, 888-920-2030 or by email at merralee@captureprofits.com.

“Seek new clients, seize better income, capture more profit”

So you thought you’d be generous to your clients. Or maybe you were just too busy last year to do the work necessary to raise your service prices. Now with costs going up and sales going down, you just want to kick yourself for missing the opportunity. Don’t despair. It is possible to raise your service prices even in this economy.

Here are a few ways to raise your service prices in a recession.

Raise your ‘grandfathered’ prices. We each have clients who’ve been charged the lowest possible billing rate because they’ve been long time clients. Their billing rates can sometimes be half the rate of our new clients. We love these clients and want to keep them. You can raise these service prices with still a sizeable discount to your new service pricing. Just tell them that their prices have been so much lower than your new clients that a small increase now is still significantly less than what you charge new clients.

Raise, but give a returning client discount. One way to make a services price increase more palatable is to raise the prices for the NEW customers only. You then tell your existing clients that you are raising prices, but that their cost will remain the same for 6 months or a year. That way, they’ll feel like they got something extra, but will have been forewarned of an upcoming increase.

Don’t rescind those gas charges just yet. It may seem silly to keep your recently imposed gas surcharge when gas prices have fallen 60%, but think it through. You probably should drop the charge for now, but be ready to put it back in place when gas goes back over $3.00 a gallon, which may be sooner than you think. By the way, if you missed the boat during the last gas price run-up, get ready because you’ll have another chance. Gas will go back up sooner than you think. You can gain brownie points by telling clients you’ve temporarily suspended your gas surcharge, which makes you a hero now, but forewarns them the charges will be back sometime in the future. That’s the hardest part of installing a gas surcharge – how to tell your clients. By the way, according to Angie’s List, 91% of service companies raised their service prices or thought about raising prices in 2007 as gas prices spiked. So don’t get behind the ball next time.

Travel time billing. In a similar vein, if your billing rates do not include travel time, now is a good time to institute it. You may decide to institute this charge when clients are greater than 1/2 hour away or more than 20 miles, for example. With online maps and GPS’s so popular, it’s easy to tell how far clients are before you arrive, so you can tell them upfront. With costs going up, you can add 1/2 price for travel time, or only bill for travel time one way.

You haven’t raised prices for several years. If it has been three years or more, use that as your rationale. You can be self-deprecating as you do it. Say, “I missed my opportunity to raise my service prices for the last 3 years, but with costs going so high, I really need to put in a minimal increase.”

Add a little extra. Your service price is supported by the value your customers perceive. If you add a new feature that people have been asking for, a price increase will go down easier. For example, adding a monthly activity report, a free screening test, extended hours or a technology backup will add value to your service. Be sure to pick items that cost you very little to give.

Keep your prices the same. You may ask, “How is this a price increase?” With the discounting pressures going on in this recession, when it seems everyone is lowering their service prices, holding steady can be a big advantage.

Schedule the raising – so clients have a time limit at the old price. As the recession dictates, you may have difficulty raising your service prices right this moment. But you can say something like, “Even though my costs are increasing, I’ll be able to hold off raising prices until June, so my clients benefit.” You’ve now done 3 things: 1) communicating to your clients you’ll be raising prices in a soft manner, 2) given your existing clients a reprieve which they will appreciate, and 3) given yourself a timeframe commitment for that increase you want.

Bundle.  Don’t give up. If sales are just too far down to justify increasing prices and you are sitting with a lot of extra time on your hands, don’t despair. Can you bundle two or three services people need and give them a service price discount on the whole? You would end up with a larger total sale than you would have gotten otherwise.

These are just a few of the ideas I’ve recently seen for raising service prices in this recession. If you want to discuss further, drop in a comment or call me. Of course cutting costs is another way to raise profits, but there are several recent blog posts I’ve written on that subject. If you haven’t read them, check out: A Cunning Cost Cutting System for the Busy Business Owner  or Cutting Costs Now: 9 Hot Areas for Creative Small Business Owners.

See also The Lowdown on Raising Prices.

Now stop reading about raising service prices and start doing! Let’s create your personal profit strategies for growing profit. Call small business profitability coach Merra Lee Moffitt, CFP®. She can be reached at, 888-920-2030 or by email at merralee@captureprofits.com.

“Seek new clients, seize better income, capture more profit”

Just because sales are down or threatening to go down, doesn’t mean there’s less work. In fact, there may be even more work as you scramble to improve sales and develop faster and better service delivered more frugally. So how can we possibly cut payroll costs? Furthermore, we mostly like our employees, and don’t want to lose them. So, given that we want to reduce costs and payroll is often the largest small business expense, what can we do to cut payroll without losing valued employees? I’ll include some real numbers, so you can see we’re talking real dollars. According to the State of Working PA, the average PA salary at the end of 2007 (the most recent I found) was $14.85 per hour. I used an average overhead of 38% to account for all retirement, FICA, workmen’s comp., and so forth. Your numbers will vary. These numbers are rough, if you want help with estimating and planning, just give me a call.

You can cut payroll without losing employees, if you…

Stop overtime. You can make a blanket policy that there be no overtime without specific approval on each instance. This may require a little more precise thinking in your work scheduling to get everything done. A single employee, who works even 2 hours overtime per week, will cost you $3,078 per year in time-and-a-half overtime.

Cut hours across the board. It is possible to institute a 35-hour work week. So for example, everyone takes off Friday afternoons or half-days staggered throughout the week if you need coverage. That’s also a 12.5% payroll cost reduction. You might be able to soften the employee’s concerns with instituting a 4-day work week, 9-hour day so that they get one less commute day. This will save $5,336 per average employee per year.

Freeze wages. Okay not a cut, but telling people there will be no increases this year will keep your cost from increasing by $1,281 per employee, figuring a 3% raise on an average employee.

Close the office for a week. Some restaurants close when the owner goes on vacation. Some offices and factories close over the Christmas holidays. The employees must then use their vacation time or personal time, to cover. If they have none, it’s time off without pay. This strategy has the benefit that your other operating costs (heat, electric, etc.) can be reduced that week along with payroll. A one-week shutdown will cut payroll $821 per employee not including additional operating costs saved. One of my small business owner clients uses this time to do strategic planning for the next year.

Suspend the bonus. If you have a bonus program, make sure it is tied to profitability goals and increases in profits. That way if the company misses the target, you don’t owe the employees for the bonus. And if you and the employees do manage to maintain or build profits, you’ll be glad to share. A 5% missed bonus saves you $1,693.

Strengthen your project accounting. I have never worked with a client who was billing ALL the work their clients had agreed to pay. I’m not talking about clients who don’t pay. This is NOT SENDING THE BILL for work completed. See my article: Undercharging Clients Can Be a Chronic Condition.

One client had an average of 1/2 hour per day, per employee where the time cards did not match the job cards billed to the client. This is missed income that the client has already agreed to pay! If your hourly billed rate per employee is even a modest $40, you’re missing $5,000 in billings and possibly paying your employees $2,565 that you didn’t bill!

Send them home early. If you have a lull in the afternoon, send some of the employees home early. This has the benefit of helping to match the work level with the expense level as well as cutting costs. Even 2 hours a week per employee would save $2,050 in a year.

Be slow to rehire. If someone does leave, don’t rush to replace them. Take your time. See if the remaining employees can handle the load. Are there activities that are not critical right now as you spread that load to others? Come up with a sales or profit measure of when you really will need that employee replaced. If this person filled a critical, skilled position, such as accounting, see if it can be replaced with a part-time, temporary contractor or job share with a sister company. If you could delay hiring a replacement person by 3 months, you’ll get a total savings of $10,673.

Improve your time and attendance management. Make sure that you can account for the hours people actually work. Time Trex, an automated Payroll and Time Management system, claims to save an average of $1,095 per employee. A time clock will recover time and money lost by employees coming in late, taking long lunches and breaks, and leaving late to get overtime. Plus there may be errors due to manual calculation of timecards. Sadly, only those in the employee’s favor will go unreported. Even a 1% error factor can cut payroll $200 per employee per year. Check out Time Trex’s calculator.

None of these numbers can be considered chump change. If you want to cut payroll costs without losing your employees, these are worth considering and implementing. What are your ideas?

Now stop reading about how to cut payroll and start doing! Let’s create your personal profit strategies for growing profit. Call small business profitability coach Merra Lee Moffitt, CFP®. She can be reached at, 888-920-2030 or by email at merralee@captureprofits.com.

“Seek new clients, seize better income, capture more profit”

Now is the BEST time to be in business for ourselves! Many people are getting laid off and those that aren’t are concerned they might be. There IS more security in being a small business owner because we have many clients, not just one employer. Here are some ideas for increasing your services sales during this recession.

You’ll be increasing services sales during this recession if you:

1. Improve your product. Add an extra feature; something people have been asking for. Make sure your clients know you have it by mentioning it, sending out postcards, or putting up a sign. You’ll need to mention it to everyone you see especially if someone seems like they need your product. Selling the product increases the services sales that go with it.
2. Improve the services. Make a checklist of complete delivery, all listed deliverables. Make sure every client gets the complete list of services. Contact clients after they purchase and offer them more service. Give them something more than you’ve ever offered before, and give it happily. Add a training component to your services, so your customers receive more bang for their buck.
3. Add an ‘extra’ feature. Give the customer “something extra”. Throw in a free add on.
4. Give a discount. But let them know you’re doing it. Everyone wants a discount. Try a 10% discount for signing up this month.
5. Think what others need. Help others survive the economic recession, and make money at the same time. Figure out what your clients need and give it to them. People still spend money during a recession, they are just more careful about it. Win the contract by meeting the other person’s needs and following up on each and every contact.
6. Think residuals. Develop and maximize residual income streams and passive income possibilities. Add a maintenance contract, a 6-month checkup or a yearly service that people need. That way you’ll be able to keep in touch and propose other services they might need.
7. Advertise. Promote bargains or discounts without undermining the value of what you represent.
8. Maintain professional and personal relationships. Have coffee with people who can be a center of influence or be an ongoing source of referrals. Send a thank you note or email after the meeting to leave them with a good impression. Find out what they think people need or what their clients need in your market. Make suggestions and offer to help.
9. Be Creative. Analyze your business, products, and services. Consider how they can be tweaked to receive more demand in an economic recession. You can make money if you find a way to offer more value to your products or services.
10. The law of reciprocity. People want to help others who have helped them. If there is someone you want to do business with, buy something from them first.
11. Don’t fall prey to large free trials. Seldom do clients who were given free service become a paying client. Give them only a taste, a short analysis or a free consultation, but not the answers themselves.
12. Ask for referrals. People who are happy with your service may know others like themselves. Ask for referrals on a regular basis. Have a referral card, a page after your invoice, or a question you ask at the end of each meeting. Let people know that you get a lot of referrals and it will become true.

Times are tough, but by thinking creatively you can generate more services sales in this recession and become even stronger after the recession is over.  Tell me how it’s going using the comments below.

Now stop reading about increasing services sales and start doing! Let’s create your personal profit strategies for growing profit. Call small business profitability coach Merra Lee Moffitt, CFP®. She can be reached at, 888-920-2030 or by email at merralee@captureprofits.com.

“Seek new clients, seize better income, capture more profit”

If your clients pay slowly, here’s how to collect client pay faster and with less effort.

There is a growing trend among companies to pay later and later. What was 30 days to pay is now becoming 45. Those previously at 45 are going to 60. Worse, small companies are typically targeted first. Here’s what you can do to speed up clients who pay slow:

1. Get paid at time of service. If your service is completed on the same day you show up, request payment immediately. You’ll need to ensure the client is there to pay you or get credit card authorization before you start. This works well when dealing with individuals as clients, but is a little harder when working with a business.
2. Invoice early and often. For longer projects, you will want to have progress payments. Make sure your project is broken down into small enough segments so you can bill about every 2 weeks.  So even if your clients pay slow, you’ll have started the pipeline earlier.
3. Begin charging a down payment on start of project. You can typically charge up to 30% to start the project, especially if you have materials to buy for the client.
4. Reduce the amount of credit you extend. If a client’s receivables become too large, request payment before signing up for any new projects. Be respectful, this is probably one of your larger clients and you value the relationship.
5. Keep better records of shipments and deliveries. Companies strapped for cash will claim they didn’t receive shipments or give spurious complaints to delay the time to pay. Make sure you are keeping delivery receipts, service authorization records, and correspondence about the project.
6. Start a credit and collections activity system. If you are not getting an Accounts Receivable report from your accounting system, start immediately. There’s not a lot of time involved if you systematically follow up with clients after 45 days, 60 days, 75 days. Call them with a friendly reminder, ask about the payment. Specifically, ask them when you can expect payment.
7. Have a credit policy. Specify your payment terms, how they can pay you, and what will happen if they don’t pay on time. Write these down. You can include them in your statement of work, your original proposal or even summarize verbally. You don’t want to appear heavy handed, just business like, so don’t make a big issue out of it.

Systematically working through these ideas will dramatically reduce your slow paying clients.  Collect your client pay sooner following these hints and turn your slow paying clients into fast paying clients. While there’s no quick fix, you’ll see results in just a few weeks.

Now stop reading about slow paying clients and start doing! Let’s create your personal profit strategies for growing profit today. Call small business profitability coach Merra Lee Moffitt, CFP®. She can be reached at 888-920-2030 or by email at merralee@captureprofits.com.

“Seek new clients, seize better income, capture more profit”

Let’s talk about better cash flow – how to hold onto and conserve the cash you have on hand. This is not about cutting expenses; see Cutting Costs Now: 9 Hot Areas for Creative Small Business Owners. This is about holding onto your cash for as long as possible. For ways to collect cash faster, see 14 Ways to Collect Cash Faster.

Better cash flow can be achieved if you:

1. Barter. Small businesses find that trading for goods and services will not only conserve cash; but also can substitute for borrowing and rack up savings. You don’t have to find a company to trade directly with; just join a barter network. Joining a group such as Corporate Barter Network gives you hundreds of local businesses and thousands nationally. In addition, they open your account with a credit so you can get started if there is something you need before someone else buys from you.
2. Ask for credit terms. Many bills can be paid in 30 days. But be sure you pay on time or your credit agreement could be removed. You want to keep that relationship on an even keel as well as avoid late payment charges.
3. Pay when bills are due, and not before. To save time, you can write your checks every week, but don’t mail them until two or three days before they are due. The time frame depends on the mail delay.
4. Create a forecast of incoming and outgoing cash expected for the next three months. Continue to forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Avoid using your credit line if you can.
5. Create a 30-day wish list before committing any new spending. If there is something you think your business needs and it is NOT directly related to delivery for a customer, pause before buying. You’ll get better cash flow by slowing your spending decisions.
6. Remove discretionary spending authority. If anyone besides you makes purchase decisions, say your spouse or your assistant or a partner, agree that nothing will be purchased before specifically discussing it. This may seem like a small thing especially if we’re talking about postage or office supplies, but can conserve cash and possibly reduce spending.
7. Create a self-imposed moratorium on new spending.  Unless you can find something else of equal value to remove or suspend. This exercise will help you rethink if the new item is going to provide enough value to supplant something else. For example, if you want to add a marketing campaign which costs $100 a month you might find a way to cut your telecom costs by $100 a month.
8. Cut Inventory. Think you don’t have any inventory if you are a service business; what about office supplies? Buying just what you need for the moment, conserves cash and keeps the employees and yourself from taking them home for needs there.
9. Buy Used. Furniture Soup here in Reading sells previously enjoyed furniture at dramatically discounted prices. Other items typically available used include books.
10. Re-negotiate with your suppliers, lenders, and landlord. You value these relationships and so do they. Ask if there is anything you can do to pay on a slower schedule, remove travel charges (hey, gas is down 50%), or reduce shipping charges.
11. Implement a cost cutting program with a top 3 list. For a simple system, see A Cunning Cost Cutting System for the Busy Business Owner. This way you’ll consistently cut costs without losing focus on building your customer base and keeping up revenues.

So summing up, better cash flow comes from spending less, spending slower and speeding income.  See Does Your Client Pay Slow? for more on speeding income. Give me comments below. What’s happening with your cash flow?

Now stop reading about better cash flow and start doing! Let’s create your personal profit strategies for growing profit today. Call small business profitability coach Merra Lee Moffitt, CFP®. She can be reached at 888-920-2030 or by email at merralee@captureprofits.com.

“Seek new clients, seize better income, capture more profit”

Smart small business owners are finding ways of cost cutting in their businesses. You don’t have to be struggling to think cost cutting is a good idea in this recession. If you want to thrive not just survive, here’s a system for cutting costs with just a little time.

These days it’s cool to be a cost cutter. Profitable business owners are cutting costs as prevention against possible decreases in sales so they can preserve cash. Struggling business owners, already seeing sales decreases, are cutting costs to keep going. Either way, here’s an easy, foolproof system.

Spend just 10 minutes a day and contribute thousands to your bottom line.

1. Create an excel spreadsheet of all known recurring and expected one-time costs. Separate out monthly, quarterly/yearly, and emergency spending expectations. Don’t try t make it a budget; just write down recurring items and their approximate monthly cost.
2. Write a goal. Here’s an example. “I want to cut $2,000 a month from my operating costs by Jan 31.”
3. Think of 3 specific items you believe have immediate cost cutting potential. Write them down on ‘My Cost Cutting Success List’. This will be your focus list. Write them as an action verb and cost cutting target amount. Example: “Install thermostatic timers in warehouse to save $150/month. “
4. Create a list of 10 items you are thinking about cutting after your initial focus list. Do not number or prioritize this list, just put down your ideas.
5. Post your ‘My Cost Cutting Success List’ where you’ll see it every day. Put it on your desktop, on your refrigerator, in your day timer.
6. Put time on your calendar to make it happen. Schedule yourself a half-hour twice a week to take action.
7. Work on one item on your focus list at a time. Make the phone calls, research lower cost alternatives, make a decision. Drive an item to completion.
8. Delegate where you can. Maybe an employee can research alternative credit card processors and send you the links or make a file. Perhaps a spouse can call and cancel an ineffective advertising service.
9. If you get stalled, work on the second item. Sometimes you have to send in something by mail or wait a week for a response. Don’t get stalled; that’s why there are 3 items on your focus list.
10. When you finish an item, put a checkmark next to your completed item. Update the amount saved if different from your initial projection.
11. Relish the accomplishment for a day or more. Don’t take the item off the list for a little while. Reward yourself with a feeling of accomplishment by seeing your success the next few times you look at your list.
12. After a few days, Move the Completed cost cutting item down to the Cost Cutting Success List. This is important; you’ll see your efforts pile up so your small efforts will result in big results.
13. Pull an item from your wish list that you think has the biggest, easiest to implement cost cutter. Write it on your focus list.
14. Add items to your wish list as you read, talk to friends, think about your cost cutting progress. Now that you are in action on cost cutting, you’ll have ideas showing up in your life. Just jot them down on your ‘My Cost Cutting Success List.’
15. Get a partner. Most exercise programs are more successful with a partner. Find someone to bounce ideas with, share your success, and get inspiration. Call them and share a success or get encouragement.

In just 10 minutes a day, you can cut your business costs by thousands of dollars. This system is foolproof! Call me if you want help getting started or for a copy of your ‘My Cost Cutting Success List’ Worksheet.

 Merra Lee Moffitt, AWMA, CMFC, CFP® spends all day, everyday helping business owners reach their financial dreams and goals by capturing business profits. She can be found at, 888-920-2030 or by email at merralee@captureprofits.com.