Very recently, several of my clients have begun sharing that their sales have turned up over the last couple months. Yeah, finally! Since I talk to business owners every day, and no one has expressed that sales are getting worse, this constitutes a trend, albeit an unscientific one. But, hey, any good news brings a sigh of relief at this point.

With sales up and seeing your business operate in the black, at least on paper, you might think your troubles would be over soon. Not to burst your bubble, but don’t forget about a brand new kind of cash flow squeeze. How could such a squeeze be new when you’ve already been dealing with cash deficit issues for well over a year?

During the recession, clients who pay an invoice began paying slower. Now with your sales going up, your expenses are probably going up too. So while your sales and billings might increase, the number of days to get paid has gotten longer. This is causing the new kind of cash squeeze. One where expenses go up because but the cash to pay for those sales doesn’t come in until 30 to 45 days later. Before the recession took hold your invoices might have been paid in 15 to 30 days. Now, you are carrying additional cost with slower pay and may already have drawn upon your credit line too much for comfort. This leaves you squeezed in a new and more uncomfortable ways even as your sales look more promising.

So, how do you compensate?

1) Your cost cutting days may not be over, even with light on the horizon and sales increasing.

2) Yes, delaying your own payments may still be necessary.

3) Invoice more often, for partial payments at start of contract and at delivery points.

4) Drawing on your credit line may be required even if you were lucky enough to have avoided it so far.

5) Get creative, or call me and we’ll get creative together.

And lastly, don’t forget to count your blessings. Slashing of prices just to stay competitive may soon be over. Wondering when it will end is a thing of the past. You survived the Great Recession of 2008-2009. And while you may never return to the glory days of 2004-2005-2006, you are now better prepared. Remember, good habits get formed in bad times, but we get to keep those good habits forever.

Now stop reading about recovering from the recession 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.

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”