Too Much Demand and Too Little Cash Flow

No Cash

No Cash© 2016 Tony Bodoh

“I have more demand than I can take. I’m saying ‘no’ to a lot of really good opportunities.”

Vinny’s client was frustrated. He knew the demand for his services was there, he just could not figure out how to grow his business.  He wasn’t making enough to afford the hefty price of the new equipment that would allow him to take more work or bid on bigger contracts that he was receiving requests for. And, he could not take more work with the equipment he had.  He felt stuck in that place where he could see his dream just across the gap and he did not have a bridge to cross over to it.

After listening, Vinny asked, “How much money would you make if you had the equipment today?”

“But I don’t have it so what’s the use of thinking about it? It just depresses me that I can’t do what I want,” replied the client.

Vinny had been there before.  He knew his client needed to think differently about the challenge.  “Ok, so if you HAD the equipment today, could you easily make the loan payments and generate extra profits with the increased cash flow?”

His client paused and thought for a moment.  Then he said, “Yeah, I could do that. But, who is going to give me a loan if I don’t have the cash flow today to make payments?”

“You can get angel investing, a private loan, a line of credit or even a more traditional business loan from a bank if you have the right business plan and financials in place along with letters of intent from potential clients,” Vinny said calmly.

Minutes later they were deep in a masterminding session with one goal in mind: Identify every possible path the client could take to come up with the necessary funds to expand his business.  (This process is covered in Step 4 of our #1 Best-Selling book, ‘LEVERAGE: Achieve a Lot with the Little You’ve Got’.)

Within the hour the decision of which path to follow was made.  Next, they worked together to create the plan, outline the financials and sought out the select funding sources.

Within a few weeks the business owner was happily behind the controls of his new equipment and had hired additional employees to help him with the new clients who hired him.  He met with Vinny not long after and said, “This one idea is worth a fortune. I owe you so much. Thanks!” (You might also find this article valuable, “Using Your Assets Like Game Pieces“)

The client was stuck in his problem of not having the financial resources to get the equipment or to hire the team he needed to expand his business. He thought he needed to have everything in place before he could move forward. Vinny was able to provide a picture of the business’s future from a new perspective.

Let’s break down the steps.

First, Vinny made him aware that he could actually leverage what he already had put in place in order to grow his business.  He had:

  • a profitable operation, which proves to investors or lenders that his business model works;
  • the demand of clients who were waiting for him to have availability; and,
  • the reputation for quality work so he could grow beyond the customers who were waiting and continue to grow long after the initial expansion.

After identifying and documenting these intangible assets, Vinny helped his client put together his plan for growth. With that final piece in place, any financial sources he pursued would consider him a very minimal risk. All of the pieces aligned when he used the wisdom of his mentor to access a new level of thinking about the challenge he faced.

It’s not always easy to think of or be aware of all of your options, especially when you’re buried in taking care of the day-to-day business. When you’re stuck with a business problem, it doesn’t take miracles to move forward. It just takes learning to think differently about your business or your situation. With a different perspective, previously hidden solutions suddenly come to light.

Tony Bodoh is the CEO of LeaderBridge. He is also a Fortune 150 consultant, the founder of Tony Bodoh International and the best-selling author of “The Complete Experience: Unlocking the Secrets of Online Reviews That Drive Customer Loyalty“.  Tony is also a popular speaker at business and customer experience conferences.  Vinny Ribas is the President of LeaderBridge. He is the CEO of Top 4M Entertainment, the CEO of Indie Connect, a consultant to 1000+ small businesses and the author of “CEO Secrets: What They Know About Business That Every Entrepreneur Should“. Vinny is also a popular speaker at business and music industry conferences. Together they wrote the #1 Best-Selling book, ‘LEVERAGE:  Achieve a Lot with the Little You’ve Got‘ (with Connie Ribas) and teach an in-depth 4-week course based on it.