The sky isn’t falling, but that doesn’t mean you shouldn’t prepare for when it does. Treading water only works during the calm, but it won’t keep your head above the waves when things get rough. Luckily, Tom Ferry has some advice that’ll keep you and your business afloat when the market goes south.
These eight financial tips will help any business plan for future success even when the market isn’t favorable and if you follow each point, your wallet and sanity will thank you for it.
1. Be Top Line Revenue Focused
How much money are you bringing in today, this week, this month, compared to what you brought in last year?
Tracking your revenue each year and focusing on what you can do to move the needle for more revenue today will help you set up for the future when the market is less than friendly to your business.
2. Be Ruthless on Your ROI Results
Everything you put into your business is an investment and these come in the form of time, money, and manpower. Tom urges you to be ruthless with your return on investment focus on anything that you put into your business?
Developing these stringent metrics on ROI will help you make sure you aren’t wasting capital or other resources on strategies or investments that aren’t paying out for your business. Cutting the slack out now will save you many headaches in the future.
3. Never Give Up On Leads
It’s the old “buy or die” cliche.
If you want to have the cash set aside for when the market makes a dip, you’re going to have to put in that extra work to close every lead possible. Make that extra call. Send that extra email. Do whatever it takes to close that sale.
4. Start Living Off Less
This one is pretty straightforward. If you want more money and security in the future, you need to spend less money now. As Tom Ferry says, “Stop buying dumb s***.”
It doesn’t get any simpler than that, which leads into his next tip.
5. Save More Money
“Do you really need that new iPhone? Is the current one working fine?”
Tom illustrates our habits of spending, and spending, and spending until the market adjusts and at that point some of us are in trouble. This constant spending whittles away our future security.
Save money, don’t spend so much.
6. Consolidate All Stupid Debt and Pay It Off
It’s not easy keeping track of and paying off debt to multiple sources. Instead, Tom recommends that you go to your bank and discuss some sort of debt consolidation plan with low interest rates and favorable terms.
Once you pay off all of that debt, your nerves and your financial future will thank you for it.
7. Get Your Lines of Credit in Order With Your Banks
It’s best to sign up your lines of credit when you don’t need them than to seek them out when you’re in trouble. When you don’t immediately need the credit you negotiate the terms that you want, however when things go wrong, that’s when you get hit with high payments and high interest.
8. Figure Out Who Your Investors Will Be in the Coming Years and Line Them Up Now
It’s important to seek out and line up your potential investors now so that you have them when you don’t need them and have access to them when you do, just like your lines of credit. Look out for those investors that want to invest in your and your business while things are going well.
There’s lots of useful information left over in this 15-minute video for you to use, so don’t forget to give it a watch either here or on Tom Ferry’s YouTube channel!