or scroll down to get the highlights

Feeling Stuck? Here’s What’s Really Holding You Back

A few weeks ago, I was chatting with Lisa Hood, a member of my mastermind group and an amazing maker with a booming business. We were talking about her goals for 2024, and something she said really stuck with me. It was such a good example of why so many of us stay stuck in our businesses, and I wanted to share it with you because it’s something we can all relate to.

Lisa’s story highlights something we all do:

We default to the work we enjoy or that gives us quick wins, but we don’t always focus on the work that will lead to the big changes we really want. So, let’s break it down and see how prioritizing your time and energy can truly unlock your business potential.

The Quick Win Illusion: Why Chasing Success Keeps You Stuck

Lisa, like many of us, loves the creative side of her business. She’s a maker who thrives on formulating new products and launching them to her loyal audience. And why wouldn’t she? Every time she releases something new, her customers snap it up. That kind of instant validation feels great, right? You create something, put it out there, and boom—sales come in.

But here’s the thing. While these launches bring in sales and feel good, they were actually keeping Lisa stuck. We all tend to default to the work we enjoy the most, and in Lisa’s case, that meant constantly coming up with new products. But launching new products over and over again wasn’t moving her business forward in the way she wanted. And honestly, this is something a lot of us do. It’s easy to stick with what feels good, but it doesn’t always align with the big picture.

When Saying No Means Saying Yes to Growth

During our conversation, Lisa made a game-changing decision. She decided to limit herself to just one new product release for the rest of the year. Yep, just one. Now, this was a big deal because Lisa could easily have launched multiple products—she had the ideas, the audience, and the confidence that they would sell. But she made a conscious choice to scale back, and the reason behind it was eye-opening.

Lisa told me, “I realized what happens in the fourth quarter of my business is a lot more important than what happens in August.” And she’s absolutely right. The time and energy we spend on any given project is not unlimited, and when we focus on something small (like a single product launch), it takes away from the bigger projects that could create massive growth down the road. By saying “no” to a bunch of launches, Lisa was freeing up time to focus on the long-term goals that really mattered for her business.

Most of us underestimate the time and energy our projects will require. Launching a new product sounds simple, but think about everything that goes into it: messaging, pricing, listing, production, marketing… it’s a lot! And when you’re busy juggling all of that, it leaves little room for the big-picture projects that could take your business to the next level.

Lisa recognized that launching new products, while fun and profitable in the short term, wasn’t going to get her where she wanted to be long-term. 

Stop Managing and Start Leading Your Business

Lisa is working toward something a lot of us aspire to—becoming the leader of her business instead of being stuck in the day-to-day grind. She’s at a point where she doesn’t want to be the one making all the products, managing every sale, and handling every detail. She wants to scale, maximize profit, and have more time and flexibility.

For Lisa, that means stepping back from the constant cycle of product launches and focusing on acquiring new customers and streamlining her business. She’s making the hard decisions now, and it’s going to pay off in the long run.

This applies to you too. If you’re always chasing the next quick win, you’ll never have the time or energy to focus on what will really move your business forward.

What’s the One Thing That Could Change Everything?

Here’s where I want you to stop and reflect. Ask yourself: If I woke up one year from today and one thing had changed in my business, what would that be? What’s the one thing that, if it happened, would make the biggest impact on your business?

Now, once you’ve identified that, think about what it will take to make that happen. What are the projects or changes that you need to prioritize? And here’s the tough part—where are you spending time on things that feel productive but aren’t really moving the needle?

Time to Leap: Don’t Sabotage Your Own Growth

The biggest takeaway from Lisa’s story is that growth doesn’t come from staying comfortable. It comes from doing the hard work, the work you might be avoiding because it’s unfamiliar or it feels overwhelming. But here’s the good news: you don’t have to do it all at once.

Start by blocking off time in your calendar for those big projects. Create space for the work that will move your business forward. Don’t try to add one more thing to an already full plate. Instead, consciously choose what matters most and say no to the rest.

If you’re an Inner Circle member and feeling stuck or unsure of where to start, book a one-on-one call with one of our coaches. They’ll help you drill down on your goals and break them into actionable steps. It’s time to stop defaulting to what’s comfortable and start focusing on what will really make a difference in your business.

So, what’s the one thing you’ll change in the next year? Go for a walk, think about it, and make a plan. Your future self will thank you for it.

RELATED LINKS:

The Fear That Will Keep You Stuck

https://thesocialsalesgirls.com/the-fear-that-will-keep-you-stuck-episode-100/

Stop Avoiding This And Get Control Of You Sales

https://thesocialsalesgirls.com/stop-avoiding-this-and-get-control-of-your-sales-episode-229/

Ditch Your Decision Fatigue

https://thesocialsalesgirls.com/ditch-your-decision-fatigue-im-giving-you-my-framework-its-brilliant-episode-186/

6 Steps You Should Take To Get Results Faster

https://thesocialsalesgirls.com/6-steps-you-should-take-to-get-the-results-you-want-faster-episode-184/

New FREE Course

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales,
without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

New FREE Course coming September 22nd

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales, without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

or scroll down to get the highlights

How Michelle Smith Went from Managing, to Leading Her Business

Today I’m talking to one of my favorite long-term Inner Circle and Mastermind Accelerator members, Michelle Smith. Michelle has transformed her role from simply managing to truly leading her business, and her journey is so inspirational. 

First, let me tell you a bit about Michelle and her amazing business, Mama Suds. Michelle founded Mama Suds with a mission to help label-reading moms create a safe and clean home for their families. They make non-toxic household cleaning products and real soap. Over the past 12.5 years, Mama Suds has grown significantly, but it hasn’t been without its challenges.

Wearing All The Hats

When I first met Michelle, she was juggling multiple roles and struggling with production issues. She was wearing all the hats – from managing production to handling shipping and everything in between. It was overwhelming, to say the least. At that time, Mama Suds was operating out of a 2,000 square foot space, and Michelle was feeling the pressure.

The Turning Point

Michelle joined our Mastermind group because she needed accountability and support from others who were at a similar stage in their business. She had outgrown other mentoring groups and was looking for guidance on scaling and implementing systems.

One of the most significant moments in Michelle’s journey was realizing the true cost of her time and the impact of each task she was handling. We worked together to identify what I like to call the $500 an hour job – the tasks that have the highest impact on your business. For Michelle, this meant getting super clear on her goals, creating strategic plans, and delegating lower-value tasks.

Act Like A CEO

Michelle began to focus on high-impact tasks like SEO, building her affiliate program, and creating systems and processes for her business. This shift allowed her to step away from the day-to-day operations and focus on the bigger picture. She went from being the main person making products to having a team of 10 part-time employees.

As Michelle implemented these changes, she noticed a significant difference. She was no longer just managing her business; she was leading it. She had more time to focus on strategic planning, which led to better decision-making and growth. Her cost to acquire a customer decreased, and she started seeing the fruits of her labor.

This work provided benefits beyond Mama Suds, though. Not only can the business support her financially, but Michelle can now confidently step away from her business and know that things will hum along perfectly without her. 

Mastermind Accelerator Program

Michelle’s success story really is a testament to the power of support and accountability. Our Mastermind Accelerator Program was designed to provide exactly that – a small group of dedicated store owners working together to achieve their goals. The program focuses on creating and implementing strategic plans, ensuring that each member has the support they need to succeed.

If you’re feeling overwhelmed and stuck in the day-to-day operations of your business, take a page out of Michelle’s book. Focus on the $500 an hour work – the tasks that will have the biggest impact on your results. Invest time in creating systems and strategic plans, and don’t be afraid to delegate the lower-value tasks.

Michelle’s journey from managing to leading her business really proves that with the right support and a focus on high-impact tasks, you can transform your business and achieve your goals. I hope her story encourages you to take the next step in your business journey.

RELATED LINKS:

Check out Michelle’s website here:

https://www.mamasuds.com/

Get more information on our Mastermind Accelerator program here (link to sales Page)

Stop The Overwhelm And Get Back On Track

https://thesocialsalesgirls.com/do-you-have-the-right-goals-episode-109/

How Erica Supersized Her Profit And Wiped Out Her Stress

https://thesocialsalesgirls.com/how-erica-supersized-her-profit-and-wiped-out-her-stress-episode-223/

The Real Source of Stress For 6 And 7-Figure Business Owners

https://thesocialsalesgirls.com/the-real-source-of-stress-for-6-and-7-figure-store-owners-episode-214/

New FREE Course

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales,
without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

New FREE Course coming September 22nd

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales, without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

or scroll down to get the highlights

The $500 an Hour Job You’re Probably Not Doing

Here’s an easy question – would you rather get paid $15 per hour or $500? Exactly. So today I want to talk about the $500/hr job that you’re probably not doing, and what could change for your business if you did.

First things first, not all tasks in your business have the same impact on your results. Even though you’re working hard, maybe even putting in way more hours than you’d like, the truth is that some tasks are way more valuable than others. Just knowing this can help you make better decisions going forward.

We often resist delegating tasks because we think we’re the only ones who can do them right. But here’s the thing – you need to recognize the true cost of your time and the impact of each task. There are $15 an hour jobs, $50 an hour jobs, and then there’s the $500 an hour job.

So, what is this $500 an hour job? It’s simple but powerful – getting super clear on what you want to happen in your business. It’s all about assessing where you are right now and deciding what work needs to be done to get you where you want to go. This clarity is crucial for your success.

Now, once you have a plan, you need to qualify it. This is a step that many people skip. It’s not enough to just throw out a number and hope for the best. You need to ask yourself if your goals are realistic and achievable based on where you are right now.

For example, one of the members of my VIP group wanted to add $60,000 to her annual sales. She had a high-ticket item with a high average order value, but she didn’t know how to get those extra sales. We broke it down together, figuring out the exact number of orders needed per month and how to achieve that.

Steps to Achieve the $500 an Hour Work

Creating a plan is essential, but you also need to break it down into actionable steps. What’s it going to take to transition from where you are today to where you want to be? This is the $500 an hour work that has the biggest impact on your results.

Strategic planning is more than just checking off tasks. It’s about taking control of your business direction. When you have a clear plan and know your goals, you can focus on what truly matters and make confident decisions.

Mastermind Accelerator Program

Over the years, I’ve done many strategy calls with business owners. These calls are great, but I’ve realized that people need ongoing support and accountability to reach their goals. That’s why I’ve decided to change my approach.

I’m excited to announce a six-month mastermind accelerator program starting in September. This program is for six and seven-figure store owners, focusing on creating and implementing strategic plans. We’ll work together to ensure your plans are realistic and aligned with your goals.

If you’re just starting out or not at the six-figure mark yet, I encourage you to go back and listen to Episode 109. Invest a couple of hours in this $500 an hour work. It will give you big clarity on where you are and where you need to be, reduce decision overwhelm, and boost your confidence.

We often get stuck working through task lists, which keeps us where we are. Planning and strategic thinking are crucial to moving forward. I hope this helps you take the next step in your business journey.

RELATED LINKS:

Stop Overwhelm And Get On The Right Track

https://thesocialsalesgirls.com/do-you-have-the-right-goals-episode-109/

The REAL Source of Stress For 6 and 7-Figure Businesses

https://thesocialsalesgirls.com/the-real-source-of-stress-for-6-and-7-figure-store-owners-episode-214/

How To Do Less And Get Better Results

https://thesocialsalesgirls.com/how-to-do-less-and-get-better-results-episode-210/

Do You Have These 7 Habits That Predict Success?
https://thesocialsalesgirls.com/do-you-have-these-7-habits-that-predict-success-episode-205/

New FREE Course

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales,
without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

New FREE Course coming September 22nd

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales, without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

or scroll down to get the highlights

How to Set the Right Goals and Achieve Clarity in Your Business

Recently, something happened in one of my small group sessions with clients that made me stop in my tracks. It was such a light bulb moment, and I knew I had to share it with all of you.

It’s about setting the right goals.

We often get this wrong, and it keeps us stuck. But in this post I’ll introduce you to a  process to help make sure you’re on the right track.

Setting the Stage

Right now, in my business, we’re all about our Reliable Revenue Program. It’s a program we sell once a year to help you get (you guessed it) reliable revenue that you can count on year long. We support this program with everything we’ve got – a dedicated Facebook group, mentors, coaches, office hours, and calls for your questions.

Within this program, there’s a VIP group. This is an exclusive bunch who get an extra call with me each week just for strategy. We focus on strategic plans, and let me tell you, it’s transformative.

The Goal-Setting Process

Years ago, I found a document online, and we’ve adapted it over time for product-based businesses. It’s super cool and laid out vertically. On the left, you write your current status, and on the right, your vision for 12 months from now. This allows you to see where you are and where you want to be, helping you figure out the steps to bridge that gap.

Now, here’s the kicker – this is way harder than it looks. I’ve been doing this for so long, I forgot how it felt before I started. But sitting with my VIP group, I realized many of us struggle with this clarity. We get overwhelmed, feel like we’re not doing enough, and end up mentally exhausted. Sound familiar?

What’s On Your Laundry List?

During one of our sessions, I asked each person to describe the current status of their business. One by one, they gave me a laundry list of what they were doing – selling on multiple platforms, managing social media, running events. And when I asked about their vision for the next 12 months, it was more of the same – just more things to do.

This is why we get overwhelmed – we confuse more tasks with progress.

So, how do we fix this? Here’s a process that will give you amazing clarity:

Assess Your Current Status:

• What was your revenue in the last 12 months? (No guessing, get the exact number.)
• How much did you pay yourself? (Again, exact figures, not estimates.)
• What’s working well in your business?
• What’s not working well?
• How many hours or days a week are you working?
• Is your business profitable?

Write down these answers. This is your current status, not a list of tasks.

Create Your Vision for the Next 12 Months:

• What will your annual revenue be?
• How much will you pay yourself?
• How many hours or days will you work?
• What will your profit be?
• What problems will be solved?
• What will you be focused on?

These answers form your vision. There’s no to-do list here, just the desired status of your business.

Practical Implementation

Now, take a look at your to-do list and ask yourself if the tasks on it will help you achieve your goals. If they do, great! If they don’t, give yourself permission to remove them. You need to align your tasks with your goals to make progress.

When an opportunity comes along, assess it against your goals. Does it help you get where you want to be in 12 months? If yes, go for it. If not, it’s a polite decline. This clarity will make decision-making so much easier.

I hope this process helps you as much as it has helped me. After listening to this, take an hour to try this exercise and see what happens. Write down your current status and your vision. You’ll immediately know what your goals are and have the clarity to move forward.

RELATED LINKS:

How To Reach Your BIG Goals This Year

https://thesocialsalesgirls.com/2024-how-to-reach-your-big-goals-this-year-episode-197/

The Powerful Work That Will Get You To Your Goals

https://thesocialsalesgirls.com/the-powerful-work-that-will-get-you-to-your-goals-episode-159/

Try This Clever Way To Stay Motivated And On Track

https://thesocialsalesgirls.com/try-this-clever-way-to-stay-motivated-and-on-track-episode-213/

Ditch Your Decision Fatigue. I’m Giving You My Framework

https://thesocialsalesgirls.com/ditch-your-decision-fatigue-im-giving-you-my-framework-its-brilliant-episode-186/

New FREE Course

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales,
without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

New FREE Course coming September 22nd

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales, without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

or scroll down to get the highlights

How Erica Campbell Turned Her Faith-Based Gift Shop Into A Profitable Business

Erica Campbell had been flying under the radar in The Inner Circle for the past year, but she got my attention recently when she made a post in the group that truly lit me up. Erica’s business Be A Heart, a faith-based gift shop, saw what can only be described as meteoric success. Swept up in her business’s momentum, she did what so many “successful” store owners do and lost sight of the key metrics that should have alerted her to trouble ahead. As Q4 approached, Erica came to the terrifying realization that she was so short on cash she couldn’t afford holiday inventory.

Read on to find out how Erica righted the ship, went from stressed and exhausted to relaxed and excited to keep building on the solid foundation she’s created for her business.

Be A Heart’s Humble Beginnings

Erica’s journey to entrepreneurship started small, when she was a 20-something living in Brooklyn, New York. Working thankless hours at a school and facing some personal challenges, she decided to take up calligraphy in the evenings. She started to post her designs on Instagram under the handle @beaheart , and quickly gained a large following. This early success landed her a new career, this time in LA, creating wedding and event invitations.

After getting married and starting a family in 2018, Erica was ready to let go of the hustle of client work, and decided to strike out on her own selling products featuring her designs. From her original offering of cute baby swaddles, she quickly expanded the range to include other giftable items with a Christian point of view.

More Money, More Problems

Bolstered by her large social media following, Be A Heart saw big success from the get-go. But with no background in business, Erica joined an accelerator program which encouraged her to hire a team to support her fast growth. Because her revenue had surpassed 7 figures, Erica felt confident hiring a team that would allow her to “be the thinker” and stop sweating the small stuff.

But the problem with leaving the details to her team and only looking at the top line numbers is that they weren’t giving Erica an accurate picture of the true health of the business. And with Q4 fast approaching (her biggest season of the year), Erica had a very scary realization – her credit was maxed out and she still couldn’t afford holiday inventory. In the past she had foregone a paycheck at the end of the year, but with a growing family and another move to a new city, she couldn’t afford to do it again.

Something had to give.

“When I started, I wanted to employ other women…to provide for more people. But the reality was that in doing so, my family was paying for it. You know, it wasn’t the business [providing] it was my kids who had a stressed out mom who couldn’t be present.”

Doing The Hard Thing

On a friend’s advice, Erica read the book “Profit First” and quickly realized she needed to be prioritizing profit, not revenue. If you want to learn more about this type of accounting, check out Episode 82 She began the process of auditing her entire operation to find the leaky bucket – the places in her business that were draining cash without adding value. It was a painful decision, but she let go of most of her team and her ad agency, slashing expenses by 286%. She got into the nitty gritty of her books and applied the Profit First method to her monthly accounting, which much to her surprise revealed that she could pay herself and replenish her inventory. With her finances in order, Erica was able to look at her year holistically and reframe her concept of what “success” looked like.

Revenue Down, Profit WAY UP

So the post I mentioned at the top that really got my attention was Erica’s Inner Circle update – that although her sales were down 11% that month (April) her profit was up ONE THOUSAND PERCENT. I had to pick my jaw up off the floor. And what stood out to me really was the confidence in her post. Whereas before Erica would have seen a decrease in revenue and thought she was failing, now she looks at her profit and knows that ultimately her business will be able to weather a bad month here and there.

We should always celebrate good sales, but what we should truly celebrate is the store owner who understands the financial health of her business. Most of our students are women who know how to manage debt, provide a good income for their families and themselves, and can sleep peacefully at night. They’re not lying in bed worrying about credit card balances, lines of credit, payroll, or upcoming bills. When you constantly worry about these things, you end up making decisions based on fear.

How Erica Scaled Back To Boost Profitability

Erica knows better than to wear all of the hats, but she’s much more discerning now when it comes to delegating. Certain jobs, like social media management and email, are tasks she actually enjoys and is able to manage as long as she schedules them out ahead of time. She is realistic about the time she has each day to dedicate to her business (about 4 hours) and has learned to embrace efficiency, using her time to do only the tasks that will get her closer to her big goals. As a designer, it takes discipline to invest in only her best sellers, but she understands now that there are times when she can’t afford to add new products.

As for her team, Erica learned a lot about what not to do when she was managing a big one. Even though she had promised herself she would not be the type of boss to text her team in the middle of the night with urgent requests, she had found she’d become exactly that. Moving forward, Erica is honest with herself about her ability to manage a bunch of employees. Rather than looking at revenue as the measure of the team’s success, she defines what success looks like for each role. 

She is also now committed to selling more of what she already has (she credits our Ads Made Easy course with enabling her to manage her own social media ads and drive more traffic to her site) and leveraging her inventory management software to keep her best sellers stocked at all times. 

It has made all the difference to know her numbers, dig into the data, and make decisions based on figures, not feelings.

 Looking Ahead

“My goal this year is NOT growth. The goal this year is just more profit at the end. And to have that that peace of mind. And to find joy in it again.”

Erica has a third baby on the way, so she’s realistic about her goals for the remainder of the year. She’s focused on scheduling things out ahead of time, preparing to spend a little less time working in her business, and filling up her COGS account so that when Q4 hits she isn’t stressed about purchasing inventory.

And the best part is that now she knows exactly how she’s going to make that happen.

If you want to learn more about Erica, the “About Us” page on her website beaheart.com is really exceptional. You can also follow her personal journey on Instagram @EricaTigheCampbell.

RELATED LINKS:

Be A Heart’s Website

www.beaheart.com

instagram.com/beaheartdesign

instagram.com/EricatigheCampbell

3 Things You Can Do To Be More Profitable Today

https://thesocialsalesgirls.com/3-things-you-can-do-to-be-more-profitable-today-episode-219/

How To Create Profit Goals

https://thesocialsalesgirls.com/how-to-create-profit-goals-episode-209/

Do This Now And Be More Profitable

https://thesocialsalesgirls.com/do-this-now-and-be-more-profitable-episode-204/

Gross Profit: Will You Take Charge And Pay Yourself More?

https://thesocialsalesgirls.com/gross-profit-will-you-take-charge-and-pay-yourself-more-episode-188/

Pricing To Maximize Profit

https://thesocialsalesgirls.com/pricing-to-maximize-profit-episode-167/

New FREE Course

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales,
without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

New FREE Course coming September 22nd

GROW YOUR SALES

(without breaking the bank)

Conversion School is a step by step process to grow your sales, without spending a fortune on risky ad strategies, or discounting your products.

Works for Ecommerce stores at all stages.

Start getting consistent sales, and see significant sales growth every month.

or scroll down to get the highlights

Mastering Cash Flow for Six and Seven-Figure Ecommerce Stores

Before we dive in, I want to let you know that this post is especially for store owners with annual sales in the six, seven, or even multi-seven-figure range. It’s also great for those who are on the brink of hitting six figures.

Here’s the backstory: over the past month, I’ve had conversations with four store owners about money. What’s surprising—and it might shock you too—is that out of these four store owners who have annual sales of seven figures or more, three are facing significant cash flow issues.

There’s a common belief that once our sales hit a certain level (insert your dream number here), everything will get easier and money problems will vanish. We chase sales, thinking that reaching that magic number will solve all our problems. But for most store owners, it’s not true. 

I can relate to this personally. In my first business, which I ran for 20 years, I struggled with cash flow for years. It made me feel awful, wore me out, and led to poor decisions. This happened even though my accountant and banker assured me I was doing well and on track. I figured this was just the way business is, that it was normal. But it was truly exhausting.

I’d love to say I’m a genius who just knows all this stuff. But the truth is, everything I’ve learned about financial literacy, I’ve learned the hard way—by doing it. When I started my first business, I avoided looking at the numbers because I didn’t understand them and was maybe a little afraid of what I would find. I didn’t value that part of the business, which led to cash flow problems.

What I wish I had known when I was struggling with cash flow is this: If you’re running a six-figure-plus store and have cash flow problems, it’s a red flag. You need to stop, slow down, and figure out the cause. If you’re nearing six or seven figures, you know how to sell, so there’s a fundamental problem that needs fixing.

The 3 Most Common Causes Of Cash Shortage

• Mounting inventory. Inventory purchases can eat up the cash you need for operating expenses, leaving you short for payroll or rent.
• Debt repayments consuming your operating cash, especially with the ease of obtaining Shopify loans. They solve an immediate problem but take money back quickly, which doesn’t help in the long run.
• You’re not generating enough profit in actual dollars, even if your margins look okay.

What NOT To Do When You’re Short On Cash

When cash is tight, it’s scary. As a problem solver who knows how to sell, your instinct might be to rush to fix the problem. But often, you’re just stopping the immediate issue, and not solving the root cause.

Here are two common mistakes that can make things worse.

• Having a giant sale to generate quick cash.

It might solve your problem temporarily, but it won’t fix the underlying issue and could leave you in worse shape.

• Borrowing more money.
  
  It’s tempting and easy with Shopify Capital, but it’s a band-aid that leads to more debt and less operating cash.

Instead of these quick fixes, address the fundamental problem causing your cash flow crisis.

3 Steps To Fixing Your Cash Problem

Step 1: Set Up a Dedicated Inventory Bank Account

First, set up a separate bank account specifically for your cost of goods. Each week, transfer the cost of your sales into this account. This account should be used exclusively for inventory purchases.

You may need to adjust how you currently manage payments, especially if you’re using a credit card. Determine a percentage of your sales, based on your margin, and deposit that amount into this inventory account every week.

Do not use this account for any other expenses, and avoid purchasing inventory with money that isn’t in this account. This practice helps ensure you’re managing your cash flow effectively and puts you on the path to increased profitability.

Step 2: Quickly Increase Your Business Profit

Next, focus on creating more profit in your business quickly. In episode 219 , I shared some ideas around pricing adjustments and adding a shipping option, both of which can boost your bottom line with minimal effort.

Additionally, if you’re spending heavily on marketing, consider cutting back on those expenses and leveraging the assets you already have. For example, reducing your marketing spend by 20% but increasing the number of emails you send by 20%. Look into collaborations [Learn more in episode 215] where you can acquire customers without incurring high costs.

Make a short list of actionable steps you can take right away to generate more profit and start implementing them.

Step 3: Take Time to Assess and Get Help

Finally, set aside dedicated time to stop running in circles and really examine your financials. Whether it’s for a day or a few days, step off the treadmill and focus on identifying the root of your cash flow problems.

Seek help in pinpointing the issues and discussing strategies to address them. This is where the hard work comes in. Many people resist facing these tough tasks, but remember, you didn’t end up here overnight, and you didn’t get here intentionally. Tackling the hard things now will pay off in a few months, and you’ll be grateful you did.

Get assistance from a professional who understands product-based businesses or from a friend who has been through a similar situation. Whatever you do, ensure you have the support you need because most cash flow problems are fixable, and you deserve to sleep well at night.

Don’t Normalize Struggle

Once you regain stability and predictability in your business and feel financially secure, you’ll be in an even better place. I don’t want to see you struggle. Having been there myself for many years and thinking it was normal, I can tell you it’s not pleasant. It’s critical to slow down and address these issues correctly. You’ll thank yourself later.

Remember, I’m cheering for you. If you know anyone who could benefit from this post, please share it with them.

-Susan

RELATED LINKS:

3 Things You Can Do Today To Be More Profitable

https://thesocialsalesgirls.com/3-things-you-can-do-to-be-more-profitable-today-episode-219/

A Lesson On Fixing Your Cash Flow

https://thesocialsalesgirls.com/a-lesson-on-fixing-your-cash-flow-episode-166/

Formula For An Easy Collaboration You Can Do This Month

https://thesocialsalesgirls.com/the-formula-for-an-easy-collaboration-you-can-do-this-month-episode-215/

How To Create Profit Goals

https://thesocialsalesgirls.com/how-to-create-profit-goals-episode-209/

How To Get Control Of Your Cash

https://thesocialsalesgirls.com/how-to-get-control-of-your-episode-158/

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