hi I’m Evan Carmichael and welcome to
another edition of ask Evan in today’s
video I’m gonna answer a question from
one of my newsletter readers kenosha who
was currently running a day care
operation she’s not making any money she
said 99% of the money that she makes has
to go back into the business and she’s
looking for money to expand the company
out so Kenosha I think this is gonna be
a tough one for you if you’re not making
any money yet it’s gonna be hard for
banks for example to give you money to
grow your business if you don’t have any
assets to lend against and you’re not
turning a profit yet so it’s hard for
them to see that cash flow coming in and
for investors it might be an opportunity
but again you’re not making money and
it’s not typically the type of business
that investors are really attracted to
so I think the best bet for you is gonna
be trying to get the money from your
customers and step once it’s your
service based business would be provide
awesome service so how can you make your
business the best daycare center around
make the kids love coming to your place
the parents feel really comfortable with
you when you’re providing basically the
best childcare service out there so
think about those options so that you
have people loving what you do wanting
to come back telling their friends about
it and your business is basically
exploding at the seams you can’t support
any more people coming into your
facility at that point you’re ready to
look at expanding the next thing once
you have that great service that you’re
offering you start to increase your
prices but if you have a lot of demand
you have a lot of people coming because
you provide this awesome service that
everybody wants then you should be able
to increase your prices and a lot of
entrepreneurs underpriced themselves and
you know they should be able to make a
lot more money than they can’t so you
could test it out just start with little
price increases and that’s a great way
to earn money coming in that you can use
to grow your business the last thing you
might want to consider is selling
subscriptions so I don’t know how your
model works now but maybe they’re buying
one month at a time or two months at a
time see if you could sell them for
longer so can you sell them for a season
so all the spring roll of summer or can
you sell them for the entire year and
you might give a little bit of a
discount to give them an incentive to
want to do that but the advantages you
get you
money upfront which can really help with
your cash flow and also give you the
money that you need to expand your
business so Kenosha I hope that helps
that’s my thoughts on it I’m gonna turn
it over to a friend of mine Danny Indy
who has some thoughts as well and he’s
gonna give you his advice
Rochelle thank you very much for your
email I get messages like this very
frequently from people who want to
expand their business or grow into a new
area or do upgrades or any number of
things that are gonna cost Mayan they’re
wondering where they can go to get that
money and I always point them back to
the same place which is asking well why
don’t they have the money already being
generated by their business you if you
mentioned in your in your message that
99 percent of the money that comes in
goes to pay your bills and to keep the
business running and so forth which
means that you aren’t really making a
profit you aren’t making extra money
that can be put aside and that’s very
concerning to me it makes me wonder
what’s gonna happen if there is an
emergency or something comes up or any
business needs to be making more money
than it costs to just keep everything
running and so my advice to you would be
to look at the way your business is
structured and find ways to improve your
profitability and at a very basic level
there’s two ways of doing that you can
lower your costs or you can raise the
money that’s coming in either way you
end up with more money in your pocket at
the end of the day so you can improve
the amount of money that’s coming in by
raising your prices which is something
that most people don’t think to do but
most people really should be doing a lot
of businesses especially small
businesses aren’t charging as much as
they should or could you can add an
extra product offer or an upsell or
cross-sell have something extra to offer
to the people already doing business
with you you mentioned that you’re
running a daycare maybe you could offer
an extra babysitting service in the
afternoon or you have some products that
you recommend and that you respect and
you think are valuable that the parents
might be interested in getting to use
with their kids at home and so you could
resell those and add a little bit more
money to what’s coming in you could also
look at reducing your cost you could
renegotiate some of your contracts or
see if you can switch suppliers or just
find a way to make things cost less if
you can increase
the amount of money that you’re bringing
in by five or ten percent and reduce
your costs by five or ten percent that
suddenly becomes a very big improvement
to your profit margin and that’s really
where the money should be coming from to
make the kind of improvements and to
grow and expand in the way that you’re
looking for so I hope that this was
helpful if you have any more questions
you can find me directly at firepole
marketing.com feel free to go there and
just send me an email I’m happy to
answer any further questions and of
course you can submit another question
to Evan and he’ll pass it along to me
thank you very much and have a blessed
day
Kenosha I hope that helped I hope what I
said was useful and I hope what Danny
said as well can help you grow your
business good luck I know it’s tough
when you’re not making any money you put
so much hard work and effort into trying
to get that business off the ground but
stay with it and try to implement those
ideas that we gave you if you guys liked
the video please give it a thumbs up or
leave a comment below it really helps us
make decisions on what new videos that
come up with and hopefully we’ll see you
in the next episode as well
you
another edition of ask Evan in today’s
video I’m gonna answer a question from
one of my newsletter readers kenosha who
was currently running a day care
operation she’s not making any money she
said 99% of the money that she makes has
to go back into the business and she’s
looking for money to expand the company
out so Kenosha I think this is gonna be
a tough one for you if you’re not making
any money yet it’s gonna be hard for
banks for example to give you money to
grow your business if you don’t have any
assets to lend against and you’re not
turning a profit yet so it’s hard for
them to see that cash flow coming in and
for investors it might be an opportunity
but again you’re not making money and
it’s not typically the type of business
that investors are really attracted to
so I think the best bet for you is gonna
be trying to get the money from your
customers and step once it’s your
service based business would be provide
awesome service so how can you make your
business the best daycare center around
make the kids love coming to your place
the parents feel really comfortable with
you when you’re providing basically the
best childcare service out there so
think about those options so that you
have people loving what you do wanting
to come back telling their friends about
it and your business is basically
exploding at the seams you can’t support
any more people coming into your
facility at that point you’re ready to
look at expanding the next thing once
you have that great service that you’re
offering you start to increase your
prices but if you have a lot of demand
you have a lot of people coming because
you provide this awesome service that
everybody wants then you should be able
to increase your prices and a lot of
entrepreneurs underpriced themselves and
you know they should be able to make a
lot more money than they can’t so you
could test it out just start with little
price increases and that’s a great way
to earn money coming in that you can use
to grow your business the last thing you
might want to consider is selling
subscriptions so I don’t know how your
model works now but maybe they’re buying
one month at a time or two months at a
time see if you could sell them for
longer so can you sell them for a season
so all the spring roll of summer or can
you sell them for the entire year and
you might give a little bit of a
discount to give them an incentive to
want to do that but the advantages you
get you
money upfront which can really help with
your cash flow and also give you the
money that you need to expand your
business so Kenosha I hope that helps
that’s my thoughts on it I’m gonna turn
it over to a friend of mine Danny Indy
who has some thoughts as well and he’s
gonna give you his advice
Rochelle thank you very much for your
email I get messages like this very
frequently from people who want to
expand their business or grow into a new
area or do upgrades or any number of
things that are gonna cost Mayan they’re
wondering where they can go to get that
money and I always point them back to
the same place which is asking well why
don’t they have the money already being
generated by their business you if you
mentioned in your in your message that
99 percent of the money that comes in
goes to pay your bills and to keep the
business running and so forth which
means that you aren’t really making a
profit you aren’t making extra money
that can be put aside and that’s very
concerning to me it makes me wonder
what’s gonna happen if there is an
emergency or something comes up or any
business needs to be making more money
than it costs to just keep everything
running and so my advice to you would be
to look at the way your business is
structured and find ways to improve your
profitability and at a very basic level
there’s two ways of doing that you can
lower your costs or you can raise the
money that’s coming in either way you
end up with more money in your pocket at
the end of the day so you can improve
the amount of money that’s coming in by
raising your prices which is something
that most people don’t think to do but
most people really should be doing a lot
of businesses especially small
businesses aren’t charging as much as
they should or could you can add an
extra product offer or an upsell or
cross-sell have something extra to offer
to the people already doing business
with you you mentioned that you’re
running a daycare maybe you could offer
an extra babysitting service in the
afternoon or you have some products that
you recommend and that you respect and
you think are valuable that the parents
might be interested in getting to use
with their kids at home and so you could
resell those and add a little bit more
money to what’s coming in you could also
look at reducing your cost you could
renegotiate some of your contracts or
see if you can switch suppliers or just
find a way to make things cost less if
you can increase
the amount of money that you’re bringing
in by five or ten percent and reduce
your costs by five or ten percent that
suddenly becomes a very big improvement
to your profit margin and that’s really
where the money should be coming from to
make the kind of improvements and to
grow and expand in the way that you’re
looking for so I hope that this was
helpful if you have any more questions
you can find me directly at firepole
marketing.com feel free to go there and
just send me an email I’m happy to
answer any further questions and of
course you can submit another question
to Evan and he’ll pass it along to me
thank you very much and have a blessed
day
Kenosha I hope that helped I hope what I
said was useful and I hope what Danny
said as well can help you grow your
business good luck I know it’s tough
when you’re not making any money you put
so much hard work and effort into trying
to get that business off the ground but
stay with it and try to implement those
ideas that we gave you if you guys liked
the video please give it a thumbs up or
leave a comment below it really helps us
make decisions on what new videos that
come up with and hopefully we’ll see you
in the next episode as well
you
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