In a recent mastermind session six businesses were challenged to find money. They did an amazing job of finding money within their business and in reducing expenses. In less than thirty days some found as much as $13,000. Where can you find money? Let’s look at options in your business.
1. Negative Account Balances- Review the list of negative account balances and invoice. You may be able to recover money that is outstanding to you. If you do not, then these amounts can be removed and counted as a business expense (bad debt).
2. Positive Account Balances-While this may not seem like found money it is. Do these customers even remember that they have a positive account balance? Reach out to these customers to use the balance. This encourages them to spend money in your business as they feel like they found money.
3. Outstanding Series- Run this report filtered by limited pricing option. This report shows customers who have services left to use and the date of their last visit. When running this report here is what you may find:
- People who have class packs to use but have not been in for a while
- People who have one or two visits left- upsell time!
- Services with a long expiration date. If you put 50 years for them to use the service then we need to clean this up one by one and get those expiration dates to a smaller number!
All of these findings equal opportunities to get customers using their services, and purchasing more services.
4. Expiring Credit Card- While this may not seem like finding money, it is. If a customer has an expired credit card and then a payment is processed you have now incurred fees for declined transactions and are out the money for the services. Staying on top of expiring credit cards ensures payments go through as they should.
5. Declined payments- These declined payments can be found in the membership report. Settle up on these payments quickly. Fees are incurred for failed transactions and customers may be receiving services unpaid. It is important to terminate the agreement if collecting on the declined payment is not an option.
These are areas of your business that are easy to stay on top of. While they may seem simple, it is amazing how they can affect your business negatively if they are not monitored. These are practical ways to find money in your business.