I think you know me and my personality. I’m an optimist. I like positive thinking. I do not like negative, energy-sucking vampires and naysayers.
But I’m also a realist.
And I’ve been around long enough to know that the economy will not just continue its upward trajectory indefinitely.
Winter is coming, whether it’s later this year, next year, 2021 or beyond.
As an independent contractor or business owner, you are extremely vulnerable when things turn south.
Especially if you haven’t prepared.
So that’s what today’s #TomFerryShow is all about – helping you make the adjustments necessary now so you’re in a prime position to capitalize on an economic downturn instead of becoming a victim of it. I’ve got eight tips to help you stockpile cash between now and whenever that shift occurs.
Let’s get started…
Tip No. 1: Develop A Laser Focus on Top-Line Revenue
On a daily, weekly and monthly basis, you need to be thinking about how much money you’re bringing in YoY.
Pay attention to those leading and lagging indicators, and ask yourself every day “What am I going to do today to move the needle on revenue?”
- How can you attract more clients?
- How can you convert more clients?
- How can you deliver more value to the marketplace?
Tip No. 2: Become Ruthless about ROI
Focusing on a specific return on investment for every dollar you spend on your business will make you a better businessperson.
Not only because you’re spending money more wisely, but because that awareness will increase your focus and motivate you to do whatever is necessary to hit your ROI goals.
Tip No. 3: Never Give Up on Leads
The old cliché is that good agents follow up until their leads “buy or die.”
It’s a great approach to emulate if your goal is to stockpile cash. Become relentless in your follow up and see what it does for your revenue stream and cash flow.
Tip No. 4: Start Living Off Less/Stop Buying Dumb Shit
You ever open your bank or credit card statement and amaze yourself with all the unnecessary purchases you made over the last month?
The impulse purchases. Eating out more often than you probably should. New gadgets you don’t really need. Fifty bucks here, twenty there, a hundred over there…
That stuff adds up quickly!
Most of it is caused by unchecked emotions. You buy stuff for a momentary thrill, but what you’re really doing is setting yourself up for disaster when winter arrives.
Make smarter decisions. Be more frugal. Make sure you have something meaningful to show for all the hard work you do instead of spending it on dumb shit you don’t really need.