Cash is the lifeblood of every business no matter WHAT size and the abundance or LACK of, is what truly makes the difference between a SUCCESS and a failed business.
- Cash allows you to INVEST in the business.
- Cash allows you to do MARKETING
- Cash allows you to EMPLOY good people with the right skill sets you need.
- Cash allows you to COMPETE.
- Cash allows you to IMPROVE.
- Cash allows you to GROW.
- Cash gives you TIME and WEALTH.
CASH is KING.
The problem is we usually EXHAUST our start up funds EARLY on and from THAT point we are reliant on the ebbs and flows of the cash flowing in and out. What I have found is that those who CAN control their cash flow are invariably MORE successful than those who cannot.
Let me describe a scenario of what MOST people in small business experience:
- We do some canvassing, we get some business, we spend time fulfilling our promise leaving us NO TIME to do any marketing.
- There is a lull, we have a negative cash flow month ie we spend MORE than we make.
- Too much TIME goes into managing the suppliers looking for payment making it even HARDER to get out there and make sales.
- We get lucky and a referral leads to some more business and the cycle REPEATS.
So we end up with some POSITIVE cash flow months and some NEGATIVE cash flow months.
The ultimate goal is to REMOVE the negative cash flow months entirely and only have positive ones leading to growth and abundance.