Recently, I've had several conversations with clients and friends over Cash Flow...or more to the point the lack of Cash Flow. The cash register is ringing, the credit card machine is getting a workout, but there's not much moohla in your bank account. What's up with that?
Here's the real skinny on business, money, and you.
You make a few big sales; there's more money in your bank account than normal and suddenly your brain says "I work hard and I deserve to spend some of this money on ME." But let's look at the facts.
On your desk, filing cabinet, or in those unopened envelopes are the bills for your inventory. Oh yeah, you forgot you haven't paid for the merchandise you sold, your cell phone bill, and the car insurance. Don't forget you hired an assistant to help organize the office who still hasn't been paid, you signed up for a workshop and you need to pay the printer for your marketing materials.
It's true you work hard, and it's true you deserve many wonderful things but it's also true you have bills to pay. When you're a business owner you mostly come last....certainly behind your vendors, customers, and bank.
I get that it sounds boring to "manage" your cash but it's your job...you signed up for it when you opened your doors. And yes, whether you're a brick and mortar business or if your office is in your spare bedroom YOU are the CEO and the CFO.
How do you feel after your big splurge on Happy Hour with the girls, that trendy new winter coat, and oh, the boots too? When you look at your bank balance do you want to slam your head on the screen? Are you frustrated and want to throw the towel in?
Slow down...go on a low budget diet for a month. Building up a cushion of cash is essential to your success....too many businesses crash and burn because they simply ran out of cash and couldn't cover their bills. Don't let this happen to you.