What Can You Do When Your Business Is a Money-Suck?
It’s something I hear from people in my entrepreneur network constantly — people are passionate about what they do, but their business is sucking the income dry. When you see the levels of your well getting lower and lower, the stress can feel immeasurable. You started this entity with a vision and a purpose, and you knew there would be investments, but when the day comes that it is impossible to log into your bank and look at your balances, it is time to make a few changes.
You may be asking “but how do I know what changes to make?”
When you feel the pressure of your business becoming a cash-eating monster, your first instinct may be that you need to grow super fast. In fact, I bet you’ve been wracking your brain for some time trying to strategize or find some loophole that will get you to the next level and take your bank account worries away. Just one big client, just another contract, and you’ll be set! It’s great in theory, but then you catch a client, or sign a contract… and find yourself back in the same position yet again.
That’s where cashflow management comes in. Even if you close that next deal or sign that next client, it is meaningless until you know where the resulting income will be implemented within your business and within your life as the owner.
With any business there is an ever-evolving inflow and outflow of cash. But if you cannot pin down where the cash is coming from and where it is going, you will never understand the heart of your business.
At the heart of it, Profit First is a cashflow management strategy that places your cash into different buckets and allows you to physically learn the paths that your money takes—and in that process you can learn which paths are dead ends, and cut those off.
Where to go next?
Implementing cashflow management is simple, but it isn’t easy. With the help of a strategic partner like ProfitMax Professionals, you will be able to implement Profit First in a meaningful way within your business, better understand the core of how your business is functioning, and make key decisions to maximize the benefit you take from your hard work. And, after a while, and with a bit of elbow grease, the cashflow-eating monster will be tamed.