“Predictability around the cash in business is the key to Independence and Freedom” ~ Lisa Humphrey
While a roller coaster ride can be a thrill and a rush of excitement, you definitely don’t want to have the same experience when it comes to the cash in your business.
The cash flow roller coaster looks like this:
On your way up, sales are great, the cash flow roller coaster is chugging along and you’re gaining momentum. You get excited because you’re delivering your service and you’re busy working, and not looking for more clients. The money is rolling in. Your bank account is finally growing. Life feels pretty good.
Once you reach the top of the large hill you climbed, you realize the work is drying up and you don’t have many new prospective clients lined up. You see the bottom of hill and it doesn’t look promising. Your heart begins racing and your stomach is churning as the cash flow roller coaster begins its decent.
You question yourself for spending money on the ride up, when you thought you had excess money and paid for help, new equipment or in celebrating paying yourself. But now, there’s no going back, you are headed straight down and screaming your head off!
Changing the Cash Flow Roller Coaster
I am a bit of an adrenaline junkie. I love riding roller coasters- feeling the thrill of zipping along the track fast and on the edge. At the start of any ride, I am pretty calm but may have a few butterflies in my stomach. My anticipation builds as we start up that steep, steep climb to the top, and it feels exhilarating. I don’t think of much more than the top, until I get there.
The cash flow roller coaster analogy is used quite a bit in regards to explaining and understanding the cash flow of a small business, and that’s because it is a common problem. I’ve seen it time and again, until the small business owner is ready to seek solutions outside themselves.
An objective, educated look at your finances can help you see not only where you are coming up short, but help guide long lasting solutions. That’s my role with owners- to get them off the cash flow roller coaster. I’m tired of seeing owners who don’t look like they’ve slept because they are so sick over how they are going to pay bills. I have seen and heard their fear and panic about the bottom, wondering if it will always be feast or famine for them, and having them wonder how much longer they can keep doing what they are doing.
Is this any way to live?
If you want off the fincial roller coaster that is your business, get on a predictible ride, take this free profit potential quiz. Section three is all about cash flow, the others make for a easier ride.