4 Ways to Be Proactive With Your Cash Flow
I know it might sound crazy, but there are a lot of 6-figure and even 7-figure businesses that can’t pay their teams on time or take care of other expenses that are key to carrying out the day-to-day tasks in their business. This isn’t an issue of getting business and bringing in revenue. This is a money management problem that’s causing your cash flow to tank. Read on for 4 ways to be proactive with your cash flow so you can get those key expenses paid for on time and take care of your team!
The Issue With Cash Flow
You wouldn’t think businesses of a 6 or 7-figure size would struggle to pay their teams on time, but it happens more than you think! It all goes back to money management and setting your cash flow up for success.
Sometimes, we need a little wake-up call to help us reflect on what’s working and figure out ways to solve the problems at hand. As a business owner and leader, I’ve had my fair share of these, and I lovingly like to refer to them as opportunities for growth (OFGs).
The root of this problem comes back to cash flow, meaning you're spending more money than what's coming into your business. If you know me, you know that I’m a huge advocate for investing back into your business in order to grow and increase your income. However, this has to be a strategic decision, not something you do on a whim.
4 Ways to Be Proactive With Your Cash Flow
Luckily, there are a few simple ways to be proactive with your cash flow and ensure you make the proper investments into your business AFTER your team is paid on time.
Forecast and budget: Learn to anticipate cash flow gaps and plan accordingly.
Build a financial safety net: Establish cash reserves for slow seasons.
Hire an experienced and knowledgeable bookkeeper and accountant who can support your business's financial goals.
Diversify your revenue streams.
Although this cash flow issue is a hard truth, it's an issue most entrepreneurs encounter at some point in their business journey. There's no "entrepreneur guide" that tells you how to run every single aspect of your business.
Entrepreneurship is all about failing, learning, and growing. So take this as a reminder to take care of your team, be diligent about your cash flow and money management, and always keep learning, investing, and growing!
If you’re looking for support in getting your business systems and revenue streams set up for success (or brainstorming some fresh new revenue streams to bring more cash into your business), book a spot for my 1:1 Get Shit Done Coaching and let’s get the ideas flowing and the action steps mapped out together!