Having walked the 12-step program, I can confidently say these steps work. Furthermore, I am confident these steps can apply to many other challenges we face, Including business.
Today, we are going to look at our recovery to positive cashflow.
Cashflow problems can be a daunting challenge for business owners, often causing stress, anxiety, and even leading to the downfall of otherwise successful ventures.
“Hi, my name is (your business name) and I have a cash flow problem….”
- Admitting There's a Problem: The first step in solving cashflow issues is acknowledging their existence. Don't bury your head in the sand; confront the problem head-on.
- Seeking Support: Just as individuals turn to sponsors or support groups, find someone who is winning in the problem you are facing. I promise they will help you.
- Taking Inventory: Analyze your financial situation. What's causing the cashflow problem? Did you stop doing something that was working? What are you not paying attention to now that was working in the past? What non-growth activities do you need to eliminate?
- Creating a Financial Plan: Mark a new plan. Execute it. Repeating the same behaviors will not change anything. That’s why you are where you are.
- Making Amends: Address outstanding debts, renegotiate terms with creditors, and establish repayment plans to improve your cash position. These can help increase cash flow immediately. Lower your pride.
- Build a Support Network: Our behaviors got us into this position. Surround yourself with a team moving forward to keep you accountable to the plan.
- Continuous Improvement: Keep asking, “What else?” When cash flow is positive, you can have fun
- Making Tough Decisions: Nothing worthwhile came without sacrifice. If it is a personal vacation, you need to cancel, instant cashflow wins. Whatever it takes!
- Staying Accountable: I like to call these “check-ins.” Set a time for regular check-ins to track your progress with your mentor or management team.
- Embracing Change: Typically, cashflow is addressed in MORE VALUE added to the business or customer. Explore new revenue streams, expand your customer base, and innovate your products or services.
- Making Financial Health a Priority: Just as recovery becomes a lifelong commitment, managing cashflow should remain a priority. Build financial resilience and maintain fiscal discipline.
- Helping Others: Share your experiences and knowledge with fellow entrepreneurs facing cashflow challenges. Support within the business community can be invaluable.
I hope this guide helps.
Here to Serve,
Parker Pursell | President of eQRP | LinkedIn