What’s Even More Important than Sales to Your Business?

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What’s Even More Important than Sales to Your Business?

Encourager-In-Chief: July 6th, 2016

Cash flow is king! It is the lifeblood of your business.

If you are just starting out in business, or if you’ve been running your own business that is not financially successful, it’s very important that you pay attention to today’s post. It’s great to have sales; it’s even better to have profits. However, your business will be DOA (dead on arrival) without cash flow.

When I started my very first business in 1986, I was running Dave Romeo Bass Tournaments. Even though I had lots of customers who loved my business and paid to register for my events, I almost put myself out of business.

Bass Tournaments was a very seasonal business. The winters were slow and the summers were busy. Being the 27-year-old novice that I was, I thought it would be a good idea to purchase all of my trophies and supplies in January so I would have everything I needed for my fishing tournaments come June. I also paid my entire year’s liability insurance in one lump sum at the same time. It was one of the biggest mistakes I ever made.

Most of my customers did not start sending in their registration fees until May. That meant I had almost 5 months without any new cash coming into my business. My cash flow quickly dried up and my business nearly went under.

Think of cash flow as the blood running through your veins. You could not survive without it. If you’re just starting a business, I encourage you to build up an adequate supply of cash reserves before you open your doors. If you have to moonlight, or work a part-time job, so be it, but give yourself a cushion. Money always goes out much faster than it comes in. If you doubt this, remember my words every time you go through your mail looking for checks.

Pace yourself on your spending and always prepare for an unexpected or emergency payout, which can leave your business very anemic or worse.

Don’t take a drive which requires 10 gallons of gas when you only have 5 gallons in your tank.
- Dave Romeo

This excerpt is taken from my Increasing Cash Flow, Sales, and Profits seminar. I also encourage you to sign up for my Survive and Thrive III: Increasing Cash Flow, Sales, and Profits 12-Day Drip Program.

Survive And Thrive III: Increasing Cash Flow, Sales And Profits

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