July 17, 2012
Enhance Lifestyle, Financial Strategy, Improve Cashflow
Recently I’ve taken to getting back into the gym up here in Kerang. You know how it is, the less you exercise, the more your clothes seem to shrink. Well I decided it was time to start doing something about it, and for some reason it got me thinking about cashflow.
What’s this got to do with cashflow? Well there are five things I’ve noticed that I lacked with my exercise that was limiting my results. And it’s what I see with peoples businesses, and in particular their cashflow, all the time! Things such as:
- No direction, and only working on the “easy” areas.
We all have our favourite exercises and we also have our “less favourite” exercises. I’m not particularly fond of the rowing machine but I know it gets me good results so I keep doing it. In business we all have our favourite things to do as well. Is only doing your favourite business activities going to get the results you want? If you’re avoiding your less favourite business activities and that’s limiting your results, you need to start doing them. Or better still, get someone else who is better skilled and has more time to do it for you. Unfortunately, I can’t get someone to do 45 minutes on the treadmill for me!
- Lack of consistency.
Flat out one week, not much the next. Will it get us results? Yes, but will it get us the best results, probably not. From a business point of view, its more likely to result in unorganised chaos. Much better to have systemised approaches to our cashflow situation. Eg. Monday is for debtor calls, Tuesday is for stock analysis etc.
- No plan.
Where am I today, where do I want to get to, and what do I need to do to get there? This is how you plan to achieve any goal. Certainly, you aren’t going to run a marathon on your first ever run – and the same goes with your business cashflow. You need to improve it in a manner that is realistic and within the lines of your business goals. To do this, you need a plan for what it is you’re going to work on and when. This should also prevent only working on the “Easy areas”, see number 1 above.
- Execution, not knowing what to do.
Exercise experts rave about using good form. What does this mean? Doing the exercise correctly. What does it mean from a cashflow point of view? It means every single task (exercise) is done in a manner that will provide the best possible results. Do you need a cashflow personal trainer to show you which areas need work, and how to do it?
Yep, left the most important to last. It’s no good having all the plans, ideas and equipment available if you don’t get out of bed in the morning. And that’s pretty easy to do given the weather around Kerang, Bendigo and most of Victoria lately! My wife has the answer; she books several personal training sessions each week. What does this mean? She simply has to get to the gym as she has committed to it and will be letting someone else down if she doesn’t attend. From a business point of view, who is holding you accountable? Can you do it on your own or do you need some external discipline? Remember, the person we are most likely to break a promise to is ourself.
So if you want better cashflow, I’d suggest the following. Have a clear concise direction, be consistent with your activities that fall within a set plan, do these activities well, and do it as often as you need to in order to make a difference.
If you would like some Cashflow “Personal Training”, please feel free to contact the May Partners team on 5452 1155, or email me directly on firstname.lastname@example.org