There I was driving down a country road on my way to a client’s office. I was in a Kumbaya kind of mood so I was listening to some folk music, singing along to all the old favorites: Dylan singing Blowing in the Wind, Baez singing Amazing Grace. Ah, the sweet, sweet sounds of the Peace and Love generation.
Then a song caught my ear. It was a bouncy, happy song, and I found myself singing along. “Just a dollar down and a dollar a week, you can have everything you seek for a dollar down and a dollar a week.” It’s a tale of woe. A misguided couple who lives life beyond their means, sucked in by the promise of easy credit.
So long Kumbaya Mood, hello, stern Cash Flow Wizard. I reached into the back seat and pulled out my wizard hat and proceeded to lecture the windshield about the hazards of this approach to managing finances. I see this approach all the time in my line of work. Business owners taking a “fly by the seat of your pants” approach to money management. “I’ll buy it now and hope I have the money to pay for it when the time comes.” It’s a recipe for disaster taken from the cookbook of Financial Insanity. Add to the batter all those business owners who put every one of their financial eggs in a risky basket called business ownership. Second mortgage on the house, personal credit cards bumping at the credit limit, savings exhausted, retirement accounts emptied. It’s enough to keep the Cash Flow Wizard up at night worrying about all this craziness.
The simple, hard fact is this: Without a solid financial plan your business will always struggle and risk imploding (or exploding.) The sooner you understand that the sooner you can start to build a better business. And it is totally possible to do that. Look at successful businesses. You will see a solid plan in place for how to make money and manage money. It’s all about having a plan and having the discipline and flexibility to carry that plan through.
The change starts with you answering some simple questions. What do you want your results to be? Are you there yet? If not, what can you do to get there? Please don’t take the “dollar down and a dollar a week” approach to financial management. It keeps you AND me up at night worrying. The Cash Flow Wizard needs her beauty sleep.
If you’re ready to change the way you manage your finances and you want to inject some of the Cash Flow Wizard’s financial sanity into your business, get a copy of my course From Chaos to Control. We’ll both sleep better…and then maybe I can get that song out of my head. “Just a dollar down…and a dollar a week…you can have everything you seek, for a dollar down and a dollar a week…just a dollar down…”