Being a good business cash flow manager is not rocket science.
It takes having the right tools and having, or developing, the required traits for success. Do you have them?
Business cash flow management is a very simple science.
That’s good news! It means that there is a simple formula to follow, and if you follow the exact formula, it yields a specific, and predictable result.
The common denominator among successful, and wealthy, business owners is how they approach, and handle, making and using their business income.
Very successful business owners know and consistently use good cash flow management practices for one purpose, and that is to
direct the use of their money,
to control their financial future,
in order to reach their financial goals.
What are the traits that financially successful business cash flow managers have in common?
Decisiveness – The ability to evaluate the facts and make a decision without waffling around for weeks is vital to your financial success. Knowing when to say “NO” and when to say “YES” and acting on a decision is key in the cash flow management game.
One way to help you do an evaluation and make a good decision is to ask yourself better questions.
Instead of asking yourself
“Why can’t I bring in enough income so I have money left over at the end of the month?”
which starts you telling yourself all the justifications and reasons why you can’t, which undermines decisiveness and taking action,
“What can I do to ensure that I bring in more income than I need each month?”
Instead of asking yourself
“Do I have enough money to buy that item?”
“How much more income can I make and / or time can I save if I have and use that item?”
An honest evaluation of the answers to the second, and better, questions will help you make good decisions that you can act on immediately.
Determination – Successful business cash flow managers are determined to be financially successful. That determination is the foundation of every financial decision they make.
They stay true to their own goals. They don’t allow someone else to re-direct their mental, physical and financial energy to that other person’s goals.
They make decisions based on their own best financial interests. They don’t make self-defeating decisions based on what someone else will think of them, or sympathy for someone else’s situation or condition. They take care of themselves first and always, and expect others to do the same. That doesn’t mean they don’t help others, they most certainly do. But they help in ways that encourage others to take responsibility for themselves to make themselves successful.
Discipline – Successful cash flow management requires constant vigilance and discipline, yet it takes very little time or effort with the right knowledge and tools.
Successful business owners are constantly operating in a manner that uses their cash flow to achieve their own goals.
They are determined to succeed. They don’t dwell on past mistakes they made with their time or money. They make the decision to manage their cash flow correctly. They stay the course. It becomes a good habit that serves them well.
They don’t give up, or let other distractions break the habit, because to do so would not be in their own financial best interests.
A successful business cash flow manager isn’t born with these traits. They developed them. You can too.