According to the Associated Press story in August 2013, two experienced F-16 fighter pilots clipped wings in a mid-air collision. One pilot managed to fly his plane back to joint base Andrews in Maryland, while the other pilot was forced to eject over the ocean and lost the plane. Both were experienced pilots.
The pilot who ejected made it safely to the surface of the ocean where he was rescued, thanks to having not only an ejection seat and a standard operating procedure for such an event, but also having a parachute. Without the parachute, the ejection seat and procedure wouldn’t have saved his life.
It’s the same with running a business on the cash flow management lines. You never know where, when, or how, a crisis is going to occur, and it can be a real business killer if you are flying without a financial parachute.
Yes, you have to create the parachute and keep it handy, but why wouldn’t you? It’s simple enough, with the proper cash flow management system, to set small bits of cash aside for your “financial parachute” to cover:
Legal Defense & Taxes
As a business owner, you know that ultimately all the responsibility and liability rolls uphill right to you. That’s why I built the Cash Flow Mojo® software system with a parachute creation feature. We call them “buckets of cash” that get filled up slowly and steadily – little bits each week – and are there to bail you and the business out when you need tools to eject out of a financial situation.
It’s funny, when you are controlling your business cash flow and are prepared for a mid-air collision with an ejection plan and a financial parachute, that type of situation rarely happens, and it isn’t a worry that something might happen either.
So as you are flying along doing your daily business, be diligent about making sure you are creating that parachute and keeping it packed, within your reach, and ready for deployment as part of your regular cash flow management activities.
Cash Flow Management Rule – Don’t Fly Without A Parachute