I recently spoke at and co-hosted a private small business consulting event in St Pete Florida. I shared with this group one of the most profound realizations I’ve ever had over money, and I want to share it now with all CEO-AF blog readers and subscribers.
One member told me this was one of his biggest take aways from this event and I agree,
It is a powerful thought provoker.
𝐇𝐎𝐖 𝐅𝐀𝐑 𝐃𝐎𝐖𝐍 𝐒𝐓𝐑𝐄𝐀𝐌 does your company money have to flow 𝐁𝐄𝐅𝐎𝐑𝐄 it is 𝐑𝐄𝐀𝐋𝐈𝐙𝐄𝐃.
(Realized = it’s spendable money)
When you learn this about your company:
YOUR $0 CHANGES.
The water line HAS to move up.
For example: In my company, earned income flows through the insurance carrier, the homeowner, to us, to the supplier, crews, and sales people.
For each file this process happens FOUR TIMES for FOUR separate payments.
✔️ deductible that comes from customers bank
🏦 Acv that comes from carrier to HO
🏦 depreciation that comes from carrier to HO
💰 supplements that go from carrier to HO
I also have overhead on the money including office rent, marketing, W2 office position salaries & (TAXES 🤮 )
I also need a budget to “float the next project”
And in a season of growth… that float expands and gets heavier.
This is what tells me where my ZERO in my own bank is. At the time of this writing it is well over a quarter million dollars from ACTUAL zero. 👀
It was 50k. It grew to 100k. 100k was ZERO.
And if my account dropped to that….
I was tripping like it WAS ZERO (Because it is)
I knew when it’s time to get serious about going and head hunting the receivables that we’re past due, I knew to check on company health,
I knew to look for cash flow bleeds at 100k. NOT ZERO.
And then…..Knowing growth, storms, the cash float, taxes coming up due, new reps coming on, I had to move it to 250k PLUS.
That is now my 𝐓𝐑𝐈𝐏 𝐋𝐈𝐍𝐄.
Today I want to encourage you each to map out your “CASH FLOW RIVER.”
✔️ how far does your money travel
✔️ how long does that take
✔️ how many variables does it pass through that can hang it up
✔️ how much do you NEED on hand to run healthy
We see company owners buying the lambos, right?
And as long as that’s REALIZED INCOME and a profit distribution to the OWNER, that’s GUCCI.
Buy the damn lambo…. Just make sure your cash flow water line is exactly where it needs to be FIRST.
There is not ONE of you that can operate at ZERO so what does the new zero need to become?
DEFINING THIS and sticking to it…
👉🏼You’ll know when you are in “debt to yourself”
& it’s hustle thirty mode
👉🏼You’ll have reserves for the things that come up
👉🏼You won’t have to take out loans for expensive money
#WAKEUPTOWIN & stay Ceo-AF 🔥