I revisit a past episode (#51) to give an update on my views about cash flow, debt, and the place that these two things have in entrepreneurship. Instead of letting negative thoughts and fearful perceptions of money control your business and your goals around profitability, consider the in-and-out relationship of cash flow as a normal part of early business ownership and first generation entrepreneurship.
In this episode, I cover:
- Revisiting the topic of cash flow and debt almost one year later
- Understanding the position negative cash flow and debt has in our lives
- Giving a reality check about where you’re at in your entrepreneurial journey
- Avoiding feeling rushed to reach a certain goal or success benchmark
- Making peace with spending the money you make
Challenge your perceptions
For many entrepreneurs, especially first-generation entrepreneurs, it can be hard not to fall into the same thoughts around income that a w-2 employee might have: debt is bad and low cash flow should be avoided at all costs. These are limiting thoughts for any entrepreneur, especially in my experience as a coach. My most successful clients don’t shy away from making investments and taking risks with their money, knowing they will reap the rewards for doing so.
“Before you make 3 million and before your first 5 years of business, you’re going to make money and you’re going to spend it.”
Change your perspective
When it comes to trying to view debt and cash flow in a different light, I recommend concentrating on the conscientiousness and confidence necessary to examine your thoughts and change your perspective. You can make debt work for you and you can make a negative cash flow work for you, but you cannot make either of those things work with a negative perspective. It is not about just feeling comfortable, it is about finding the path to create the business you want, even if that path isn’t a traditional one.
“The amount of money you have in your business bank account is 100% neutral.”
Create the results you want
It’s only through challenge and change that creation is ever even possible. No matter what your thoughts may be around your business, I strongly recommend sitting with the thoughts you have about profitability and risk, and deconstructing where they came from and how they may be impacting your business. Thoughts create actions, actions create results. If you’re avoiding taking certain actions because you don’t want to deal with cost, consider instead what you can gain from each decision you make.
“We think we need to just fix this problem instead of being in the reality of it.”
Revisit episode 51 in its original version here.
You can schedule a clarity call with me here: https://oyfn.co/clarity/