Recently, the cash flow dance 💵💃🏻 has come up for a couple of business owners. I see this frequently when a business grows….they’re used to paying their bills on the 1st of the month (or 5th or whatever) and as they grow, so do their expenses, and they can no longer do that.
They’re investing in their business, in their team, in themselves, and paying everyone on the 1st just doesn’t work anymore.
Nothing is wrong with this! It doesn’t mean you’re a bad business owner. It doesn’t mean the expenses are wrong and shouldn’t be there. This is something that all growing businesses deal with! Don’t make the cash flow dance wrong.
The cash flow dance just means you can’t put cash flow on auto-pilot anymore. It’s now something you have to pay attention to. We’d all LOVE to pay our wonderful vendors on the 1st and be done with it for the rest of the month! That would be great but it’s just not reality.
If you have someone on your team paying your bills for you, empower them to use their critical thinking skills instead of being a 🤖. Consider putting your vendors into different categories and communicate which vendors MUST be paid first. The first category may be employees and the bills that keep the lights on. Also, I would alternate vendor payments with payroll weeks so it doesn’t all hit at once. Talk to your vendors and see if they’ll work out a schedule with you.
As the business owner, I urge you to schedule a weekly “Money Date” with your business. Make it fun and just make it a weekly event you enjoy. Think “Money Monday” or “Cash Flow Friday” and put it on your calendar every week!
The goal is to get you in a sweet spot with the cash flow dance. Then as you grow and change you’ll need to adjust and evolve the cash flow dance. Maybe even learn some new steps! Let this process grow and change with your business. Find what works for you! 🤗
How do you manage this in your business? Tell me in the comments below ⤵️