It's All Relative
We got 6 inches of snow in January, and that is a lot for our area.
We typically get 2 to 3 snows a year and 3 inches is the typical amount.
But the day after that snow, all I was thinking was, “we didn’t get that much snow.”
I realized that the Weather Underground app had changed my perspective.
Leading up to the snowfall, their predictions increased from 6 inches to 8 to 9 to 14 and ultimately 15 inches.
On the morning the snow started, they said 100% snow, 15 inches.
So I had my anchor point for a massive amount of snow.
6 inches in relation to 15 inches isn't that much. But 6 inches compare to our typical 3 is.
What are your anchor points in your business? Are they meaningful?
I talked with a new Amazon business owner yesterday that was thrilled with her 6-figure revenue number for her first year.
I had to help her re-anchor on profits and cash, which was the primary question on the call; “Where did all my cash go?”
Here is an anchor point for you: always have positive cash flow.
This allows you to grow, survive rainy day scenarios, and to properly reward yourself and your team for all the investment of time and energy you make.
Do you know if you have positive cash flow? Here's a quick way to tell.
From your accounting system, pull a balance sheet for your business with the date range December 31 2023, to December 31 2024 and have it display by years.
You'll see your bank balance totals for 2023 beside the 2024 totals.
Did they go up?
Now to be sure this is a real increase, look at your total liabilities just a little further down on the report.
Did they go up?
This relationship shows whether your cash is growing because of business performance or debt.
Debt is expensive, you want to grow based on performance.
If you are not growing in cash, let's talk.
That's what we do in our Cash Flow Accelerator.
We help you re-anchor and reorganize to enhance your business performance and start growing profit.
If you're ready to achieve that growth, book a call before May slots are full.
Cyndi
