Cash Flow 101

⚠️ 𝐁𝐈𝐆 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐋𝐞𝐬𝐬𝐨𝐧 ⚠️⁣⁣
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A couple years into business, after paying myself very little, I had accumulated $75k in my business account. I felt accomplished. Quite frankly, I felt big ballin. 📈⁣⁣
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It was more money than I’d ever had by a LONG shot. 💰⁣⁣
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So I went and paid off $55k of debt I had... I figured I’d still have $20k and be all good.⁣⁣
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What I didn’t consider was the cash flow it took to run all operations. I had payroll come around the next week, we had to re-order inventory like we do weekly & then sales tax for the month hit - followed by payroll taxes.⁣⁣
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And before you know it... I literally had $600 in my business account & was freaking out. ⁣⁣
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$𝟕𝟓𝐤 𝐛𝐢𝐠 𝐛𝐚𝐥𝐥𝐢𝐧 ➡️ $𝟔𝟎𝟎 𝐢𝐧 𝐥𝐞𝐬𝐬 𝐭𝐡𝐚𝐧 𝐚 𝐟𝐞𝐰 𝐰𝐞𝐞𝐤𝐬. ⁣⁣
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Being in business is EXPENSIVE. ⁣⁣
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So many of you look at business owners & think they just have to be loaded. It takes a lot of risk, calculation, perseverance, WORK/TIME to accomplish anything... and yeah, if you work a good plan long enough, you’ll start to see the light at the end of the tunnel.⁣⁣
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But this was a HARD lesson for me to learn early in business & if I can save somebody from going through it, then that makes me feel pretty good. ⁣⁣
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𝐏𝐚𝐲 𝐚𝐭𝐭𝐞𝐧𝐭𝐢𝐨𝐧 𝐭𝐨 𝐰𝐡𝐚𝐭 𝐢𝐭 𝐜𝐨𝐬𝐭𝐬 𝐭𝐨 𝐫𝐮𝐧 𝐲𝐨𝐮𝐫 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬⁣⁣
(𝐎𝐫 𝐲𝐨𝐮𝐫 𝐡𝐨𝐮𝐬𝐞𝐡𝐨𝐥𝐝 𝐢𝐧 𝐠𝐞𝐧𝐞𝐫𝐚𝐥 - 𝐭𝐡𝐢𝐬 𝐥𝐞𝐬𝐬𝐨𝐧 𝐜𝐚𝐧 𝐚𝐩𝐩𝐥𝐲 𝐭𝐨 𝐀𝐍𝐘𝐎𝐍𝐄). ⁣⁣
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Save your money to invest. ⁣⁣
Save your money for a rainy day. ⁣⁣
Live frugal. ⁣⁣
Eventually you won’t have to.