Today what I want to talk about is one of the ways I deal with financial anxiety in my business. So, um, as you know, I’m growing and scaling my own business. We’re building up our team, we’re building up our client base. And, um, with it comes challenges with cashflow because there’s oftentimes where we commit quite heavily into investing in certain markets, marketing strategies, bringing new team members on, um, various things in the business to actually grow and build this infrastructure, and then that can create a lot of pressure in terms of cashflow.
Firstly, I do a lot of cash flow planning.
You might be sitting there thinking, well, um, this guy’s an accountant, and he’s saying you should do cash flow planning, it’s easy for him, he’s got that qualification. But, um, all I’d say is, if you don’t have an accountant who can help you with that, or us, um, then you’ve still got some really good software out there, like Float.
It connects up to zero, and it’s an amazing piece of software. Which helps you build and manage a 36 month cashflow plan. By doing that, um, what that means is you can actually just create a cashflow in a very good level of detail. And it’s the detail that gives you the confidence in my opinion, because when you’ve really thought something through, then that’s when you’ve got more faith in it to work.
Um, so I think being able to firstly just plan like my cash flows in a good level of detail that definitely helps me, um, overcome any cashflow anxieties in my business. Uh, the second thing that is really important in my opinion is, um, not always believing in the worst case scenario. I’ve done other videos about, you know, how to actually think about scenario planning because a lot of people, they don’t always approach it in the right way.
But if you’ve got this mentality that everything’s going to come down to the worst case scenario, Yes, your cashflow is always going to look awful. So what you’ve got really got to think about is like, you know, what is the most likely scenario, and that’s really important. And then when you understand that the, that can be a target, the most likely scenario, the best scenario can be your target, and you just have to think about what do I need to do to achieve the most likely scenario and.
The third thing that I was actually going to mention, um, which is, um, which kind of is relevant to this, but, um, it’s about cost control. If you start investing in loads of things that aren’t necessarily going to get you return, or the nice to have things, um, then actually you aren’t going to feel confident in your cash flows and your finances because, You, you, there’ll be lots of things going in your on, in your financial situation, which you can’t necessarily justify.
And that can, um, really damage your con confidence in your cash flows and create that financial anxiety. So in your business, you’ve got to be lean. Um, so whenever you do actually commit to some kind of expenditure, you’ve got to know what the benefit is or what have a very good idea of what the benefit’s going to be.
And that’s a, that’s really that third principle in my opinion that really helps me. Um, Come to terms with all the investment that’s going out because I’ve got a very good idea that’s going to return for us and I’ll see you at the next video.
