This Is What Happens When Small Business Owners Don’t Think Long Term!
Please be as brutally honest as you can be here. How many times have you seen or heard about it.
An aspiring small business owner, service provider or startup entrepreneur, has extremely ambitious plans.
And they’re usually as smart as a whip,are they not?
Yet, for any number of reasons,practically before the inks dries on their first luxury car lease agreement. 😀
They are usually in some major financial hot water, and things tend to continual rapidly down hill from there. Correct? 😀
It’s almost as if, they all take a page from the very same financial ruin play book, correct?
In this rather brief post, hopefully, at least a few of the major reasons why, this all too common occurrence, keeps happening over and over again, will be revealed.
So Who Else Wants To Discover What Tends To Happen Over And When Aspiring Small Business Owners And Enthusiastic Startup Entrepreneurs Don’t Think Long Term!
Once (or after!) you boil things down to their basic elements. What you tend to find at the core of these intellectually gifted individuals problems, is, for whatever reasons. Especially when they’re first starting out.
They tend to spend way too much, on non essentials. Like fancy car leases, and outrageously expensive, commercial office space and the like. 😀
And they also tend to go overboard, trimming to the bone, the real, much needed, bare bone minimum essentials.
Dig really deep, and more times than not, you’ll find these main re-occurring themes, at the heart of their overall, cash flow problems and or missteps. Again & again.
To The Point It Seems The Brighter And More Gifted The Entrepreneur Is! (The Less They Initially Pay Attention To Their Cash Flow Forecasting!)
Case in point; super intellectually gifted startup entrepreneurs, and sadly, some aspiring small business owners, and or service providers.
Initially spend at least 95% of their available time, and other extremely limited resources, going after, initial first time customers, patients and or clients. Do they not? And well they should. Only not to the degree they typically do.
Because during their initial startup phase, while both their adrenaline and personal enthusiasm, is at all time highs. 😀
They tend not to focus (too much) on the actual bottom line. Erroneously thinking and heavily banking, on their gifts and talents, to make up and compensate for, any and all initial financial short comings.
But sadly,financial reality begins to rear it’s undeniable head, in a major way.Cash flow forecast, and or projections far too often tend ton fall way short.
Realistic Cash Flow Analysis And Assessment Is A Total Must Especially In The Beginning Of Any Entrepreneurial Venture!
And their initial assessment, of just how fierce, sophisticated and relentless, their major on and offline competitors are!And, just how little, real world, day to day experience, they initially started with, begins to figure prominently into the daily mix.Hello! 😀
And suddenly, their daily stress levels become practically unbearable, as they constantly scramble, trying to quickly fill all the ever increasing gaps.
Which weren’t nearly so readily obvious to them, when they drew up their initial plans on paper. And or mostly in their head. 😀
And their first major holiday season, offers a grim sneak peak, into what tends to happen to far too may aspiring small business owners, service providers and or startup entrepreneurs etc.
When just a handful of their major customers, -either- are habitually late with their payments.
And or they simply fail to pay their outstanding -accounts receivable- invoices at all. And or if they’re chronically late, and the cash strapped entrepreneur, can’t pay cash, nor quickly raise enough available business or personal credit, to hold them over, so they can order their necessary supplies and or standard inventory purchases etc.Ouch!
No Matter How You Slice Or Spin It Effective Cash Flow Analysis And Management Is Definitely The Name Of The Game!
Imagine -for just a second-, what it must feel like, to be on the hook financially, (legally obligated) to meet rather substantial payments, each month or quarter.
Which you-unfortunately- don’t have the money for, because a handful of your very best customers, patients and or clients, haven’t or won’t (for whatever reasons!) pay their overdue invoices!(So not good, right?)
And you not only don’t have at least six months worth of reserved capital set aside just in case! But, you also, don’t currently have, any type of proven, collection processes and or policies in place ahead of time! Because of all the spending you initially allocated, none of it foresaw a need for any of the aforementioned! 😀
Reality check 101 and counting. This is truly, just an extremely tiny sample, of what typically happens, to far too many aspiring small business owners, service providers, and or aspiring startup entrepreneurs, when they don’t think long term. Any questions?
P.S.Now as is customary during this part of our show.
Please share your extremely valuable comments (in the comments section below)
that you can apply to your business, product or service in the next 30 days or less!
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