How poor cashflow kills more businesses thank lack of capital
3 tips for creating additional cashflow streams
I remember the days when I used to look at my bank account and wonder when my projects would end, so I could get a cash injection.
You see, as a property developer, money only lands when you have completed and sold (or rented, whichever is your strategy) the properties.
At times, the properties would take 3-6 months to sell post-completion and as the developer, you are the last one to get paid (agents, taxes, banks and investors - they all get paid before you!).
This means that I could go 2-3 years before being paid (if the project timeline went to plan… which 95% of the time it didn’t).
To add to this, there were projects that broke even (aka: no money OR payouts) OR that lost money (through owing it to banks).
But the good thing that came from this?
I became a ninja at budgeting and living my life to the fullest - on a shoestring budget.
Something that has definitely supported me in life and in my start-ups.
After 15 years in property with large debt exposure and no real knowing of when the next wad of cash would land, I began searching for other businesses that had more ease of cashflow.
It also became obvious to me that many large-scale property developers had cashflow businesses behind them and that was how they were able to stay in the game long-term.
This is NOT something the property educators tell you, by the way! Instead, they sell you the dream of becoming a full-time developer - without sharing that they have 3-4 cashflow streams supporting their property business.
This paints the picture as to why I have several businesses now and why I am passionate about growing a strong financial foundation, on multiple businesses, in differing industries.
Because you just never know what is around the corner (or perhaps you do, if you understand and follow the cycles).
Which leads me to one of my core financial foundation principles:
Cashflow is Queen.
Cashflow allows you to:
Explore investment opportunities that may present themselves
Make decisions from a place of balance because you aren’t desperate or in survival mode
Choose the right team members & pay them for their expertise
Invest needed resources to grow your business OR pivot when required
Increase your lifestyle (if that is a high value)
An overflow of cash is the goal.
I know you’re probably wondering how the hell to get started, so that you can have diversified cashflow streams of income yourself.
So here are 3 tips for starting additional cashflow streams:
Is there another market or niche you can focus on in your current business? For example, in my commercial cleaning business, I have business streams for cleaning clients' premises and I have also set up a shop for my teams (subcontractors) to purchase chemicals from me directly.
Not only will this be cheaper for them (as I already buy in bulk), but it will also ensure quality standards are upheld for my clients (because the types of chemicals and equipment used to make a big difference to the service delivery).
Do you have a skill set that could bring others value? Do you speak another language? Could you give language classes online for a specific group of people (eg: kids between the ages of 10-13)? This is one example of many possibilities.
Your clients can be right in front of you and the coolest thing is - you no longer need a website or intensive infrastructure to get started. Watch this live to see how I made $8K from one pdf and uncover the hidden streams of income you might already be sitting on!
Don't have a current business and not interested in creating a business but want an additional cashflow stream? I get it, not everyone is a crazy business lady like me. So instead of getting a second job, why not consider adding value to someone else’s business with the skills you already have?
The world of employment is changing and there are so many ways now to make money.
For example, I have a friend who is sick of being in corporate and going into the office. She’s a very diligent worker who anyone would want to have on her team. She decided that being around her children was her priority and knew there was a way around it.
She left her corporate gig and charges herself out at $105 per hour for her skills. This rate is much higher than what she was getting at work. So not only is she continuing what she loves to do, she takes more home AND gets to spend more time with her family. (Yes, I know, she is still swapping time for money BUT she is very satisfied with the exchange and the shift in her life.)
It’s important to really understand your motivators and why you want the additional income streams. Is it a fantasy and you’re not willing to explore avenues, hit a few bumps in the road and keep trying?
I get it, I wanted the additional streams of income NOW!
They take time and because I’m in it for the long haul, I’m prepared to wait and go on the ride.
Are you prepared to wait too, knowing what’s on the other side?
Coco x
