4th Quarter of 2020

Picking the most important topic to discuss as we begin the 4^th quarter of what may be remembered as the most unusual year in our life time has been a difficult chore.

I may address other VIP topics in the coming weeks, but for this 1^st day of October, 2020, I am stressing the importance of building a strong cash awareness program in your life and business.

The cash, or lack of it, has been manifested in millions of ways. I read an article claiming that many Americans do not have $400 in ready cash to cover an emergency. Thousands of people are behind on rent, mortgage payments, car payments and utilities. Thousands of small businesses went under for a lack of cash to sustain themselves. They could not wait to see the outcome of the Pandemic or have the time to re-invent themselves and their businesses.

If nothing else, we have been exposed to the importance of cash management including cash on hand and liquidity management. That requires a change in philosophy (mind-set) for many small business owners. Instant gratification is no longer allowed; new purchases are put on hold if the old equipment still functions.

I am still a fast growth advocate, but now stress that a cash discussion should be the main topic at the monthly budget review. I read recently about a small family business that created a “cash war room” where survival, growth and cash reserves are the main topics of discussion.

As an owner, you are the business, thus your business budget must include your personal needs and reserve building capabilities as well as those of your business.

A six month cash reserve for home and business is the minimum goal I recommend. That is the amount of time needed to pivot your company into a new profitable direction in keeping with the current environment. On top of that a retirement account has to be fed on a monthly basis. No, I don’t buy the excuse “ I don’t make enough money to fund all those baskets”. Concentrate on how to increase your income and learn to put a little in each basket as you build up your income.

If you want anything badly enough, you will make it happen. No-one is born with a guaranteed successful life, yet we are all given the gift of wanting more. At BizQuack we can only help those who want to work hard to achieve their dreams.