How To Establish Cash Flow When Starting A New Business
If you have not done so already, please read the first part of this two part article series on business outsourcing here – When Is The Right Time To Begin Outsourcing?.
In the previous article I discussed the importance of understanding your strategy for outsourcing and how it is important that you comprehend the sequence of tasks to complete, starting with the action that serves to eliminate the immediate constraint.
Despite clarity about what and when to outsource, it all means little if you don’t have the cash to do so.
Money Required
The one major problem that faces new start-up businesses, especially small enterprises launched by solo entrepreneurs, is a lack of cash flow. This problem is broader than just your business as the need for money impacts where you live and how you live as well. How you pay the rent, pay for food and live an enjoyable life is dictated by how much money you have and if your business is intended to be your income source, until it produces cash you’re in trouble.
As a catch-22 situation, many entrepreneurs must take jobs to generate “living” money, which drastically reduces the amount of time available to work on the business. How can you turn your new start-up into an income stream if you are too busy working a job to pay the bills that you can never work on your business?
Unfortunately there is no easy answer to this question and every person faces a unique situation. I don’t have a one-solution-fits-all proposal for you, but what I can do is explain how I made money during the times when my business was not able to support me.
