Solopreneurs said in The 2010 and 2011 Solopreneur Surveys that cash flow causes them the most pain in their businesses. Here are some of their comments from the 2011 survey:
“The ebb and flow of my business is so difficult — especially the months when I have to dip into reserves.”
“I don’t know if I can hang on. I have 3 months of cash remaining. I’m afraid I’ll have to go back to my old job.”
“Cash flow is a make-or-break challenge for me.”
Conventional wisdom says cash-flow problems can be solved with improved billing, improved collections, or the development of recurring income. Those are excellent ideas, but they assume that the business itself is sound.
Fundamental Causes of Poor Cash Flow
The causes for cash-flow issues go deeper than that and can be traced back to critical steps that are skipped in the startup stage. Three fundamental causes of poor cash flow are:
• Not operating in the right niche
• Capabilities that don’t match marketplace needs
• Lack of enthusiasm for the work
In response to the cash-flow pain, I have created a custom course named “Destination Cash Flow: Transform Your Idea Into a Mighty Solopreneur Business.” It’s a 21-day course that focuses on the early startup stages, with the clear intent of building a solo business that will cash-flow.
Destination Cash Flow will be a foundational product/service offering for me, and I envision making it available at all times. The course utilizes private coachsulting by phone, private coachsulting by email, and a customized curriculum.
Inspired By Whitewater Rafting
The Destination Cash Flow Web site uses a Western/rafting vibe. The great rivers of the American West inspired Destination Cash Flow; I love whitewater rafting, and it’s a powerful metaphor for the solopreneur life. Both:
• are risky
• are fueled by high energy and enthusiasm
• require methodical, step-by-step preparation
• demand swift responses to unexpected obstacles
• rise and fall on the ability to solve problems
Check out the Destination Cash Flow Web site and let me know what you think.