Arkansas HVACR NewsMagazine September 2019

Business

Again, be diligent about replenishing the H&V account on your first profitable month. 2. Evens Out Cash Flow – if you have funds available to make up the shortfall on negative cash flow months, you even out your cash flow. You know how frustrating it is when you get behind one month and then spend the next three months digging out of the hole. It’s a different mindset repaying yourself then owing your suppliers or vendors and dealing with past due calls from them. 3. Puts Your Team At Ease – whether you realize it or not, your demeanor changes when you are under the stress of dealing with the day-to-day cash flow struggles. Your team sees this and their performance changes along with your change in demeanor. When you’re tense, they walk around on egg shells. They will be tentative about taking ownership of their role for fear of having to deal with the ramifications of a wrong decision on their part. As a result, productivity suffers. 4. Gives You More Confidence In Running Your Business – Life changes when you are not worrying about every penny and where it is coming from and where it needs to go once it gets here. You will make wiser decisions when it comes to moving your company forward along its path of growth and increased productivity.

When you are stressed by cash flow struggles, you tend to have to micromanage every aspect of the day- to-day business. When you micromanage, you become the lid – the limiting factory of your company. It cannot grow beyond you. You have to be comfortable with the leaders you have trained and let them run. 5. Let’s You Sleep At Night – you have enough to deal with in running your business. When the day is over, you need to go home and enjoy your family. You can’t live to work but instead, you need to work to live. There are far more important things in your life than working. I don’t know of anyone who was on their deathbed and said “I wish I had spent more time at the office.” Life is short. Being able to go home at the end of the day and enjoy your family, getting a great night of sleep so you can function at a high level has tremendous benefits. Be intentional about getting to this point. At the end of the day, monies that you deposit into your hill and valley account will be allocated as profit when it comes to your profit and loss and you will pay taxes on those profit dollars but this is not about accounting. This is about being able to run your business on a day-to-day, month-to month basis. You will have those slow cash flow months. Plan ahead to be able to walk through them with ease.