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When I took a full-time job in 1995 after 17 years of being self-employed, I was absolutely giddy knowing that every two weeks, regardless of cash flow, I would be getting a paycheck.
Being gainfully employed was, for me, an 18-month busman's holiday. Eighteen months of not worrying about cash flow. Eighteen months of smiling every two weeks knowing that my checking account would feel the love of my being gainfully employed.
Paychecks are a beautiful thing. I want one. I really really want one. As much as I love what I do, as much as I love the freedom, as much as I love not getting sucked into the vortex of office politics, as much as I know it would not be a beach party on the inside, cash flow drama is causing me to think about the unthinkable. Fulltime employment.
For the past several months I have been living with paycheck envy.
Cash flow is the bane of my existence.The stress can be crushing and unrelentless. 24/7.
It's what I detest about being self-employed.
There are very few consultants and business owners who don't have to grapple with the cash flow issue. It's just that these nightmares are rarely shared in mixed company or on blogs. Instead they are comiserated with trusted friends over a glass of Four Buck Chuck.
People are much more willing to share their sexual exploits then to share what its really like to deal with checks that don't arrive on time, bills that can't be paid on time, and contracts that are ignored, simply because they can be.
To the uninitiated, and that would be anyone who has never been in business for themselves and had to rely on that income to live, cash flow is something that has to be managed, and if you don't manage it, then obviously you are a blooming idiot who has no business being in business.
If you want to read about cash flow planning there are plenty of pundits who will tell you how to do it successfully. But that's a little like reading an instruction manual on how to ride a bike and then thinking as soon as you get on the bike you can ride without falling off.
Bike riding doesn't work that way, and neither does cash flow planning.
Still the pundits are happy to share.
So if you want to learn about cash flow planning from the blogs, you'll get this:
From Kick Start Your Company
Never spend a penny more than the cash you have collected last week. It doesn’t matter how much you are planning to collect this week!
What will happen when you follow this rule? Let’s see:
Receivables will improve
Since you cannot pay more than what you have collected; only way to fulfill your payment obligations is to collect more. Here are few suggestions to collect more:
Some of the gems offered up include getting more receivables. Are you jokin' me? Trust me, when you are in business and you know your cash is low, you understand in your core that you need more business.
From Inner architect there is this advice for Surviving When Your Business is Low
A reduction in your income may impact many things, including how you perceive yourself, whether you are conscious of it or not. If you have prided yourself on financial success, your ability to feel good about yourself may be impacted as you battle a tough economy.
How to manage this challenge:
1. Remember that a successful life is not all about the money. Look for other non-monetary ways to define success.
* Are you helping people?
* Are you growing as an individual?
* What are you contributing to your community or to the world that does not involve money?
Feel better? I don't. A friend of mine who is no stranger to cash flow woes was telling me about one of her friends who had been banking on the Republican National Convention to make their year.
Business for this individual has been so bad that she had to rifle through her jewelry box and "sell" unused gold to pay the electric bill. But she had hope. Until last week.
She was anticipating that the Republican convention would add $250 thousand to her bottom line. That's not going to happen now. She is out of hope and out of gold.
My friend has taken to selling stuff on eBay and playing credit card roulette to find the one that has enough credit
