Your weekly email with quick, well researched and impactful advice; easily actionable tools and resources; helping you, as a deeply aware and conscious leader, business owner & entrepreneur; outwardly Live, Lead and do Business from a more meaningful and purposeful space.

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Hi Reader

When I first started my own business, I was clear on why I was starting it. I had the tools, skillsets and progression roadmap that I would use as I transitioned from my full time job into working for myself.

The one major thing that I did not go into detail on, was the financial aspect of the business. I focused on just one element of it, which was revenue creation, as opposed to the full picture, that is, cash flow. Profit was not even on my radar.

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The Biggest Mistake I made, was that I overlooked the importance of distinguishing between cash flow, revenue and profit. Even though I knew all this from before.

• Revenue as you might know, is a vanity metric,
• Profit is a misnomer,
• Cash flow is what would tangibly sustain, grow and transform the business through market and other changes.

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Because I had focused my financial targets on just revenue creation, at the blind exclusion of the other 2, my business started to struggle within the second year of operation. In addition, I had not projected my business, on paper, for a longer time period.

Because I had Defined the financial aspect of my business from just a revenue creation perspective, and with that, only planned one year in advance, the system and processes that I Designed to support the financial aspect of the business, came up short.

As you know: Where we put our attention, our energy and focus goes, and What we Design aligns with what and how we have Defined.

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💵 Cash Flow allows you to put all your cards on the table, all the time, so you can see what is coming in and how, what is going out, how and when, where it is going, for how long or how often. This process allows you to make concrete decisions on how you can create and maintain a positive cash flow.

💵 A Positive cash flow increases your ability as a business to invest in growth, in transformation and to find other avenues of creating even more income whether through other product / service creation or enhancement of present products. All this requires more time, finances, personnel, skillsets, tools etc...

💵 The more cash positive you are, the more resources you have to continue providing quality service and products to your clients, maintaining quality and connection with all stakeholders in the process. Win win win. This is the same ethos in your personal finances as well - a topic for another day. Watch this space...

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💶 Revenue + Profit: Focusing on Revenue alone, promotes inconsistent strategies. There is danger of misalignment, a swaying away from one's core values, and keeping oneself small.

💶 Revenue creation alone hinders progression, keeps one short sighted and does not take into account - until its almost too late at times, or costly - fluctuating local and global markets, mindsets and behaviors.

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💷 Same with Profit, there is a real danger on a single minded focus on profit at the detriment of all other aspects of the business. I see this in organizations that restructure, and continually change things around without clarity, because their focus is just on profit at the detriment of even their best high performing, loyal employees and customers.

💷 Trust is eroded, making it costly and time inefficient to regain this important aspect in service and product provision. Transparency over and above honesty, i.e. 'Putting all our cards on the table' - as illustrated in this past email, is the game changer for an sustainability, growth and transformation.

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Remember that:

• People + Performance = Higher ROI (which includes revenue and profit)
• Know your people, both internal and external.
• Create conducive environments, products and or services, that help them perform, become better, make their lives better
• The result is higher ROI, including profit.
• The more you know your cash flow, the easier it also is, to determine what you can and or need to do, to increase the return on investment (ROI).

As a Business Owner

• It is important to really know who you are serving, and to continually ask what they also need and how, to see how your business can support, help them, or even if it is the right one for them. Think Psychographics.
• This means that your organizational strategy needs to be actionable so you are clear on who these people are, how to attract, train, retain and support them. This is part of the work I do, let me know if you need support.

When it comes to finances: Define how you would like your cash flow to look like.

• Compare that to what is happening now, then make adjustments Designed to encourage positive cash flow.
• From then on Display, the habits and behaviors that will help you stay on track.
• You can use the Actionable strategy to audit, monitor and evaluate your growth and transformation.

As a Leader:

• Know your people, that is, those you lead, and those that your team, department and organization serves.
• Define who they are with absolute clarity. Even when hiring, before you put the advert out, know with clarity the type of person, skillsets, personality, and values that will work well with what is required.
• Knowing the how, i.e., how you are going to be of service to them, allows you the journey to up level your leadership skills.
• Ask the question, what sort of environment can I create for this type of person to thrive in the organization; and or for us to always be the top choice for these clients (Define them too) to continue engaging with our services and products.
• Display the actual supporting habits and behaviors.

For your Team and Department

• Using the implementation plan, found in the 5 main elements of an actionable strategy as clarified here, allows you to expand on that financial aspect of the business.
• Focus on how to maintain a positive cashflow, so that your systems and processes are comprehensive, inclusive and holistic.

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Resources to help you along

Transitioning from an 8 to 5 full time job to Running your own Business 🌻This eBook provides you with a process to follow as you strategically prepare to transition from your own full time job... Read more Click Here to Get Your Copy 🌻

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Consultation for your Small Business A 60 minute consultation with Coach Barbara Mutedzi. Does your business consists of 0-5 people, and has an annual... Read more Schedule Your Consult Call Here 🟢

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Consultation for your Medium Sized Business Does your business consists of 6-20 people, with an annual revenue base of up to 51-150k? If so, then this Consultation... Read more Schedule your 75 minute consult here 🟢

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Okay my lovely, that is it for today, let me know if you need any support in accessing any of the above named services. Just hit reply to this email and ask away. I personally respond to all my emails. In the meantime, have a lovely week ahead of you! With loving kindness, grace and gratitude,